YOUR SBA 504 LOAN
When you obtained an SBA 504 loan, we made a commitment to service your loan through maturity or prepayment. Our goal is to provide excellent customer service and be your main point of contact for any loan questions you may have.
If you want to change the account that is debited for your monthly payment, submit a new ACH (Automated Clearing House) Authorization form and voided check to our office. The form and voided check must be received prior to the 13th of the month to take effect the following month. Please keep in mind that your account can only be debited the exact payment amount listed on your amortization schedule on the due date. The account cannot be debited on any other day of the month.
Please mail, fax or email the completed ACH form. Please do not forget to include a voided check.
Important: Sometimes the automatic payment is rejected. Reasons include insufficient funds, the account is closed and/or invalid, or a borrower stops the automatic payment on their own. When this occurs, please do the following:
- Contact us immediately
- Confirm that the loan remains on automatic debit (ACH). If it is not, submit a new ACH form prior to the 13th of the month for enrollment.
Prepayment of SBA 504 loans are extremely time-sensitive. If you are interested in paying off your loan, please notify us immediately so we can provide an estimate and explain the prepayment process. The following are some things to keep in mind regarding prepayment of your loan:
- Prepayments on SBA 504 loans occurs on a monthly basis.
- Prepayment estimates are not available the first 3 business days of the month due to the processing of regular monthly payments.
- The final payoff amount is not available until the 6th business day of the month.
- Funds are due no later than the 3rd Thursday of the month.
- The payoff amount includes principal, interest, and most of the servicing fees through your next semi-annual date. To avoid these costs, the optimal time to pay off the loan would be the third Thursday prior to your semi-annual month.
- Prepayment penalties are assessed on loans that have not reached their half-life.
Note: The prepayment process, along with your semi-annual dates, is described in detail in your Note, Authorization, and Prepayment Schedule that was provided to you after closing.
LOAN INTEREST PAID
We send out year-end statements no later than January 31st to all borrowers that have paid interest. If you are an individual or sole proprietor, Wells Fargo will send a 1098 directly to you. If you have not received these statements, please notify us immediately so we can update your current contact information. Should you need another copy of your interest paid, please contact us.
We are required to keep current financial and insurance information on all SBA 504 loans. Please submit these documents to us as they are made available.
We must have the most current financial information for both the Operating Company and Eligible Passive Company (if applicable). We can accept either of the following documents:
- Tax returns
- Profit & Loss Statement and Balance Sheet
We must have a current copy of hazard/liability and life insurance at all times. Please ensure that the following verbiage appears on you proof-of-insurance certificate:
- Full Replacement Cost
- Caprock Business Finance Corporation/US Small Business Administration listed as 2nd Mortgagee and
- Loss Payee
- Property Address, Policy number, and expiration date
- Life Insurance:
- Death benefit equal to or greater than total loan amount
- Caprock Business Finance Corporation/US Small Business Administration listed as assignee
- If term policy, no less than the term of the loan
- Life Insurance:
Please submit them by one of the following:
Caprock Business Finance Corporation
Attn: Naomi Couture
PO Box 3730
Lubbock, TX 79452