How to Apply – 5 Easy Steps To Your 504 Loan
- Contact Montana Community Finance Corporation (MCFC)
Phone: 406.443.3261 or 866.443.3261
- MCFC will work with you and your lender to analyze your loan request. We will ask you to complete our loan application, provide financial information, a list of project costs, a business plan and other applicable documentation. An appraisal is needed for most real estate projects, as well as an environmental report.
- Loan approval
After the underwriting of the loan has been completed and the loan has been approved by MCFC’s Loan Review Committee, it is submitted to the SBA. When approved, the SBA issues an Authorization for Debenture Guarantee. This is SBA’s written agreement that outlines the terms and conditions under which they will 100% guarantee the debenture MCFC will have issued to fund your loan.
- Lender financing
After your 504 loan is approved by the SBA, your lender provides an interim loan for your business to acquire and/or improve the property. The 504 loan will replace the lender’s interim loan with long term, fixed rate financing when your project is complete and the building occupied or the equipment purchased. Your lender will also provide a permanent loan.
- 504 financing complete
One of our closing officers will work with your business in gathering and preparing closing documents for your SBA 504 loan. Once the loan is closed, they will submit the final closing package to SBA for approval. The loan typically funds within 60-90 days after closing following the schedule set by SBA.