Fillable PeopleFund (CDC) 504 Checklist and Loan Application (People Fund Texas)

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PeopleFund (CDC) 504 Checklist and Loan Application (People Fund Texas)

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Rev. 09/2/2020
PeopleFund (CDC)
504 Checklist and Loan Application
_____ 1. Completed 504 Loan Application and signed Assistance Agreement (this form)
_____ 2. Brief History of the Business. (Business Plan for start-ups)
_____ 3. Personal History (SBA Form 912): All individuals who own 20% or more, officers, &
key managers complete this form. (Write hand-written initials in 4 places.)
_____ 4. Resumes of owners and key management (Resume template available)
_____ 5. Copy of photo ID (Driver license, etc)
_____ 6. Current personal financial statement: not more than 90 days old. (SBA Form 413 or
Bank Form may be used.) Not more than 60 days old.
_____ 7. Personal cash flow statement (Template available)
_____ 8. Personal income tax returns (3 years). Include K1s and W-2s.
_____ 9. Current interim financial statements of business including income statement, balance
sheet, aging reports, and debt schedule; not more than 90 days old.
____ 10. Business income tax returns (3 years)
____ 11. Bank Statements for the business (3 months)
____ 12. Affiliate business tax returns (3 years)
____ 13. Projections of Revenues and Expenses with assumptions, if needed. (2 years for
existing operations; Start-ups should provide month-to-month projections for first year.)
____ 14. Cost Documents: Copies of real estate purchase agreement, written construction bid
from contractor, written estimate of FF&E from vendor. Include itemized list of
professional fees or quotes.
____ 15. For debt refi loan applications: Copies of existing bank loan agreement, promissory
note, DOT (recorded), settlement statement (HUD), 12-mo payment history/transcript.
____ 16. For franchised operations: Copy of franchise agreement
____ 17. Copies of any previous real estate environmental reports, if available.
____ 18. Previous SBA Loans: Copy of Loan Authorization, if available.
____ 19. Corporate Documents: Articles of Incorporation, with amendments, and By-Laws
____ 20. LLC Documents: Articles of Organization, Operating Agreement, etc
____ 21. General Partnerships: Partnership agreement
____ 22. Others: Assumed Name Certificates (dba name)
____ 23. CAIVRS Notice
Equal
Opportunity
Lender
Rev. 09/2/2020
SBA 504 Loan Application
________________________________________________________________________________________
Borrower's Contact Person: _____________________________________________________________
Phone #: ________________________ E-Mail Address: ______________________________________
Provide information about the Operating Company in Section 1. If the proposed loan will be made to a
separate Holding Company, provide information about that entity in Section 2.
SECTION 1: About the Business (Operating Company)
1. Name of Operating Company: _________________________________________________________
2. Nature of Business (or DBA name): ____________________________________________________
3. Federal Taxpayer ID #: _________________________
4. Mailing Address: ____________________________________________________________________
5. Legal Structure (e.g. C-Corp, LLC, Proprietorship, etc.): _____________________________________
6. Does your business (including affiliated businesses) operate under any of the following agreements?
Franchise Licensing Supplier Insurance Agent Other
Name: ________________________________________________________________________
7. Project Address (Where will the business be located?): Note: This SBA loan requires the business to
occupy at least 51% of an existing building or 60% if the project is for new building construction.
Street (or legal description): _______________________________________________________
City, State, Zip: ________________________________________________________________
8. Number of Employees (presently or when operations begin): Full Time ________ Part Time _______
Number of Employees in two years (estimated): Full Time _______ Part Time _______
9. Business Ownership: Complete the following table for all individuals and entities that have an ownership
interest in the operating company. Ownership must equal 100%. (Attach additional sheet if needed.)
Owner #1
Owner #2
Owner #3
Owner #4
Owner's Legal Name:
Social Security / Tax ID#:
Title:
Ownership %:
U.S. Citizen ?:
Rev. 09/2/2020
SECTION 2: Holding Company Information
Complete this section if the property to be purchased with the loan proceeds will be owned by a separate entity
(Holding Company) and leased back to the Operating Company.
1. Name of Holding Company: _________________________________________________________
2. Federal Taxpayer ID #: ________________________________
3. Mailing Address: __________________________________________________________________
4. Legal Structure (e.g. C-Corp, LLC, Individual, etc.): _______________________________________
5. Holding Company Ownership: Complete the following for 100% of all individuals and entity owners.
Owner #1
Owner #2
Owner #3
Owner #4
Owner's Legal Name:
Social Security / Tax ID#:
Title:
Ownership %:
U.S Citizen?
SECTION 3: Project Costs
Enter the project costs. Estimated costs are acceptable at this time. Before submission of the finalized loan
application to SBA, actual costs will be required. Purchase agreements, construction bids, and written
equipment quotes from suppliers will be requested. Provide documentation of any project costs already
incurred such as land already owned, professional fees, etc.
Land Acquisition: $_________________
New Construction, Expansion, Remodeling: $_________________
Acquisition of Existing Facility: $_________________
Equipment (acquisition, installation): $_________________
Debt-Re-finance (Complete Section 8): $_________________
Professional Fees (appraisal, engineering, etc): $_________________
Construction Contingency (up to 10% of new construction cost): $_________________
All Other (bank fees, interim interest, etc): $_________________
TOTAL PROJECT COSTS $_________________
1. What is the amount of borrower's injection (down payment?) $___________________
2. What is the source of borrower's injection?
Business Cash Personal Cash R/E Equity Other
If injection is from Other sources, please describe: __________________________________________
Rev. 09/2/2020
SECTION 4: Individual Personal Data
Information requested in this section will assist the CDC to process your loan application. Your reply to these
questions is optional.
1. Individual's Name: ____________________________________________________________________
Gender: Male Female Not Disclosed
Race: American Indian/Alaskan Native Asian Black/African American
Native Hawaiian/Pacific Islander White/Caucasian Not Disclosed
Ethnicity: Hispanic/Latino Not Hispanic/Latino
2. Individual's Name: ____________________________________________________________________
Gender: Male Female Not Disclosed
Race: American Indian/Alaskan Native Asian Black/African American
Native Hawaiian/Pacific Islander White/Caucasian Not Disclosed
Ethnicity: Hispanic/Latino Not Hispanic/Latino
3. Individual's Name: ____________________________________________________________________
Gender: Male Female Not Disclosed
Race: American Indian/Alaskan Native Asian Black/African American
Native Hawaiian/Pacific Islander White/Caucasian Not Disclosed
Ethnicity: Hispanic/Latino Not Hispanic/Latino
4. Individual's Name: ____________________________________________________________________
Gender: Male Female Not Disclosed
Race: American Indian/Alaskan Native Asian Black/African American
Native Hawaiian/Pacific Islander White/Caucasian Not Disclosed
Ethnicity: Hispanic/Latino Not Hispanic/Latino
Rev. 09/2/2020
SECTION 5: Ownership Interests in Other Businesses
Individual loan applicants who own 20% or more of the holding company or operating company should
complete this section. Provide information in the table below regarding ownership interests in any other
business or entity (affiliate.) Attach additional sheet if needed.
Individual Owner's Name:
Affiliate Business Name
Your
Ownership
Percentage
What is the legal structure of this entity?
Sole
Proprietorship
LLC
Partnership
C‐Corporation
Other
Individual Owner's Name:
Affiliate Business Name
Your
Ownership
Percentage
What is the legal structure of this entity?
Sole
Proprietorship
LLC
Partnership
C-Corporation
Other
Individual Owner's Name:
Affiliate Business Name
Your
Ownership
Percentage
What is the legal structure of this entity?
Sole
Proprietorship
LLC
Partnership
C-Corporation
Other
Individual Owner's Name:
Affiliate Business Name
Your
Ownership
Percentage
What is the legal structure of this entity?
Sole
Proprietorship
LLC
Partnership
C-/Corporation
Other
Rev. 09/2/2020
SECTION 6: Prior Government Financing
Has the business, affiliate companies, or individual owners received any federal government loans, now or in
the past: Yes No If yes, complete the table below. Include SBA, FHA, disaster assistance loans,
student loans, etc. (Attach additional sheet if needed.)
Loan A
Loan B
Loan C
Loan D
Borrower / Individual Name:
Name of Bank / Lender:
Name of Federal Agency:
Purpose of Loan:
Date of Loan Funding:
Original Loan Amount:
Current Loan Amount:
Loan Status (Current?):
SECTION 7: Miscellaneous Information
1. Are any of the individual loan applicants veterans of the U.S. military? Yes No If yes,
complete the table below and attach the Certificate of Release or Discharge from Active Duty.
Applicant #1
Applicant #2
Applicant #3
Applicant #4
Individual Veteran's Name:
Name of Military Branch:
Years Served:
Honorable Discharge?
Rank at Discharge:
2. Are any of the individual loan applicants related (in terms of kinship) to the contractor hired for project
construction / renovations?
Yes No If yes, who? ______________________________ (Attach explanation.)
3. Does the business or any individual applicant owe taxes for years prior to the current year?
Yes No If yes, who? ______________________________ (Attach explanation.)
4. Does the business or any individual applicant have pending law suits, tax liens or outstanding judgments?
Yes No If yes, who? ______________________________ (Attach explanation.)
5. Has the business or any individual applicant had any bankruptcy proceedings in the last 10 years??
Yes No If yes, who? ______________________________ (Attach explanation.)
Rev. 09/2/2020
SECTION 8: Refinancing of Qualified Debt
Complete this section for each loan to be refinanced.
_____________________________________________________________________________________
LOAN #1: Lender's Name: ______________________________
Current Balance: $__________________
Original purpose of the Loan: ___________________________________________________
Is this loan secured by a Federal Government agency (SBA, USDA, etc)? Yes No
If yes, which government agency? ____________________________________________
______________________________________________________________________________________
LOAN #2: Lender's Name: ______________________________
Current Balance: $__________________
Original purpose of the Loan: ___________________________________________________
Is this loan secured by a Federal Government agency (SBA, USDA, etc)? Yes No
If yes, which government agency? ____________________________________________
______________________________________________________________________________________
LOAN #3: Lender's Name: ______________________________
Current Balance: $__________________
Original purpose of the Loan: ___________________________________________________
Is this loan secured by a Federal Government agency (SBA, USDA, etc)? Yes No
If yes, which government agency? ____________________________________________
______________________________________________________________________________________
LOAN #4: Lender's Name: ______________________________
Current Balance: $__________________
Original purpose of the Loan: ___________________________________________________
Is this loan secured by a Federal Government agency (SBA, USDA, etc)? Yes No
If yes, which government agency? ____________________________________________
______________________________________________________________________________________
Rev. 09/2/2020
SECTION 9: Authorization to Release Information
The undersigned loan applicant understands that the CDC is relying on the information provided in this Loan
Application to assess the business's credit strengths and evaluate SBA eligibility. To the best of the applicant's
knowledge and belief, all of the information provided in this application (including any attachments and
exhibits) is true, correct, and valid.
Information Sharing: The applicant authorizes the CDC to receive any other information (such as financial
statements and credit reports) from any other entities such as banks, credit bureaus, and associates for any
purpose as it pertains to the credit transaction. CDC is also authorized to provide any of its credit findings and
information back to those said entities.
Business Loan Applicant:
__________________________________________
Holding Company Name (Print)
__________________________________________
Operating Company Name (Print)
__________________________________________ ________________________________
Name of Individual Applicant (Print) Title
__________________________________________ ________________________________
Signature Date
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signature
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Rev. 09/2/2020
PeopleFund (CDC)
DISCLOSURE STATEMENT
REGARDING SBA 504 LOAN CHARGES & REQUIREMENTS
SBA SECTION 504 ASSISTANCE AGREEMENT
The following disclosures apply to the United States Small Business Administration’s (SBA) portion of the
permanent “take-out” financing (called the “debenture”) provided by PeopleFund (The “CDC”) under the
SBA 504 Loan Program. This statement is not intended to be all-inclusive. Please read this Disclosure
Statement carefully and request additional information if there is anything you do not understand. In
signing this Disclosure Statement, you acknowledge that you have read, understand, and agree to abide by
the provisions set forth.
Your private sector lender (The “Bank”) should be consulted for the terms and conditions of its portion of
the permanent financing.
After SBA has approved your 504 loan application, the debenture financing will be completed in two
separate steps.
♦ First, the CDC closes your loan. Typically, you attend the closing with the CDC attorney.
Sometimes, the closing is processed by mail.
♦ Second, your debenture is funded, which occurs about 5 weeks after closing. SBA 504
Funding occurs once per month, on approximately the second Wednesday of every month.
1. NO REPRESENTATIONS - The Certified Development Corporation (CDC) may not and cannot ensure
the success of your 504 loan application. The actual funding of the 504 debenture and disbursement of the
proceeds to you is subject to SBA’s approval of your application and is also subject to your satisfactory
compliance with the terms and conditions set forth in SBA’s Authorization and Debenture Guaranty (SBA
Form 1248). By signing this Disclosure Statement, you acknowledge that the CDC has made no
representations to you, and that you have not relied on any representations made by CDC, regarding the
assurance of SBA’s approval of your loan or the sufficiency of your qualifications to receive a loan through
the 504 program.
2. CREDIT CRITERIA - Although the 504 loan program is a lending program for healthy and expanding
small businesses, start-up businesses may be funded provided they meet SBA’s credit criteria. The credit
criteria require the small business to be able to demonstrate adequate cash flow from operations to repay
debt, adequate working capital, and sufficient collateral. Additionally, by signing this Disclosure Statement
you hereby authorize the Certified Development Corporation or any of its affiliates to make all inquiries it
deems necessary to verify information to determine credit-worthiness. Further, by signing this Disclosure
Statement, you agree that the Certified Development Corporation, or any of its subsidiaries, at any time and
in its sole discretion, may disclose the status of the proposed transaction and credit data and other
information concerning or relating to the undersigned or the proposed transaction to the SBA, referral
sources, franchisers, vendors, loan participants, and agents of both the undersigned and the CDC.
3. CDC AUTHORITY - While the CDC is responsible for the preparation of the loan application sent to the
SBA, the SBA sets all loan conditions. Any changes to the loan conditions require SBA approval submitted
through the CDC.
Rev. 09/2/2020
4. LOAN FEES - The “net debenture proceeds” is the CDC’s portion of the total project (maximum of 40%)
financed by SBA/CDC. The following loan fees will be paid by the Borrower for the SBA portion of the
financing. All of these fees are included in the 504 loan (gross debenture):
A. CDC Processing Fee – 1.5% of the net debenture proceeds.
B. SBA Reserve Fee - 0.5% of the net debenture proceeds (Subject to change by SBA)
C. SBA Funding Fee - 0.25% of the net debenture proceeds
D. Underwriting Fee
(1) 20-year debenture - the sum of the net debenture amount, CDC Processing Fee, SBA
Guaranty Fee, and Funding Fee divided by 0.99600; round this number up to the next highest
thousand; multiply this number by 0.004.
(2) 10-year debenture - the sum of the net debenture amount, CDC Processing Fee, SBA
Guaranty Fee, and Funding Fee divided by 0.99625; round this number up to the next highest
thousand; multiply this number by 0.00375.
5. CLOSING COSTS
♦ CDC Closing Costs – Includes CDC closing attorney fee and specific closing costs. These costs are
paid at the closing table. (Up to $3,500 of these costs will be included in the financing and reimbursed
to the borrower.)
♦ Other Closing Costs – Other closing costs include, but not limited to, title work (i.e. abstracting,
updating of titles, copies, etc.), the title insurance policy premium, lien search fees and survey fees,
your attorney’s fees, recording and express mail fees. Borrower pays these fees out-of-pocket at
closing. These fees are not included in the 504 financing and not reimbursed to the borrower when
the 504 loan is funded. These fees must be paid at the SBA loan closing table.
6. SERVICING, GUARANTY AND PARTICIPATION FEES - The following servicing fees will be paid
by the Borrower on the unpaid balance of the CDC loan, such unpaid balance, to be determined at 5 year
intervals at the beginning of such interval. The monthly CDC/SBA note payment amount reported to the
Borrower will include these fees as part of the monthly payment. (These fees are already built into the
monthly loan payment).
♦ CDC Servicing Fee: .625% - 1.00% per annum
♦ CSA (Wells Fargo) Servicing Fee: 0.1% per annum
♦ Borrower Guaranty Fee: 0.3205% per annum.
♦ Borrower Guaranty Fee for Debt Refi Program: 0.3220% per annum
The senior collateral lender (the bank) will be charged a one-time participation fee which is 50 basis points
of the bank loan portion.
7. INTEREST RATES - The interest rate on the 10 and 20/25 year 504 loans are based on a “spread” over
the five (5) and ten (10) year US Treasury rates, respectively. Any interest rate quoted to you is an estimate
and will actually be set by SBA on the date of the debenture sale, which is usually thirty to forty-five days
after the execution of the documents for the permanent “take-out” loan. The permanent “take-out” loan will
not be funded until the debenture sale. The participating lender may establish its own interest rate, provided
that the rate is legal, reasonable, and reflects the prevailing level of interest rates in the market area at the
time for loans of similar risk, maturity, location, fixed or variable rate or other relevant factors.
8. AUTOMATIC DEBIT - The SBA requires a payment program whereby the Borrower’s 504 loan
payments are automatically debited each month from the Borrower’s bank account.
9. LATE CHARGE - A charge of $100, or 5% of the late amount, whichever is greater, will be charged to the
Borrower in the event funds are insufficient on the debit date.
Rev. 09/2/2020
10. IDENTITY VERICATION - CDC is required by SBA Policy Notice 5000-901 to request certain
documentation of borrowers in order to provide a verification of their identity. Any portion of the
information gathered during the loan process may be used in the verification process.
11. BORROWER’S INJECTION - The borrower’s equity contribution to the project must be a minimum of
10% of the total project amount (minimum of 15% for companies with less than 2 full years of operations)
and must be in the form of cash (first to be spent) or project-related real estate. Should the project being
financed involve a limited or single-purpose building or structure, a minimum 15% equity contribution will
be required. Additionally, should the project involve a business with less than 2 full years of operations and
a limited or single-purpose building or structure, a minimum 20% equity contribution will be required.
Borrower must document the equity injection with copies of cancelled checks, paid invoices or other
information acceptable to CDC and SBA. If any of the contribution is borrowed and secured with any of
the 504 project assets, such loan must be subordinated to the liens securing the 504 loan and may not be
repaid at a faster rate than the 504 loan unless prior written approval is obtained from CDC/SBA. A copy
of any debt instrument of such loan must be supplied to the CDC in the application.
12. MISCELLANEOUS LOAN TERMS - The closing documents for the 504 loan are likely to contain the
following provisions:
♦ Prior CDC/SBA approval required for:
(A) The reorganization, merger, consolidation or change of ownership of the
business of the Borrower;
(B) The sale or further encumbrance of the collateral;
(C) The payment of bonuses and/or distributions upon capital stock, including but
not limited to the payment of dividends.
♦ Hazard insurance, from a carrier with a Best rating of A or better, covering fire, lightning,
extended coverage, vandalism, and malicious mischief for the maximum insurable value(s) on
all property on which liens are taken, liability insurance, workers’ compensation, and (if
needed) flood insurance;
♦ The requirement for annual financial statements to be submitted by the borrower;
♦ Total annual compensation of officers, owner and/or principals of the small business may be
subject to limitation under adverse financial conditions as determined by CDC/SBA. It may
also be required that all inter-company debt with affiliates and/or officers, directors or
shareholders be subordinated to the debt incurred through CDC/SBA.
13. LEASING AND SQUARE FOOTAGE REQUIREMENTS
♦ Existing Buildings: 504 funds can be used for the purchase and/or renovation of an existing
building so long as the small business occupies 51% or more of the building space, and no 504
loan funds are used to renovate any part of the building not used by the small business.
♦ New Construction: 504 funds can be used for the construction of industrial and commercial
space as long as the small business occupies at least 60% of the building space upon
occupancy, and 80% within ten years. The remaining 20% can be permanently leased.
14. COLLATERAL ASSIGNMENT OF LIFE AND/OR DISABILITY INSURANCE - Life and/or
disability insurance may be required to insure against the risk of death or disability of a person critical to the
success of the small business or one whose continued earning power is being relied upon in making the
loan. If it is necessary to require one or more principals of the small business to obtain life and/or disability
insurance, the coverage required shall be only in such minimum amounts necessary to protect the loan.
15. ADDITIONAL COLLATERAL - Additional collateral may be required. Generally, the value of the
assets acquired with the 504 loan proceeds should constitute adequate collateral, however, all 504 loan are
to be so secured as to reasonably assure repayment. Should there be a shortfall in the appraised value of the
Rev. 09/2/2020
assets being acquired, additional collateral may be required in the form of personal and/or business assets
owned by the Borrower and/or small business.
16. PREPAYMENT – The CDC loan is pre-payable. Payment of the entire outstanding balance may be made
prior to the maturity date, but no partial prepayments may be made. Any prepayment during the first half of
the stated term must be accompanied by a prepayment premium. The premium is calculated on the
outstanding principal balance of the Note times a premium percentage. A schedule of the dollar amount of
the premium and the semi-annual payment dates will be provided to you after the funding of the 504 loan.
In order to process a request for prepayment, CDC requires written notification at least 60 days prior to the
semi-annual prepayment date.
The debenture interest rate determines the amount of the prepayment premium. The premium begins in
year one. It is calculated by multiplying the debenture rate by the principal balance of the debenture. The
premium declines each year by 1/10 over the first 10 years on a 20/25 year debenture. After the 10
th
year,
the premium is 0%.
Example: 20-Year Debenture
Debenture Rate: 2.98%
Annual Decrease: 2.98% ÷ 10 = .298
Year
Premium
1
2.98%
2
2.682%
3
2.384%
4
2.086%
5
1.788%
6
1.490%
7
1.192%
8
.894%
9
.596%
10
.298%
11
0%
On a 10-year debenture, the premium declines each year by 1/5 of the semi-annual debenture rate over the
first five years. After the 5
th
year, the premium is 0%.
Example: 10-Year Debenture
Semi-annual debenture Rate: 1%
Annual Decrease: 1.00% ÷ 5 = .2
Year
Premium
1
1%
2
.8%
3
.6%
4
.4%
5
.2%
6
0%
17. PERSONAL HISTORY STATEMENT - Personal History Statement (SBA Form 912) is required for
each officer and director (regardless of ownership) and each proprietor, partner and stockholder with 20%
or more ownership of the Business; and each owner with 20% or more ownership of the Holding Company.
Rev. 09/2/2020
18. ASSUMPTION FEE – 504 loans are assumable. A fee of 1% of the outstanding principal balance of the
loan will be charged by the CDC if the loan is assumed by another borrowing entity. In addition, the
borrower must pay all processing costs and expenses incurred by CDC and/or the SBA in connection with
the assumption.
19. JOB REQUIREMENTS - The small business must preserve or create, within two years after the loan is
funded, one job opportunity per $75,000 of 504 financing. National objectives may be applied in lieu of
this requirement.
20. FINANCING OF MACHINERY AND EQUIPMENT - The Borrower, prior to the 504 loan closing,
must provide CDC/SBA with a list of the machinery and equipment purchased with loan funds. Collateral
should be described by quantity and "type," including brand name. Items costing $5,000 or more should
include the serial number.
21. DO-IT-YOURSELF CONSTRUCTION PROJECTS - Situations where the borrower and/or small
business has acted as their own contractor have proved to be generally unsatisfactory and cause
considerable problems in the closing process. Such an approach generally shall not be permitted unless the
applicant is qualified as a building contractor.
22. PROJECT COST OVERRUNS - The Borrower must pay for any additional project costs incurred as a
result of overruns or unanticipated expenses in constructing/financing the project. Cost overruns to be
funded by any source other than additional equity provided by Borrower must be approved by CDC/SBA
prior to the 504 loan closing.
23. SURVEY - An “as built” survey sufficient to remove title policy exceptions must be provided by a certified
surveyor prior to the 504 loan closing. The survey must include a flood hazard designation along with the
physical address of the property. The survey must be certified to CDC, SBA and the Title Company.
24. CHILD SUPPORT - Borrower certifies that no principal of the small business who owns at least 50% of
the voting interest of the company is delinquent more than 60 days under the terms of any (a) administrative
order, (b) court order, or (c) repayment agreement that requires payment of child support.
25. CDC SCHEDULE OF FEES - A good-faith deposit of $2,500 will be collected prior to processing the
loan application. A Balance of 1% of the net debenture (with credit given for the deposit) will be considered
earned when the Debenture Authorization is issued by SBA.
A. Before SBA has Approved the Loan Request (Loan Authorization not yet issued):
(1) If borrower withdraws the loan request (for any reason), the good-faith deposit will
be refunded (less costs incurred.)
(2) If SBA declines the loan request, the good-faith deposit will be refunded (less costs
incurred.)
B. After SBA has Approved the Loan Request (Loan Authorization has been issued):
(1) One percent (1%) of the net debenture is considered earned by the CDC, due and
payable by the borrower at this time.
(2) CDC will forward the SBA Loan Authorization and an invoice for the 1% to the
borrower. Borrower shall return the executed Loan Authorization and a check for
the 1% to the CDC. When the loan funds, this 1% will be refunded to the
borrower. If the loan does not fund (for any reason), the 1% is considered earned
by the CDC and will not be refunded to the borrower.
26. LOAN FUNDING - The funding of a 504 loan does not occur at closing. It occurs approximately 30 to 45
days after the closing of the loan provided all requirements set-forth in SBA’s Authorization have been
Rev. 09/2/2020
satisfied. It is CDC’s desire to fund the 504 loan in a timely matter. To do so, we encourage the Borrower
to stay in touch with their CDC representative during the construction and/or interim funding period.
27. GUARANTEES - SBA requires the guaranty of any person/entity owning 20% or more of the small
business, irrespective of the form of ownership or entity involved.
28. CREDIT REPORTS - CDC (and/or its representative/agent), Banker, and/or Lender may pull credit
reports for each principal. A report may also be pulled on the subject Small Business Concern and
affiliates. Any credit information may be discussed and shared among the CDC, Bank, Lender, SBA, or
other associates involved in the processing and servicing of the loan.
29. FINANCIAL INFORMATION – Loan applicant authorizes the exchange of financial statements, tax
returns, and other information between CDC, Bank, Lender, SBA, loan underwriters, credit analysts, loan
packagers, and other associates involved in the loan application process and servicing of the loan.
30. MEDIA RELEASE – Loan applicant authorizes CDC to utilize the company name and logo for digital
marketing, social media promotion, blog posts, and other print media releases. Applicant understands that
media announcements aid in promoting the CDC’s loan programs which foster economic growth in the
State of Texas.
THE SUBJECT SMALL BUSINESS CONCERN/APPLICANT (SIGNED BELOW) DOES HEREBY
INDEMNIFY AND HOLD THE CDC AND ITS REPRESENTATIVES HARMLESS FROM ANY AND ALL
LIABILITY FOR ANY LOSS, DAMAGE, OR INJURY (INCLUDING, WITHOUT LIMITATION,
ATTORNEYS FEES INCURRED WITH ATTORNEYS OF CDC) ARISING OUT OF OR RESULTING
FROM THE FAILURE BY THE SMALL BUSINESS CONCERN/APPLICANT TO RECEIVE OR ACCEPT
THE SUBJECT LOAN.)
THE UNDERSIGNED OFFICER OR AGENT REPRESENTS, WARRANTS, AND CERTIFIES THAT
HE/SHE HAS FULL AUTHORITY TO EXECUTE THIS AGREEMENT ON BEHALF OF THE COMPANY.
READ AND AGREED TO:
__________________________________________ __________________________________________
Holding Company Name (Print) Operating Company Name (Print)
__________________________________________ __________________________________________
Individual Applicant's Signature Title
_________________________
Date
Deposit Acknowledgement:
CDC hereby acknowledges receipt of a good faith deposit of:
$_________________, as of ____________________, 20______.
________________________________________________________
CDC Representative Signature
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PeopleFund (CDC) 504 Checklist and Loan Application (People Fund Texas)

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Completed 31 January 2021

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