Loan Closing
FAQs
For your convenience, we've put together a comprehensive FAQ on loan closing to help answer your questions and guide you through the process.
If you're unsure of your TMC Closing contact, call 888-989-8855 to connect with your loan team.
SBA loan documents are signed at Escrow, typically with the Lender's documents. For projects that include construction costs, documents are signed after the construction is complete.
Yes, there are. While SBA processing fees are included in the debenture, you’re responsible for escrow and title fees.
Debenture: A debenture is a type of bond issued by a Certified Development Company (CDC) to finance an SBA 504 loan. It represents the portion of the loan funded through the SBA program.
Funding requirements are outlined in the SBA Terms & Conditions document. All documents are reviewed by a CDC Closing Attorney before funding. Need a copy? Contact your Closing Officer.
SBA Terms & Conditions: This document is a written agreement between the SBA, CDC and the Borrower providing the terms and conditions under which SBA will guarantee a debenture. This includes insurance requirements, occupancy standards, funding conditions, and other closing and post-closing obligations.
SBA requires proof that your business is occupying and operating from the location. This can include a business permit, license, or a third-party site visit.
Refer to Section E of your Terms & Conditions for specific requirements, which may include:
- Real Estate Hazard Insurance
- Personal Property Hazard Insurance
- Life Insurance
- Flood Insurance
- Workers Compensation Insurance
Real Estate Hazard Insurance: This insurance protects the financed property against damages caused by hazards such as fire, storms, or vandalism. It must meet SBA requirements and list the lender and CDC as additional insured parties.
Personal Property Hazard Insurance: Insurance coverage for business assets such as machinery, equipment, or furniture. It must meet SBA requirements and list the lender and CDC as additional insured parties.
Life Insurance: Life Insurance if often required on sole owners of the business. The policy should name the lender and/or CDC as the beneficiary.
Flood Insurance: If the financed property is located in a designated flood zone, flood insurance is required to protect against damages caused by flooding.
Your rate is based on the market rate of the debenture when your loan funds (once a month). The rate is fixed for the loan term. After funding, the Servicing Department will provide your rate, monthly payment, and Amortization Schedule.
Contact The TMC Servicing Department at servicinginfo@tmcfinancing.com
Payments are due on the 1st of the month following loan funding. Payments must be made via automatic debit from your preferred bank account.
- SBA must approve deed and use restrictions before closing. The approval process and timeline are outside CDC’s control, and additional documentation may be required.
- Verify your proposed use complies with applicable zoning, CC&Rs and SBA requirements.
- Provide a list of Furniture, Fixtures, and Equipment if included in project costs.
- Address Franchise Agreement issues promptly.
FAQs for Construction Projects
Review the construction provisions in your SBA Terms & Conditions. Key points:
- Notify TMC when construction is complete or if costs change.
- Provide invoices and evidence of payment for all costs.
- Clear all mechanics' liens and file a Notice of Completion.
- Certificate of Occupancy (if applicable)
- Submit updated financial statements before signing documents.
Your lender tracks project progress. TMC will periodically check in with the lender for updates. Notify both parties of any cost changes.