Sba pclp
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(8) The authority to approve the refinancing of same institution debt must be approved by SBA and is not delegated to the PCLP CDCs. For purposes of this paragraph, “better terms or rate of interest” may include longer maturity (but always commensurate with the assets' useful life), a lower interest rate committed on the Third Party Lender Loan or projected on the 504 loan, improved collateral conditions, or less restrictive loan covenants. (7) The financing under section 504 will provide better terms or rate of interest than the existing indebtedness on the date of refinancing. Any unremedied delinquency after approval must be reported to SBA as an adverse change For purposes of this section, “date of refinancing” refers to the date the 504 loan is approved by SBA. (6) The borrower has been current on all payments due on the existing debt for not less than 1 year preceding the date of refinancing.
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PCLP CDCs may not use their delegated authority to approve a loan requiring this exception Exceptions to the 10% reduction requirement may be approved by the D/FA or designee for good cause. Prepayment penalties, financing fees, and other financing costs must also be added to the amount being refinanced in calculating the percentage reduction in the new installment payment. For purposes of this paragraph, “substantial benefit” means that the portion of the new installment amount attributable to the debt being refinanced must be at least 10 percent less than the existing installment amount(s). (5) The financing will provide a substantial benefit to the borrower when prepayment penalties, financing fees, and other financing costs are accounted for. (4) The financing will be used only for refinancing existing indebtedness or costs relating to the project financed Existing 7(a) and 504 loans may be refinanced under this section in accordance with SBA policies or procedures (3) The existing indebtedness was incurred for the benefit of the small business concern for which any new Project costs are incurred. PCLP CDCs may not use their delegated authority to approve a loan requiring this waiver The 504 eligible fixed assets collateralizing any debt to be refinanced or relating to the portion of debt being refinanced in the case of a partial refinance must also collateralize the 504 Loan unless SBA approves a waiver due to extraordinary circumstances. (2) The existing indebtedness is collateralized by fixed assets. If the acquisition, construction or purchase of the asset was originally financed through a commercial loan that would have satisfied the “substantially all” requirement and that was subsequently refinanced one or more times, with the current commercial loan being the most recent refinancing, the current commercial loan will be deemed to satisfy this paragraph (e)(1). The assets acquired must be eligible for financing under the 504 loan program. (1) Substantially all (85% or more) of the proceeds of the indebtedness were used to acquire land, including a building situated thereon, to construct a building thereon, or to purchase equipment. (e) If the project involves expansion of a small business concern, any amount of existing indebtedness that does not exceed 100 percent of the project cost of the expansion may be refinanced and added to the expansion cost if: (d) Repayment of interim financing including points, fees and interest.
SBA PCLP PROFESSIONAL
(c) Professional fees directly attributable and essential to the Project, such as title insurance, opinion of title, architectural and engineering costs, appraisals, environmental studies, and legal fees related to zoning, permits, or platting and (b) In Projects involving construction, a contingency reserve for cost overruns not to exceed 10 percent of construction cost
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(a) Costs directly attributable to the Project including expenditures incurred by the Borrower (with its own funds or from a loan) to acquire land used in the Project, or for any other expense directly attributable to the Project, prior to applying to SBA for the 504 loan § 120.882 Eligible Project costs for 504 loans.Įligible Project costs which may be paid with the proceeds of 504 loans are: