Laserfiche WebLink
CENTRAL MINNESOTA DEVELOPMENT COMPANY <br /> • SBA 504 Loan Application Process <br /> ss <br /> 1) Initial review with client to discuss project and SBA loan guidelines. <br /> 2) Financial analysis is performed by CMDC to determine project feasibility. <br /> 3) CMDC proposes a financing structure which it believes would gain loan <br /> approval from the SBA. <br /> 4) Assuming Small Business Concern (SBC) wishes to proceed with the formal <br /> loan application, a Retainer and Application Agreement are signed, and a <br /> $1,500 refundable deposit is collected (refundable if, and only if, the <br /> project closes and bonds are sold for the project). <br /> 5) CMDC representative works closely with SBC to gather list of information <br /> needed to prepare 504 loan application. <br /> 6) CMDC distributes completed loan application to bank(s). <br /> 7) Once a formal commitment letter is issued by the bank, the loan application is <br /> presented to the CMDC Board of Directors for approval (CMDC's function is <br /> to prescreen loans for the SBA). The CMDC Board meetings are scheduled <br /> on the second Tuesday of each month. <br /> Special meetings can be scheduled, if necessary, to accommodate the client. <br /> 8) The participating bank orders an as-built appraisal of the real estate, to include <br /> any remodelling, improvements, or new construction for the project. (The loan <br /> application cannot be submitted to the SBA without this document.) <br /> 9) Assuming that the CMDC Board votes to approve the project, the loan <br /> application is submitted to the SBA. <br /> 10) The SBA Finance Division reviews the loan application. Depending upon work <br /> volume, this review process generally takes 15 - 20 working days. <br /> 11) SBA loan officer calls CMDC to grant verbal approval to the project. <br /> -1- <br />