Updated 12/22/2009
Having held up in this economy for over a year now and the winter months
coming, many
clients are inquiring about deferments of their SBA 504 2nd trust deed
loan. These deferments are possible and can be granted for 6 months
in-house through the CDC that originally approved and processed your SBA
debenture loan (Do not confuse the CDC with the bank who lent you the
first trust deed loan). Deferments of 12 months can be established but the
SBA regional office has to approve the deferment.
At the end of the
deferment period, a repayment plan not exceeding 60 months is established
for the deferred payments during which you will pay your regular payment
and the deferment plan payment. Your proforma will be used to examine your
repayment ability and possibly the repayment period.
The
specifics regarding your deferment should be obtained directly from your
CDC and the data in this article is meant to merely provide you with
general information.
The following is the list of items that probably will be requested by your
CDC:
-
Written request for deferment signed by the guarantors. The letter
should reference your SBA loan number (appearing on your monthly Colson
statement or the promissory note)
-
A
letter detailing the following information:
-
The
problems the business is experiencing which have caused you to request
a deferment
-
Steps you have already taken towards solving the problem
-
Additional steps you intend to implement to improve the situation
-
How
many people does your company currently employ
-
Will
your company need to reduce staff if deferment is not approved?
-
Status
of the first trust deed mortgage loan:
-
Is
the loan current or past due?
-
Did
you request deferment on your first trust deed mortgage?
-
Contact information for the lender
-
For your business
entity that is on the title for the property you will probably need:
-
Cash flow projections for the next 12 to 24 months with
narrative - The revenue projections will need to justify your ability
to make loan payments plus the repayment plan payments. In your
narrative
explain how the projections for your business were derived. Use the
questions below as a guideline and add any additional information
pertaining to your business that would be useful in explaining the
projected numbers:
-
Explain how you arrived at the projected numbers. Pay particular
attention to Sales, Cost of Goods Sold, Employee Costs, and any
other expense that is substantial for your business
-
What is the
basis for your figures
-
What variables
did you use to arrive at these numbers
-
What are your plans for expanding marketing and
advertising if any
-
Federal business tax return for 2008
-
2008 year-end Profit and Loss statement
-
Interim Profit and Loss statement and balance sheet
dated within 60 days
-
Business debt schedule (view
sample form) - Ask your CDC for their form
-
For each individual guarantor:
-
2008 Personal Federal tax return
-
Personal Financial Statement
form 413
-
Personal Budget Analysis (view
sample form) - Ask your CDC for their form
If you feel that
during the next few months you will benefit from the deferment, you should
urgently contact your CDC
(You may call the Colson
customer service number and verify the contact information of the CDC that
originated the SBA 2nd loan)
and request the deferment package immediately. They may require additional
information particular to their processing procedures. The information in
this article should give you an expectation of your CDC's basic required
package.
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