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What are SBAs requirements regarding the Loan terms from the Participating Lender?

April 26, 2017Lender loan requirements SBA terms

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What are SBAs requirements regarding the Loan terms from the Participating Lender?

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• The Lender Loan must have a term of at least 10 years when the 504 loan is for 20 years and 7 years when the 504 loan is for a term of 10 years. • Interest rates must be reasonable. • The Lender Loan must not have any early call feature or contain any demand provisions unless the loan is in default. • The Lender Loan must not be open-ended.