Nevada State Development Corporation 504 loan transactions can only fund 12 times per calendar year or once a month. Please consult with the following list to determine your documentation deadline to make a particular debenture funding date.
PLEASE NOTE: No loan can fund until all project improvements have been completed and all associated construction draws are fully paid.
|NSDC’s Documentation Deadline||SBA Debenture Funding Date|
|December 14, 2016||February 15, 2017|
|January 17, 2017||March 15, 2017*|
|February 14, 2017||April 12, 2017|
|March 14, 2017||May 17, 2017*|
|April 18, 2017||June 14, 2017|
|May 16, 2017||July 12, 2017|
|June 14, 2017||August 16, 2017|
|July 18, 2017||September 13, 2017|
|August 15, 2017||October 11, 2017|
*Equipment only deals may fund in these debenture sales
So, it’s time to close your 504 transaction, now what? The first step is always to contact your assigned closing officer. Click here for our staff directory.
“Wait. Hold on. It’s after business hours and no one is available to take my call right now! What do I do?”
We have assembled a simple list of the items typically required to close a 504 transaction.
Borrower Required Documentation:
- 1. Organizational and corporate documentation. If a corporation is involved, Nevada State Development Corporation requires articles of incorporation and by-laws. If an LLC is involved, Nevada State Development Corporation requires articles of organization and the operating agreement; Additionally, Nevada State Development Corporation will need the Employer Identification Number (EIN) for the borrowing entity;
- 2. Name and phone number of your hazard insurance agent;
- 3. Current interim financials (balance sheet and income statement) dated within 120 days of 504 closing;
- 4. Lease between borrower and operating entity with a term of at least 20 years (term may get to 20 years with options);
- 5. Voided check for Automatic Debit (ACH) for SBA loan payment;
- 6. Evidence of required borrower capital contribution to project. Sufficient evidence typically includes the following items: (a) Fully executed, certified, stamped copy of the real estate settlement statement produced at the closing of the transaction; (b) front and back copies of cancelled checks coupled with associated invoices;
- 7. Nevada State Development Corporation will also prepare all associated SBA and Nevada State Development Corporation required loan documentation which must be executed by the appropriate parties.
Bank Required Documentation:
- 1. Copy of your executed permanent 1st note and mortgage (Please note that term MUST be 10 years for real estate deals, 7 years for equipment only deals);
- 2. Copy of your executed interim 2nd note and mortgage;
- 3. Wire transfer instructions to pay down the interim financing;
- 4. Check made payable to Nevada State Development Corporation 504, Inc. in the amount of .5% of your permanent 1st loan amount (termed the “participation fee” for non ARRA deals);
- 5. Nevada State Development Corporation will also prepare all associated SBA required loan documentation to be executed by your financial institution.
PLEASE NOTE THAT THE ABOVE-REFERENCED LISTS ARE SIMPLY THE TYPICAL REQUIREMENTS FOR MOST 504 LOAN TRANSACTIONS. YOUR SPECIFIC DEAL MIGHT REQUIRE ADDITIONAL DOCUMENTATION. PLEASE CONSULT WITH YOUR NEVADA STATE DEVELOPMENT CORPORATION CLOSING OFFICER FOR SPECIFIC DOCUMENTATION REQUIREMENTS.