504 Loan Process

The loan process begins with either a business or a lender contacting Wessex 504 to discuss the potential project, at which time a loan checklist will be e-mailed to the potential borrower or bank. A Wessex 504 loan officer will meet with the borrower, banker or both in order to discuss the project breakdown and any possible questions. Upon receiving the completed checklist from the borrower, Wessex 504 prepares a loan analysis, which is submitted to our internal loan committee for approval usually within 2 to 4 business days.

With the committee’s approval, a Wessex 504 representative will meet with the borrower to have the completed 504 loan package signed for submission to the Small Business Administration. The SBA will then provide the official written loan authorization (final loan approval) in about 6 to 8 business days from the submission of the completed loan package. The entire approval process takes about 15 business days from the receipt of the completed loan checklist.

After receiving the SBA authorization (final loan approval), the lender has their closing and can disburse all the project funds on an interim basis. Once the purchase, new construction or renovation is completed, and all loan proceeds have been disbursed, the Wessex 504 closing takes place. At this time, the debenture is sold and the funds take out the lender for the Wessex 504 portion of the loan.

For more information please see the FAQ page.