Closing Checklist

What you need to know about 504 Loan Closings:

A Step-by-Step Guide to a Smooth and Successful Closing.

Closing Checklist: A Guide for Business Owners

As a business owner, obtaining financing can be a challenging process. However, the Small Business Administration’s 504 Loan program offers an attractive financing option for small businesses looking to purchase real estate and equipment or make renovations. To make the closing process as smooth as possible, we’ve created a checklist of everything you need to close on an SBA 504 Loan:

  • Loan Application
    You have already submitted an SBA 504 Loan application, which includes everything about your business, including your financial statements, tax returns, and business plan. You would have also already provided information detailing the reason for the loan and how you intend to use the money. 
  • Business Documentation
    Be prepared with all your business documentation, including your business registration, licenses, and permits, if applicable. You will also need to provide a list of owners and their percentage of ownership.
  • Personal Financial Information
    All owners must provide personal financial information, including their credit report, tax return, and banking statement.
  • Property Information
    This only applies if you purchase property and need your appraisal, purchase agreement, and environment report. 
  • Equipment Information 
    If you are financing equipment for your business, bring the equipment quotes and/or invoices. 
  • Insurance 
    As a business owner, you will need proof of insurance, which typically includes property, liability, and workers’ compensation.
  • Closing Costs
    Know your closing costs in advance which normally include any fees associated with your loan, your legal fees, and appraisal fees.
  • Collateral
    You will need to provide collateral for the loan, including the property or equipment being financed and personal guarantees from owners.
  • Equity Injection
    SBA 504 Loans require an equity injection, meaning you must contribute a portion of the financing yourself. Typically, this ranges from 10-20% of the total project cost.
  • Timely Response 
    Respond to all requests for information and documentation in a timely manner to ensure a smooth loan closing process.
ShopRite-of-Brodheadsville Closing Checklist

By following this checklist, you can ensure that you have all the necessary information and documentation to close on an SBA 504 Loan. Find out how working with NEDCO can help simplify the process and increase your chances of success by contacting us today.