We are delighted you have chosen to work with Business Finance Group. The funding of your loan is just the beginning of an ongoing long-term relationship and we look forward to being your partner! We are dedicated to providing you with the very best in customer service and are here to help with all your servicing needs.

Please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. if you have any questions.

Business Finance Group
also serves Lenders
and Small Business Owners

Closing FAQs

When is a commercial mortgage considered eligible for refinancing under the new rules?
    • The loan must have been funded at least 6 months ago
    • 75% of the loan proceeds must have been used to acquire real estate or equipment
    • The property must be at least 51% owner-occupied
    • The loan CAN be a federally guaranteed loan (an SBA 7a, 504, first trust to a 504, or a USDA loan)
What are the requirements to fund my SBA loan?

The SBA Loan Authorization outlines the requirements for funding your loan. All documents requested by the CDC must be received and reviewed by the CDC’s closing attorney.

Once it has been determined that all the SBA requirements are met, BFG can submit your loan for funding.

Why do I need to provide a business license and what if my city does not issue business licenses?

The SBA requires evidence that your business is legally able to operate in the location purchased through the 504 Loan Program. This may be a license from either the city or county, as applicable to your area and type of business.

What are the SBA requirements for insurance?

Borrowers must obtain adequate insurance coverage and maintain this coverage for the life of the Loan. Refer to section E.1 Insurance Requirements in your SBA Loan Authorization.

Common insurance requirements:

Real Estate Hazard Insurance coverage is required on all real estate that is collateral for the loan in the amount of the full replacement cost/insurable value referenced in the appraisal. If full replacement cost insurance is not available, coverage must be for maximum insurable value.

Personal Property Hazard Insurance coverage is required on all furniture, fixtures, and equipment that is collateral for the Loan in the amount of the full replacement cost/insurable value referenced in the appraisal. If full replacement cost insurance is not available, coverage must be for maximum insurable value.

Flood Insurance is required if any portion of the building that is collateral for the Loan is located in a special flood hazard area. If any furniture, fixtures, or equipment that is collateral for the loan (“personal property collateral”) is in a building any portion of which is located in a special flood hazard area, the borrower must obtain available flood insurance for the personal property collateral. Insurance coverage must be in amounts equal to the lesser of the insurable value of the property or the maximum limit of coverage available.

Life Insurance may be required by the SBA on key persons involved with ensuring the success of the company. Any amount of life insurance will be determined during the application process.

When/where will I sign my SBA loan documents?

The SBA 504 Program will involve two settlements. SBA documents are signed once the project being financed is complete. Once loan documents have been prepared, they are typically sent to the Title Company for your signature. The Title Agent will contact you to schedule closing.

Why do my loan documents not have an interest rate or payment information on the Note?

Because of the timing of the bond sale, your interest rate is not determined until the week of funding. Once that information is available, your Closing Officer will send you your rate and payment information.

What do the SBA loan fees consist of? Can I pay them upfront or do they have to be financed?

The 504 loan fees consist of the guarantee fee, funding fee, processing or packaging fee, closing costs, and the underwriter’s fee. To see a breakdown for your loan, refer to section B. Project Financing in the SBA Loan Authorization. These fees are also outlined in your BFG Application Assistance Agreement. The only fees that can be paid upfront are the processing fee and the Closing costs.

What are my options for the payment plans?

Payments are due on the first business day of the month by automatic debit from your preferred bank account. Your first auto-debit will occur on the first business day of the month after your loan funds from the account you provided at closing. SBA requires payment to be set up as auto-debit. There are no exceptions.

Construction projects: If I am financing improvements with loan proceeds, what are the requirements? What is the construction process and how does it work?

We will need your active assistance to complete the process once your project is near completion.

  • We will work with you and your bank partner to monitor the construction phase and finalize the 504 closing process once your project is complete.
  • Your conditions outlined in the SBA 504 Loan Authorization must be met.
  • Your construction lender must confirm that construction is complete and all funds have been disbursed so that we can verify the final project costs.
  • Notice of Completion must be filed. The timeliness of this filing is important because BFG must allow all mechanics liens to be cleared for your contractors or subcontractors.
  • You must provide BFG with updated financial information to verify that your financial condition has not changed substantially since the time that you applied for your SBA loan.
Construction projects: Who is monitoring the progress of my construction?

Your construction lender will be monitoring the progress of your project. BFG will also be tracking the status of construction, estimated completion date, and the status of fund disbursement to the contractors in cooperation with your construction lender.

Servicing FAQs

Can I obtain another SBA 504 loan?

Yes, you may be eligible for another SBA 504 loan. BFG has numerous clients who have received two or more SBA 504 loans to finance new locations and expansions for their growing businesses. Please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. to find out if you are eligible for additional SBA 504 loan financing.

When is my loan payment due?

Loan payments are due every month on the first business day. The account cannot be debited on any other day of the month. Late fees will be applied if the loan payment is received after the 15th of the month.

How are my loan payments made?

Loan payments are processed by automatic debit/ACH (Automatic Clearing House). In the closing process with BFG, you filled out an authorization form and provided a voided check indicating the account from which your loan payments will be automatically debited.

Can I change the account my loan payments are debited from?

Yes. A new ACH debit authorization form and a voided check are needed. Please email This email address is being protected from spambots. You need JavaScript enabled to view it. to receive a new ACH form. We must receive the new form and voided check by the 10th of the month for the new account to take effect the following month.

What is Wells Fargo Corporate Trust Services?

Wells Fargo Corporate Trust Services is the Central Servicing Agent (CSA) for all SBA 504 loans effective March 25, 2013. The CSA is responsible for processing loan payments and handling accounting for every SBA 504 loan nationwide.

Please note that Wells Fargo Corporate Trust Services does not provide any direct client services. All inquiries regarding your SBA loan should be directed to BFG and will be handled by our Servicing Department.

Can I pay off/prepay my loan early?

Yes. SBA 504 loans are funded differently than conventional bank loans and have unique payoff terms and requirements.

  • Full prepayments are only accepted on the 3rd Thursday of each month.
  • BFG must receive written notice 15 days in advance of the payoff date.
  • Payoff funds must be made via wire transfer.
  • Prepayment premiums may apply. There is a declining premium applied to prepayments that adjusts at six-month intervals. Once half of the term of your loan has passed, there are no prepayment premiums.

The prepayment process is highly structured. If you wish to pay off your outstanding balance and/or discuss the SBA 504 Loan prepayment process, contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. or by phone at 1-800-305-0504.

Is my loan assumable?

If you are selling your property, a qualified buyer may assume your loan after requisite SBA approval.

Why is the rate on my loan different than what was estimated during the loan process?

The rate on the loan is determined approximately one week prior to the date the loan is funded and is based on current market conditions which can fluctuate. Typically they follow the trends of Treasury rates. The loan is pooled with all of the other 504 loans funded in the same month and sold in the form of debentures.

Can I refinance my first trust deed loan without prepaying my SBA loan?

Generally, your first trust deed loan from a bank or other lender has a higher interest rate than the SBA 504 loan. If you decide to refinance this first mortgage, BFG will subordinate your SBA loan to a straight refinance of your first trust deed loan. Cash-out may be allowed if the proceeds are used for building improvements.

Does my loan payment cover the property taxes for my property?

No. SBA 504 Loan payments only cover the principal, interest, and fees of the loan. It is the borrower’s responsibility to pay property taxes. BFG does monitor each loan to ensure they are paid annually. If you have any questions regarding property taxes, please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it..

Can I refinance my first mortgage?

The two loans involved with the SBA 504 project are now totally separate and you do not need our approval to refinance the first mortgage. However, the new lender will probably make their financing contingent upon receiving a Subordination from the SBA. If you plan on refinancing the first mortgage, please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it..

What if I’m having trouble making my payments?

If your business has been struggling and you need to discuss it with us, please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it..

What is my loan balance?

You can check your current loan balance at any time by referencing the Authorization Schedule we provide to you after your loan is funded. To request another copy of the Amortization Schedule please send an email to This email address is being protected from spambots. You need JavaScript enabled to view it..

Note: The loan balance is not the same as the loan payoff amount.

How can I update my mailing address or other contact information?

Please send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. and include your phone/fax numbers, email address, and website address.

Why do you ask for financial statements every year?

Submitting annual financial statements and/or tax returns is part of your commitment to BFG for your SBA loan. We will send you a request for updated financials on an annual basis and ask that you submit them no later than three months after your fiscal year-end.

You may submit updated financials by one of the following:

  • E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
  • Secure file transfer site: https://businessfinancegroup.sharefile.com/filedrop Select “Servicing-Taxes, Financials & Insurance” from the recipient drop-down menu
  • Recipient: Business Finance Group, 3930 Pender Drive, Suite 300, Fairfax, VA 22030 Attention: Servicing Department

HEAR FROM OUR VALUED PARTNERS AND CLIENTS

"Business Finance Group has been instrumental in our growth here at Belmont Peanuts. Our experience with the team was such a success that we secured their help once again for our second business expansion. The professionalism and resources that are offered by BFG are second to none. They will keep you on track, always making sure all documents are provided and your closing will be on time and successful. If you are on the fence in your decision for a 504 lender, I guarantee you will not be disappointed by choosing Business Finance Group."

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