The SBA fee covers any losses SBA incurs as guarantor of the 504 Loan.

The CSA is Wells Fargo Corporate Trust Services. This fee covers Wells Fargo’s handling of payment processing and loan accounting.

The CDC is Growth Corp. We are responsible for servicing your loan on behalf of SBA. The CDC fee is set forth in the Code of Federal Regulations and cannot be waived.

In the funding packet provided after funding, you will find an amortization schedule. This schedule indicates how much of your loan’s principle, interest and fees are paid off with each loan payment. You can always call our Servicing Department at 217-241-3000 if you have questions about your balance.

An annual Interest Statement will be mailed to you by January 31st of each year.

Yes. You’ll simply fill out a new “ACH Debit Authorization” form.  Please call our Servicing Department and we will send it to you. Account changes must be made by the 15th of the month to take effect in time for the next month’s payment.  If the 15th falls on a weekend, it must be received before the end of the prior business day.

Yes. Please send us the contact information for the new agency, including the new policy number.

Yes. Growth Corp’s Servicing Department can help you:
• Substitute equal or greater equity in like kinds of collateral.
• Subordinate to new third party financing.
• Make changes to life or hazard insurance.
• Release insurance proceeds for the repair or replacement of damaged collateral.
• Approve changes in form of business structure (i.e. LLC, LLP, Sub-S Corp, etc…)
• Assumption of the loan by a third party
• Substitution of or release of guarantors.

Yes and yes.  However, typically the rate on your first mortgage loan is adjustable and higher than the 504 rate, so it’s to your advantage to make additional payments on the first mortgage loan rather than pay off the 504 loan.

If you choose to pay off your 504 loan early, the duration of the prepayment penalty depends on the term of the loan. Typically, 504 loans are 20-year loans, which carry a 10-year prepayment penalty. The amount of the penalty depends on the debenture rate assigned to your loan. For instance, if the debenture rate was 2.5%, it would decline 10% every year for ten years. After 10 years there would no longer be a prepayment penalty.

In addition to the prepayment penalty, interest and servicing fees (not the CDC servicing fee), through the next semi-annual debenture date are included in the payoff.  The debenture dates are based on the funding date of your loan.  Our Servicing Department can walk you through the details.

Unfortunately no. Due to the funding structure of 504 loans, additional payments cannot be accepted.