Thank you for trusting North Texas CDC with your business financial needs. NTCDC is committed to providing you with the best customer service in the industry throughout the life of your loan. Our servicing team tackles all the intensive aspects of SBA loans after closing, including loan modifications, deferments, restructures, increases, forbearances, rate changes, and re-amortization of payments to collateral and guaranty releases. We monitor UCC-1 expirations and ensure continuations are filed, if applicable.
We keep a record of real estate, business personal property, and other types of insurance as needed. On your behalf, we also request and monitor the receipt of annual financial information from borrowers and guarantors in order to comply with SBA guidelines.
The U.S. Small Business Administration requires that we maintain current records in our office regarding your loan. The required documentation is as follow:
- Current Property Tax Receipts. We need each year’s real estate and personal property tax statements with evidence of payment such as a copy of the bank statement and canceled check or a stamped paid receipt. Property taxes are due January 31. Please send in your county tax receipt or evidence of the payment plan.
- Current Property Insurance Certificate. Please send in a copy of the renewal certificate before or within 30 days of expiration.
- Current Financial Statements. After each year end, please send a copy of the Tax Return on your Business as well as Personal Financial Statement and Tax Return of each of the guarantors. (413 Form hyperlink) Please submit your tax returns to our office no later than three (3) months after your fiscal year end.
Why am I asked for an employee job count?
A requirement of the SBA 504 Loan was to create and/or retain a certain number of jobs. NTCDC is required by the US Small Business Administration to obtain this information at the two year anniversary of the loan funding date.
When is my payment due?
Payments are due on the first business day of each month, and are made by automatic debit coordinated by the Central Servicing Agent (“CSA”), Wells Fargo. If an ACH reject occurs the payment will need to be wired. Late fees are due if payment is received after the 15th of the month.
Below are the wiring instructions:
Wells Fargo Bank, NA
420 Montgomery Street, San Francisco, CA. 94104
ABA Routing Number 121000248
FFC: SBA 504 Master Deposit Account
Account Number: 1234567892
Reference: SBA Loan # ABC Corporation
Borrower: We Make Money, LLC
Can I change my automatic payment to a new account?
You may change the account for purposes of the automatic payment at any time; however, please note that changes must be received in our office by the 10th of the month in order to become effective for the following month’s payment. Payments must be made by automatic debit. Payments by check are not accepted. Please complete a new “ACH Form” and mail it to our office (ACH Form LINK)
How can I find out my loan balance?
Check the Loan Amortization Schedule provided to you after your loan funded. If you cannot locate the Amortization Schedule, contact our office for a copy. Please note that the loan balance is not the same as the loan payoff amount.
What is my Note Rate & Effective Rate?
Your Note Rate is shown on the Note and Amortization Schedule included with your loan documents. The rate stated on the Note does not include the SBA, CSA and CDC servicing fees; however, the “Effective Rate” as referenced in your Notification of New Funding letter does include these fees.
How can I find out the amount of interest paid on my loan?
Annually, a Form 1098 is provided to the borrowing entity stating the interest paid on the loan for the most recent calendar year. Alternatively, you can check the Loan Amortization Schedule provided with your other loan documents. If you have had late payments or a deferment of payment(s), the information in your amortization schedule may not apply and you should refer to Form 1098 or contact us for correct information.
Why are financial statements required?
The submissions of annual financial statements and/or tax returns are part of the loan commitment.
Can I prepay my loan?
Yes, loans are funded via the sale of bonds which requires a slightly different payoff process than a typical bank loan. Partial prepayments are not accepted. A possible alternative to loan payoff may be loan assumption. Please contact us right away if you are considering loan payoff or loan assumption. Prepayment of a SBA 504 Loan:
- The actual prepayment amounts are available on the 6th business day of the month and payment must be received by the 3rd Thursday of same month.
- All prepayments must be made by wire transfer.
- Prepayment premiums may apply. Prepayment premium levels decline at six (6) month intervals based upon loan funding month; and are eliminated once half of the term has passed (i.e., after 10 years, there is no prepayment premium for a 20 year loan. After 5 years, there is no prepayment premium for a 10 year loan).
- A 30 day notice is required for NTCDC and 1st Lien lender.
- No partial payments are allowed.
What are the insurance requirements on my building?
You must carry insurance levels on your building as noted in your SBA 504 Loan Authorization. The U.S. Small Business Administration must be shown as 2nd Mortgagee and Loss Payee with Form 438 BFU, CP218, or a comparable form. Evidence of insurance must also show the amount of coverage on the building and include replacement cost coverage. Please show the 2nd mortgagee and lender’s loss payee on the insurance policy as follows:
U.S. Small Business Administration
C/O North Texas Certified Development Corporation
1255 West 15th Street, #500
Plano, Texas 75075
What are the requirements to subordinate the 1st Lien?
- A signed, written request letter from the borrower that outlines: (1) why is the borrower requesting to refinance the 1st lien (2) what fees are involved in the refinancing process (i.e. origination, appraisal, etc.) (3) the amount of those fees and (4) how will this benefit the business
- A breakdown of Current Payoff Statement from 1st lien Bank
- Signed & Full Commitment Letter from Bank
(OC) & (EPC)
- Year end complete & signed Business Financials
- Complete Business Tax Returns
- Updated Personal Financial Statement (dated within 90 days). If unavailable, blank form is attached for their convenience. NOTE: PERSONAL FINANCIAL STATEMENT MUST ALSO BE SIGNED BY SPOUSE.
- Complete & signed Personal Tax Returns
Once we receive ALL the information, the request will be submitted to SBA for approval. Normal processing time from SBA is 3-4 weeks.