Getting Started

The time varies depending on loan volume at SBA and Capital CDC. Please contact your regional Loan Officer for a more accurate timeframe.

The rate locks-in at funding. (All 504 loans have fixed interest rates that are set the week before the 504 loan is funded, after the project is complete.)

Capital CDC will begin processing your loan application upon the submission of a complete application package and a refundable Good Faith Deposit (equal to 1% of your SBA 504 loan or $2,500, whichever is less).

Most for-profit, owner-occupied businesses in the U.S. that fit SBA’s definition of “small” are eligible for SBA financing. Certain types of businesses are ineligible including non-profits, businesses engaged primarily in lending, businesses engaged primarily in real estate investment or oilfield development, and businesses producing or selling “adult”-oriented entertainment. Contact your regional Loan Officer for more information.

The bank funds first. The SBA 504 debenture will take out the bank’s 2nd lien portion 60 – 90 days post-closing if there is no construction and 60 – 90 days after completion if there is construction.

A complete set of loan documents is emailed to all Capital CDC borrowers upon funding of the SBA 504 loan. If duplicates are required, or for any questions about the status of your existing 504 loan, please reach out to our Servicing team at any time at [email protected].

The amortization schedule provided to you at funding will indicate your current balance. If you do not have access to that document, please email our Servicing team at [email protected] and include your business name and loan number in the email.

The banks closing takes place prior to the CDC closing/funding and initiates the movement of funding for all purchases and construction. The CDC closes/funds after all purchases (real estate and equipment) and/or construction are 100% finalized. The 504 loan has a built-in reimbursement to the borrower for the CDC closing costs. The reimbursements to the borrower will be sent 30-45 days after the CDC closing.

By working closely with your Closing Officer and Closing Attorney, you can minimize delays and expedite any necessary changes required after the loan was approved by SBA. Providing any documents requested in their checklists and regularly checking in with your bank is important to a smooth closing/funding process. Some of the requested documents will be duplicates of what was provided during loan underwriting. However, due to document expiration dates, current and updated versions are needed.

Borrower's Injection is the Borrower’s down payment for the 504 project, as defined in the loan Authorization. This amount must be paid by the borrower and contributed into the SBA 504 project. Prior to closing, the required contribution or “injection” is fully documented with dated invoices and payments. Use of Proceeds is evidence of how the bank funds were utilized to purchase real estate, equipment or complete all construction as defined in the SBA loan Authorization. This significant detail is provided by the bank primarily and is a critical part of every loan closing.

Yes, you will have access to a specialized SBA designated Closing Attorney. Our attorneys can help to answer questions regarding the SBA 504 loan closing and funding process. They will also provide all necessary legal documentation required for SBA funding.

The loan Authorization can be amended and changed to match the changes taking place within your particular project (i.e. construction or equipment cost changes, purchasing a different property, adding equipment, or change of entity ownership and loan guarantors). These changes are formalized between the Closing Officer and SBA and are subject to SBA approval. Having multiple changes may create a delay the closing of your project.