Knowing What’s Required

Being familiar with the closing requirements of a CTCIC 504 Loan will help pave the way for a smooth CTCIC 504 Loan closing and funding.

Financials
CTCIC requires interim financial statements dated within 120 days of the CTCIC closing, which include: a Profit and Loss Statement, Balance Sheet, and Accounts Receivables and Payables Aging Statements. In addition, CTCIC will require the most recent tax returns for the Operating Company and all guarantors if not previously available.

Insurance
All required insurances, outlined in the Authorization for Debenture Guarantee, must be obtained and presented at closing with the following clause:

CTCIC and/or US Small Business Administration
2315 Whitney Avenue, Suite 2B
Hamden, CT 06518 ISAOA ATIMA

Life Insurance
DELAY ALERT – When an Assignment of Life Insurance is required, the Assignment must be acknowledged by the main office of the insurance company and a copy of the entire life insurance policy must be obtained and submitted with the fully executed assignment at the CTCIC closing. This requires sufficient lead time for the insurance company to process and complete the Assignment request before closing. Download CTCIC’s Life Insurance Assignment Form; however, most life insurance companies use their own form, which is acceptable.

Borrower’s Equity Injection
CTCIC must prove the borrower’s required equity injection.

• If the equity was/is from personal liquidity, three months of personal bank statements will be required.
• If the equity injection was part of the land purchase transaction, a signed and certified copy of the closing statement will be required.
• If the equity injection paid project costs, copies of invoice(s) and the coordinating cancelled check(s) will be required.