Loan Instructions

Borrower Loan Instructions

  1. Call the RDC Lender to discuss your project.  The Lender will help you determine if your project is eligible for SBA 504 financing.
  2. Contact your bank and present your loan request and all required financial information.  Your bank will be able approve the loan contingent on SBA 504 approval.
  3. Set an appointment with your bank’s loan officer and the RDC Lender.  The RDC Lender will provide you with a Borrower Checklist and the necessary forms to complete for the SBA loan.  A few forms are specific to the SBA 504 loan program, but much of the information you will need to provide is the same information you provided to your bank.
  4. Once your loan has been approved by your bank, the RDC Lender can begin underwriting your SBA 504 loan.
  5. Timeframe:  Loan requests with a SBA debenture amount under $300,000 typically take 2 days to underwrite and 2 days for approval.  Loan requests with a SBA debenture over $300,000 typically take 3-5 days to underwrite and must be approved at weekly loan committee meetings.  Please allow up to eight business days from time of application for approval of these requests.
  6. The RDC Lender or your bank loan officer will call and let you know your loan has been approved by the RDC Loan Committee.
  7. The loan will now be sent to the SBA in Sacramento, CA for final approval.  Be certain to return all SBA forms and information in a timely fashion.  The SBA 504 loan cannot be sent to the SBA for final approval until all forms are completed, signed and returned.  This approval typically takes 7-10 business days.
  8. Once your loan received final approval from the SBA, your bank can order the necessary appraisals, title work and environmental studies.  These will be provided to the RDC by the bank for SBA approval.
  9. Once the bank has completed it’s due diligence, you will close on your loan.  At first, you may have two loans from your bank:  One for the bank’s 50% portion and one for the SBA’s 40% portion.  However, some banks choose to give borrowers one large loan that equals both the bank and SBA’s portions.  If your loan involves the new construction or renovation of a building, the bank will provide a construction line of credit.
  10. Once your project is complete and you are occupying your facility, the RDC will close the SBA 504 loan.  Approximately 30-45 days after the loan closes, the bank will be paid off for the SBA’s 40% portion of the loan/s.
  11. You will have two monthly loan payments:  One you pay to your bank, one you pay to the RDC.


Regional Development Company • 1757 Thornapple Circle, Valparaiso, Indiana 46385 (map) • (p) 219.476.0504 • (f) 219.476.4141