How We Work With You

How can banks participate in the SBA 504 Loan Program?

Participating lenders include banks, savings and loans, and credit unions interested in partnering with BFC are required to execute a third-party lender certification as part of the loan closings.

Both the bank and BFC will underwrite the loan concurrently to meet borrower deadlines. While the terms and conditions of the bank and BFC loan may differ, they are coordinated to meet the needs of the borrower.

What are the benefits for the lenders?

The 504 loan program helps open a new market to banks by adding a healthy, growing, business client base that may not meet conventional underwriting criteria. A bank’s first mortgage on the loan is 50 percent loan to value, minimizing collateral risk and exposure. In some circumstances, 504 loans used for owner occupied real estate are not counted in commercial real estate concentrations.

The lenders’ first lien loans are salable on the secondary market, providing lenders greater liquidity. Finally, by making 504 loans, banks may qualify for Community Reinvestment Act consideration.

Debenture Funding Calendar for 2015

2015 SBA-504 Pricing Dates 2015 SBA-504 Funding Dates
January 8th January 14th**
February 5th February 11th
March 5th March 11th**
April 9th April 15th
May 7th May 13th**
June 11th June 17th
July 9th July 15th**
August 6th August 12th
September 10th September 16th**
October 8th October 14th
November 5th November 10th**
December 10th December 16th

**These dates include the sale of both the 10-year and 20-year debentures