Payments & Statements

Your monthly 504 loan payment is automatically deducted from your bank account on the first business day of each month via an ACH debit, as required by the loan agreement. Computershare Corporate Trust Services has acquired Wells Fargo Corporate Trust Services and handles this process. You can’t change the payment date, but you can change the bank account by contacting our Servicing Department and submitting a new ACH Debit Authorization form by the 15th of the month.

If a payment is rejected, Wells Fargo will not attempt to process it again. You must send the payment via a wire transfer to our Servicing Department. A late fee, which is the greater of 5% of your payment or $100, will apply if the payment is not processed by the 15th of the month.

You will not receive monthly statements; instead, please refer to the amortization schedule provided to you after closing. This schedule outlines the allocation of each payment to principal, interest, and fees. You can request a new copy from our Servicing Department at any time. The servicing fees on your schedule cover the SBA, Computershare Corporate Trust Services (the Central Servicing Agent or CSA), and your CDC (Community Capital Development Corp). An annual interest statement will be mailed to you as soon as they are released by the SBA.

The SBA has incorporated 504 borrowers into the “MySBA Loan Portal” where you can now view your 504 balances and obtain some tax documents online. If you are interested, you can register at https://lending.sba.gov/

Loan Changes

If you need to make changes to your loan, such as a change in business structure (LLC, Sub-S Corp, etc.) or substituting collateral, our Servicing Department can assist you.

You can refinance your first mortgage loan. However, the new lender will likely require a subordination agreement from us. Therefore, please contact our Servicing Department to coordinate this.

You cannot make additional payments to pay down the principal of your 504 loan. If you’re considering an early payoff, be aware that a prepayment penalty applies for a portion of the loan’s term (typically the first 10 years for a 20-year loan). The penalty amount declines annually. While you can pay off the loan early, it’s often more beneficial to make additional payments on your first mortgage loan, as its interest rate is typically higher. Each SBA 504 loan prepayment date is set on the third Thursday of the month. The debenture that provided the funds for the 504 loan has semi-annual payment dates. Although you can prepay the loan in any month, the payoff amount must include all monthly payments, minus the CDC fee, up to and including the payment due on the bond payment date. Prepayments can only be made by wire and must be scheduled in advance.

If you want to expand your business, you may be eligible for an additional SBA loan. The application process is generally easier the second time around. Contact a Loan Officer to discuss your options.

Insurance & Compliance

To ensure your loan remains in good standing, you have annual reporting requirements, including providing your annual business tax returns or signed financial statements. After your loan’s two-year anniversary, you will also need to report your current employee count. We may conduct site visits to inspect and verify the collateral, which is a requirement of the SBA.

Please notify us if you change insurance providers and provide the new contact information and policy details. If your business experiences a disaster such as a fire or flood, contact our Servicing Department immediately to coordinate with your insurance provider. If you decide to sell your business, you must also contact us, as this has direct implications for your loan.