SBA 504 Loan Program

DISBURSEMENT OF SBA FUNDS

1. Final closing documents for all completed 504 projects nationwide sent to the SBA Central Office in Washington , D.C.

2. Having determined the total loans to be disbursed and having obtained the guaranty of the SBA, the underwriters negotiate the best possible interest rate with potential bond purchasers.

3. The sale of the SBA-guaranteed loans is made, generally to large institutional investors at a rate of approximately .75% above the comparable 5 year/10 year U.S. Treasury market rate.

4. The funds are wire transferred to the first mortgage lender to pay down the SBA's interim portion. Repayment by the borrower begins the next month.