SBA Loan Closings (Session 6): Interim Financing and Third Party Loans in SBA 504 Loans

• 1 Interim financing is interest-only and repaid by net debenture proceeds after debenture funds
• 2 Interim lender must be independent, not funded by SBA programs, and not a borrower or associate
• 3 Do-it-yourself construction requires a contractor's license, bids or third-party estimate, and lien waiver monitoring
• 4 Third-party loans need a recorded third party lender agreement, minimum amortization term, and priority over the 504 lien

Based on transcript analysis