Q: How do I change the account from which payments are deducted?
A: Complete a new Authorization Agreement and fax or e-mail to 6 Bridges Capital Corporation (6BCC) by the 13th of the month prior to the change. Be sure to sign and date the form. Forms received after the 13th will not become effective until the following month. For example, if a form is received January 13, the change will be effective February 1. If the form is received January 16, the change will be effective March 1. A voided check from the new account must be included with the completed signed agreement; send as a separate page.
Q: Why is my payment higher than the amount shown on the note?
A: Your payment includes fees being paid to SBA, Central Servicing Agent and 6 Bridges Capital Corporation. These fees are adjusted downward at 5-year intervals.
Q: Why is the rate on my note different than what was estimated during the loan process?
A: The rate on the loan is determined approximately one week prior to the date the loan is funded and is based on current market conditions. Typically they follow the trends of treasury rates. The loan is pooled with all of the other SBA 504 loans funded in the same month and sold in the form of debentures.
Q: How do I know what I paid in interest and fees for last year?
A: Your amortization schedule will provide accurate information regarding interest and fees as long as payments are paid in a timely manner. Also, Colson Services sends notices by January 31 itemizing interest and fees paid for the prior year.
Q: How can I pay off my loan?
A: Unlike standard bank loans, SBA 504 debenture-funded loans must follow strict guidelines. Loans may pre-pay only on the third Thursday of each month. 6 Bridges Capital Corporation must receive a written request from the borrower at least 15 days prior to the pre-payment date. Also, there may be a pre-payment premium and interest due. For more specific information, see Prepayment Guidelines.
Any questions, issues or concerns you may have regarding your loan should be directed to 6 Bridges Capital Corporation; we are your conduit to SBA and Colson Services.
Q: Can I pay off my loan early?
A: Yes, but there is a pre-payment premium for the first half of the term of your loan. While it declines each year, you may want to take this into consideration if you are considering pre-paying your loan. You can minimize the interest due by pre-paying your loan the month before your semi-annual date. If you must pre-pay your loan, you may want to consider structuring the pre-payment around this date.
Q: Can I refinance my first mortgage loan without pre-paying my SBA loan?
A: Generally, your first mortgage loan has a higher interest rate than the SBA 504 loan. If you decide to refinance this first mortgage loan, 6 Bridges Capital Corporation will subordinate to a straight refinance (cash-out may be allowed if the proceeds are used for building improvements) of your first mortgage loan – 6 Bridges Capital Corporation charges no fees for this service.
Q: Is my loan assumable?
A: If you are selling the building, a qualified buyer can assume your loan for a $1,000 assumption fee. The pre-payment penalty does not apply in this instance.