Modifying Your Loan

BEFCOR also acts as the conduit to SBA to process loan servicing modifications. Here are some examples:

  • Subordinate to allow another bank to replace the existing senior lender
  • Subordination of SBA collateral to permit refinancing for business growth and expansion
  • Substitute equal or greater equity in collateral
  • Release of collateral
  • Recognize changes in the organizational form of the borrower such as conversion to a LLC, LLP, Subchapter S Corporation, or C Corporation
  • Release or substitution of obligors resulting from retirement, sale of the operating business or 504 loan assumption
  • Loan assumptions where the business relocates or is sold. Qualified buyers can assume the loan, often with the release of original obligors. There is a required 1% assumption fee plus reimbursement for legal fees and other out-of-pocket fees
  • Deferment of monthly 504 loan payment
  • Changes to the account used for the automatic draft of the 504 monthly payment