At Minnesota Business Finance, it’s business as usual – we’re hard at work for our customers getting applications approved at our loan committee level and ready for SBA submission just as soon as SBA reopens.
In the meantime, if lead lenders are needing to close on a project and don’t have SBA 504 approval there are things that can be done:
- A lead lender is allowed to close ahead of SBA 504 approval at their own risk as long as they put in place short-term interim financing.
- If a lead lender is wanting to alleviate added risk, the lender can take additional down payment or collateral during the interim financing phase and then release upon SBA 504 pay down.
With these practices, it allows the projects to close but leaves the door open to obtain the long term fixed rate financing that the borrower desires!
MBFC’s SBA 504 Interest Rate Link HERE
We are on track for SBA 504 loans that were closed in December in which the SBA funding occurs February 13th as long as there weren’t any pending changes on the loan that weren’t approved by SBA prior to the Government shutdown.
MBFC is moving forward closing loans in January in which the SBA funding is scheduled for March 13th, however it is unknown at this time if funding will stay on track for March 13th. More will be learned in the coming weeks.
If you have any further questions on this topic,
your MBFC Loan Officer would be happy to help!