Posted By: Lori01
504 Loan question - 05/12/22 07:11 PM
We have a deal where we did a loan for over $1 million to purchase a business, ten year term. Plus we did a smaller loan, under $1 million, as shorter term financing, while the borrower was waiting for an SBA 504 to come through. Our term was one year, but it paid off in about two months.
I believe I can claim the larger loan as community development. My question is should I claim the smaller loan as a small business loan?
Technically they are for the same property. So what concerns me is I don't want it to look like I'm inflating my small business loan volume by doing two loans for one deal. Plus the smaller loan is really a bridge loan.
On the other hand, nowhere in the reg does it say how long the loan has to be out there. We lent the money, the customer used them money, then paid us back. Just like any other loan.
In a different example, I have two loans for the same business and both are under $1 million, Can I claim both as small business loans?
I believe I can claim the larger loan as community development. My question is should I claim the smaller loan as a small business loan?
Technically they are for the same property. So what concerns me is I don't want it to look like I'm inflating my small business loan volume by doing two loans for one deal. Plus the smaller loan is really a bridge loan.
On the other hand, nowhere in the reg does it say how long the loan has to be out there. We lent the money, the customer used them money, then paid us back. Just like any other loan.
In a different example, I have two loans for the same business and both are under $1 million, Can I claim both as small business loans?