What is The Lender’s Role?

Simple: make a conventional loan that meets SBA’s term requirements (10 years for real estate and 7 years for equipment). We collect required financial statements and other documents required for underwriting a loan from either the bank or the borrower but keep the bank in the loop through our underwriting process. The bank uses their standard loan documents without having to worry about completing all the SBA forms.

RLDC will deliver a commitment from SBA for take-out financing. Generally the lender provides the “interim” or “bridge” financing and manages the project through its construction phase. The SBA 504 loan is permanent financing that closes when the project is complete. During the construction or renovation phase, the lender provides up to 90% financing based on the SBA commitment.

The bank orders the appraisals and required environmental reports naming all parties as intended users and provides copies to RLDC upon completion.

When the project is complete and the 504 loan is ready to close, RLDC will supply the lender with required loan documents as outlined in SBA’s commitment letter (“Authorization for Debenture Guarantee”). Throughout the process, RLDC staff is available to assist and guide the lender through the process to ensure a smooth closing once the project is complete.