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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 2020

SBA Due DateDebenture Pricing DateFunding Date
12/11/201901/09/202001/15/2020
01/08/202002/06/202002/12/2020
02/05/202003/05/202003/11/2020
03/12/202004/09/202004/15/2020
04/09/202005/07/202005/13/2020
05/13/202006/11/202006/17/2020
06/11/202007/09/202007/15/2020
07/09/202008/06/202008/12/2020
08/13/202009/10/202009/16/2020
09/10/202010/08/202010/14/2020
10/07/202011/05/202011/10/2020
11/10/202012/10/202012/16/2020

 

What is a Debenture?

 

Dated: October 01, 2019

*These months include sale of both 10 and 20 year debentures.