For Current Customers

Here are answers to most common questions borrowers ask about 504 loans:

1. Who is the main contact for questions about my SBA 504 loan?

2. How can I get my year-end statement?

3. How can I find my loan balance?

4. What if I want to refinance my bank loan?

5. What if I want to pay off my 504 loan?

6. What do I need to give Self-Help on a regular basis?

7. Could I possibly get a second 504 loan?

1. Who is the main contact for questions about my SBA 504 loan?

As your servicing agent, Self-Help is your primary contact for questions about your SBA 504 loan. We monitor your business, answer questions, and communicate with the SBA regarding necessary actions. Self-Help should always be your first contact for loan information.

2. How can I get my year-end statement?

• Colson Services Corporation sends you annual loan information on the amount of interest paid. Self-Help receives copies, and can verify the information. Typically, both you and Self-Help receive this information in early February. We will be happy to go over the information with you.
  
• For additional copies, please contact our servicing department.

• The amortization schedule Self-Help gave you when your loan funded shows how much of your loan’s principal, interest, and fees are paid off with each payment. If your loan is current, this schedule will reflect the exact balance at all times.
• Call Self-Help any time for more details on your loan. We can check your files, and get back to you with information within hours.

• If this situation arises, please call Self-Help right away to discuss.
• There are typically two occasions that will prompt you to think about refinancing:
• Interest rates drop, and you can get a better deal, or
• You wish to switch to a new bank.
• We generally cannot allow you to add more money to your loan balance when you refinance, unless you are adding on to your building. Most refinancing can cover only a straight replacement of the existing loan with a new loan of the same outstanding balance.
• In general, as long as the new financing is equal to or better than the financing you already have, we will allow you to take on a new loan senior to us. Please call Self-Help if you start thinking about refinancing, so we can assist you on a timely basis.

5. What if I want to pay off my 504 loan?

• We recommend that you contact Self-Help immediately if you are thinking about paying off your loan early. That way we can give you advice on how and when it makes sense to do so, and discuss whether you have better options.
• Please remember that part of the trade-off with long-term, fixed-rate 504 financing is that there can be a prepayment penalty (referred to as a “premium”) on your loan. We must charge this penalty to pay off the investors who provided your financing; they expect a guaranteed return for the lifetime of your loan, and we can’t provide the cash flow without collecting it.
• The first thing you should do is look back at the material we gave you when your loan closed and find the prepayment premium schedule for an estimate of your prepayment penalty.

6. What do I need to give Self-Help on a regular basis?

• Annual financial statements on your business. Tax returns are usually the best items to give us, but we can accept accountant’s statements too. Submit your documents to Self-Help contact address above.
• Updated information on your hazard insurance if you change insurance agents. We need to make sure that your new insurance has the necessary coverage.
• Job creation statistics. At the end of the second year of your loan, we will ask questions regarding how many new jobs have been created.
• Tax payment confirmations. We occasionally need verification that your property tax payments are current. Self-Help will contact you for this information if needed.
• Cooperation with our site visits, especially in the early years of your loan. After that, our site visits will occur less frequently.
• Early notification of any changes you want to make to your business that could affect your SBA 504 loan. The earlier you tell Self-Help about a possible change, the smoother the process.

7. Could I possibly get a second 504 loan?

• To find out if you are eligible for more financing through the SBA 504 or other programs, contact our 504 Servicing Department. We will talk about your current loan balance and new project idea and advise how you can access more financing.
• The amount of additional SBA financing you can obtain depends on the details of your new project and remaining SBA loan eligibility. Every small business owner meeting SBA eligibility guidelines can qualify for up to $1 million total SBA financing at any one time. In some cases, small business owners can qualify for up to $1.3 million. Eligibility up to the $1.3 million point is for those that meet the SBA’s public policy goals, which include being minority-owned, woman-owned, veteran-owned, or rurally located. To determine if your business qualifies for the higher limit, please call Self-Help.