Basic Application Materials include: * 3 years financial statement and federal tax returns on the company
. (if in existence.for 3 years) * 2-3 years of financial projects * Interim financial statement dated within the last 60 days * Personal financial statement on the owners of the company * Personal history statement of principals * History of the business, reasons for loan request * Business debt schedule * Legal entity documents
Two-Stage Process: There are two distinct stages involved with securing funding under the SBA 504 loan
program. An "application" (the basis of the information package) and a "funding" (a 504
funding) occurs when a project is complete and final costs are all disbursed. This requires
a partner bank lender to provide a short-term bridge or construction loan equivalent in
value to the SBA 504 loan while documents are prepared and submitted to the bond
market in New York for the actual SBA 504 loan funding.
The funding of an SBA 504 loan is subject to satisfactory compliance with the terms and
conditions set forth in a commitment document known as an SBA Authorization and
Debenture Guarantee.
Approval: Borrower applies to DBFC for the SBA 504 loan. Once DBFC approves the project,
DBFC submits your application to the SBA for its approval. Upon approval and loan
closing, DBFC issues a 10 or 20 year debenture bond that is sold to investors on Wall
Street giving the borrower access to capital at low, fixed interest rates. The SBA
guarantees timely repayment to the bond holder and is fully guaranteed by the U.S.
Treasury. No approval is final until the SBA has issued a signed SBA Authorization and
Debenture Guaranty, SBA Form 1248, and approved all required environmental and
appraisal reports in writing.
DBFC works closely with the borrower to process, approve, close and service the
SBA504 loan. DBFC looks forward to working with you to meet your current financing
objectives. DBFC is professionally managed by Southern Dallas Development
Corporation (SDDC).
Small Business Criteria As defined by the US SBA: Net worth less than $6 million; annual income less than $2
million; for-profit proprietorship, partnership or corporation. Borrower must demonstrate
good character, management expertise, commitment for a successful operation and a
detailed business plan that shows reasonable assurance that the loan can/will be repaid.
