In a rising rate environment, the fixed rate character of the SBA 504 loan is becoming a more popular option among borrowers. That being said, the high cost of an SBA Closing Attorney can certainly be an impediment to funding smaller debentures (those less than $500,000).
From an economic development standpoint the SBA 504 program provides Borrower’s with the opportunity to stabilize a large percentage of their operating expense. However, in some jurisdictions high funding/closing costs cause some 504 professionals to actually recommend alternative loan programs. In other words turn away interested Borrower’s.
We have been fortunate enough to work with a number of Certified Development Company’s (CDC’s) that fully understand the benefit of embracing small businesses that often become large businesses. Below you will see that how combining a proper CDC philosophy and choosing the right Closing Attorney can make a huge difference.
Net Debenture: $100,000.00
Item Another Texas Attorney Bolt Law Group
Funding Fee (.25%) $250.00 $250.00
CDC Processing Fee (1.5%) $1,500.00 $1,500.00
CDC Closing Fee $2,500.00 $2,000.00
Other Out of Pocket $1,000.00 $0.00
Sub-Total $5,250.00 $3,750.00
Underwriters Fee $424.00 $416.00
Gross Debenture $106,000.00 $105,00.00
Balance to Borrower $326.00 $834.00
Attorney Closing Fee $3,500.00 $1,750.00
Total Closing Costs $9,174.00 $5,916.00
Instead of turning away another Borrower, your CDC just earned $3,500.00 in fee income. When choosing Bolt Law Group, the Borrower is saving $3,766.00 or 3.77%, which does not include the beginning principal balance being $1,000.00 lower. Of the Borrower savings, Bolt Law Group contributes $1,750.00.
Our CDC clients have been able to make this fee scenario work because of the extensive work included as part of the much lower Bolt Law Group Attorney Closing Flat Fee. Stop turning away Borrowers; the professionals at Bolt Law Group can help you expand your client and revenue base.
Expect the best and find out what more than 130 SBA 504 borrowers, since January 2014, already know. Lower fees do not require fewer services.
Contact me today to better understand how Bolt Law Group can help you reach more clients (Curtis@boltlawgroup.com or 714-595-1696).
From an economic development standpoint the SBA 504 program provides Borrower’s with the opportunity to stabilize a large percentage of their operating expense. However, in some jurisdictions high funding/closing costs cause some 504 professionals to actually recommend alternative loan programs. In other words turn away interested Borrower’s.
We have been fortunate enough to work with a number of Certified Development Company’s (CDC’s) that fully understand the benefit of embracing small businesses that often become large businesses. Below you will see that how combining a proper CDC philosophy and choosing the right Closing Attorney can make a huge difference.
Net Debenture: $100,000.00
Item Another Texas Attorney Bolt Law Group
Funding Fee (.25%) $250.00 $250.00
CDC Processing Fee (1.5%) $1,500.00 $1,500.00
CDC Closing Fee $2,500.00 $2,000.00
Other Out of Pocket $1,000.00 $0.00
Sub-Total $5,250.00 $3,750.00
Underwriters Fee $424.00 $416.00
Gross Debenture $106,000.00 $105,00.00
Balance to Borrower $326.00 $834.00
Attorney Closing Fee $3,500.00 $1,750.00
Total Closing Costs $9,174.00 $5,916.00
Instead of turning away another Borrower, your CDC just earned $3,500.00 in fee income. When choosing Bolt Law Group, the Borrower is saving $3,766.00 or 3.77%, which does not include the beginning principal balance being $1,000.00 lower. Of the Borrower savings, Bolt Law Group contributes $1,750.00.
Our CDC clients have been able to make this fee scenario work because of the extensive work included as part of the much lower Bolt Law Group Attorney Closing Flat Fee. Stop turning away Borrowers; the professionals at Bolt Law Group can help you expand your client and revenue base.
Expect the best and find out what more than 130 SBA 504 borrowers, since January 2014, already know. Lower fees do not require fewer services.
Contact me today to better understand how Bolt Law Group can help you reach more clients (Curtis@boltlawgroup.com or 714-595-1696).
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