SBA 504 Loan Prepayment
The SBA 504 Loan can be prepaid on the 3rd Thursday of every month. Please notify Donna Hamilton at 573-875-8117 by the 1st day of the month that you want to begin the prepayment process.
The best time to payoff your SBA 504 loan is the month before your semi annual debenture date. The prepayment amount must be wired to Colson Services Corporation by noon on the 3rd Thursday of that month.
SBA 504 loans are funded with semi-annual bonds and the bondholders are guaranteed a full six months payment, regardless of which month you choose to prepay your SBA 504 loan. Therefore, the prepayment amount must include all of the monthly payments up to and including your semi-annual debenture date to have enough funds to payoff the note and debenture balance.
Along with the payoff of the SBA 504 loan balance, there is a prepayment penalty in effect for the first 9 years of the 20 year 504 loan or during the first 4 years of a 10 year SBA 504 loan. That penalty decreases every six months until it zeros out in year 10 (of a 20 year note) or year 5 (of a 10 year note). The prepayment penalty must be included in the prepayment amount, if applicable.
The best time to payoff your SBA 504 loan is the month before your semi annual debenture date. The prepayment amount must be wired to Colson Services Corporation by noon on the 3rd Thursday of that month.
SBA 504 loans are funded with semi-annual bonds and the bondholders are guaranteed a full six months payment, regardless of which month you choose to prepay your SBA 504 loan. Therefore, the prepayment amount must include all of the monthly payments up to and including your semi-annual debenture date to have enough funds to payoff the note and debenture balance.
Along with the payoff of the SBA 504 loan balance, there is a prepayment penalty in effect for the first 9 years of the 20 year 504 loan or during the first 4 years of a 10 year SBA 504 loan. That penalty decreases every six months until it zeros out in year 10 (of a 20 year note) or year 5 (of a 10 year note). The prepayment penalty must be included in the prepayment amount, if applicable.
