Third Party Lender permanent first position loan terms and rates (including points and fees as applicable) are set by the Third Party Lender with a few simple limitations:
SBA charges 0.5% of the Third Party Lender permanent loan as a Participation Fee. The Third Party Lender should consider that fee when pricing the permanent loan. The Participation Fee is payable at the CTCIC 504 closing.
Third Party Lender will be required to execute and deliver a Third Party Lender Agreement and a Third Party Lender Certification for the CTCIC 504 Loan closing. You can download the Third Party Lender Agreement and the Third Party Lender Certification.
CTCIC 504 Funding/Takeout
CTCIC 504 Loans fund once a month. CTCIC issues a bond (debenture) for each 504 Loan it closes and the SBA packages the bond together with bonds issued by other 504 lenders around the country and sells them on Wall Street as government backed securities. Proceeds from the sale are wired directly to the Third Party Lender to retire the interim debt. In order to make a particular funding date, the CTCIC 504 Loan closing must occur at least five (5) weeks prior to the scheduled funding date. View the 2011 SBA Funding Schedule.