Easy for your business to grow into its own building.
Easy for banks by minimizing paperwork and helping you make more loans.
  • Step 1 - First Meeting

    First Meeting

    Bringing people together so we are all on the same page. The business’s owners, the bank and CP504 talk candidly so we all understand your business growth plan and how the 504 loan can get you there. Details always help, so gather together as many documents as you can to bring to the meeting.

    Basic documents could include:

    • Documents relating to project costs, purchase agreements, estimates for new construction, renovations, machinery and equipment.
    • A history of the business, product descriptions and product literature – or you can direct us to your company website if appropriate.
    • Company financial statements for the last three years, and a current interim statement. If the company has affiliate companies we will also want their statements too.
    • Personal financial statements for everyone with 20% or greater ownership in the business.
    • Personal identification documents – such as a driver’s license.
    • A list of all the documents we will need for submiting an application can be found here.
  • Step 2 - Preperation of the Loan Application

    Preparation of the Loan Application

    Basic documents could include:

    • Working with you, or your representative, and your bank, CP 504 will prepare the application for the SBA. The more information we have up front, the easier and faster the process will be.
    • How Long – once we have all the necessary information it takes about 5 working days to process your application. It is then presented to our internal loan committee for review and with their approval it is forwarded electronically to SBA for final approval and the SBA loan authorization. The loan authorization is the ‘instruction manual’ for funding the loan.
  • Step 3 - Interim Financing

    Interim Financing

    Basic documents could include:

    • Once the SBA has approved the loan, your financial institution will provide interim financing for the purchase of your land, your building and/or equipment including the costs of new construction if necessary. They will finance up to 90% of the total project costs.
    • Working only with your lender through this phase simplifies everything for you as a business owner. CP 504 will be working with you and your lender at the same time to make sure we have all the information for the SBA closing package.
    • Once you are in your new building or have installed your new equipment/machinery we will be ready to move forward with the SBA 504 Loan Closing and Funding.
  • Step 4 - SBA Loan Closing

    SBA 504 Loan Closing

    • Now you are in your new building or the purchase of assets is complete, CP 504 will meet with you to finalize the closing documentation and fund the SBA portion of the loan. Still working closely with you and your lender to make the process simple, CP 504 assembles the final package for legal review and your loan is sent to SBA for funding.
    • Once the SBA funds are in place you will have a mortgage loan with your lender, approximately 50% of the total project; and a second mortgage with CP 504/SBA for around 40% of the total costs with an interest rate on the SBA 504 portion that is fixed for the life of the loan.