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What are the SBA’s requirements regarding the Loan terms from the Third Party Lender (TPL)?

April 26, 2017Lender loan party requirements SBA terms

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What are the SBA’s requirements regarding the Loan terms from the Third Party Lender (TPL)?

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Third Party Lender (TPL) permanent first position loan terms and rates (including points and fees as applicable) are set by the TPL with a few simple limitations: • The minimum term of the permanent loan is 10 years when the CTCIC 504 Loan is 20 years (typically real estate projects) and 7 years when the CTCIC 504 Loan is 10 years (typically machinery and equipment projects); • Interest rates must be legal and reasonable; • TPL Loan must not have any early call feature or contain any demand provisions unless the loan is in default; • TPL Loan must not be open-ended For more information, visit our Partners’ Resources.