FAQ – How Do I
How do I change the account from which my payments are deducted?
- Complete a new Authorization Agreement (click here for the document) and fax or e-mail to BFG by the 13th of the month prior to the change. Forms received AFTER the 13th will not become effective until the first of the month following. For example, if a form is received on Jan. 13th, the change will be effective with the Feb. 1st payment. If it is received on Jan. 15th, the change will be effective with the March 1st payment.
- Email the form to firstname.lastname@example.org or fax to 703-352-9100
- Sign and date the form and attach a voided check for the new account.
How do I change my contact information?
In order to change your contact information, please email us or call 800-305-0504.
How can I find out my loan balance?
Check the loan amortization schedule provided after closing or contact us at email@example.com
How can I find out how much interest was paid on my loan last year?
- You can check your amortization schedule provided after closing
- An IRS Form 1098 will be mailed to you on Jan. 31st
- Contact us
Can my loan be paid off early?
- Your 504 loan can be assumed by a qualified buyer so that you avoid any prepayment premium
- Due to the funding via bonds, the payoff process is different than a typical bank loan.
- You must give us 45 days notice of your intent to prepay
- 504 loans can only be prepaid on the 3rd Thursday of every month
- All payoffs must be made by wire transfer
- Prepayment premiums may apply. A prepayment premium schedule was provided to you after closing. Contact us for more information.
- The timing of the prepayment is critical, PLEASE CONTACT US RIGHT AWAY IF YOU ARE CONSIDERING PREPAYING YOUR LOAN!
Can the first trust loan be refinanced without pre-paying the 504 loan?
- The choice of first trust lenders rests with the borrower. With no cash out (except reasonable closing costs), BFG can internally approve the subordination to a new lender leaving the 504 loan intact. There are no charges to you for this service.
Can I renovate or expand my facility later?
- BFG would be pleased to consider an additional 504 loan for renovations or expansion. You can receive 504 loans up to the $5 million maximum outstanding to any one borrower (except small manufacturers or energy efficient projects that can receive up to $5.5 million per project).
- If you and your first trust decide not to seek another 504 loan, BFG will subordinate up to 90% of the new costs.
Can the terms of the 504 loan be modified?
- Due to the funding via bonds and the advantageous market rates available through the 504 program, the loan terms are established at funding and remain in place throughout the life of the loan.
What is required under my loan documents?
- Hazard insurance must be maintained for the full insurable value on a replacement cost basis
- Business Finance Group and SBA named as “Mortgagee” on the policy
- Liability and workmen’s compensation insurance must also be maintained
- Your agent should provide us with a new certificate annually
- Real Estate Taxes:
- Please check with your local taxing authority to see when your real estate taxes are due. No escrow for taxes have been included, and you are responsible for paying the taxes.
- Financial Statements:
- Please submit your business financial statements and/or tax returns no later than 4 months after your year end. If your financial information is not available in the required time frame, please contact us.
- Job reporting:
- At the 2 year anniversary of your loan funding, Business Finance Group will request current information on the number of employees at your company.