Every customer’s situation is different, so it's essential to provide information on how the bank and BDFC coordinate to fund their project.  While many options are possible, the typical SBA 504 structure can be described as 50-40-10, with the bank providing a permanent loan for 50% of the eligible project costs, BDFC provides a subordinated fixed rate loan for 40% of the project and the customer provides a 10% equity injection.

The BDFC Financing Proposal is a simple tool.  Start by entering the use of proceeds.  The notes explain how to capture certain eligible costs that your customer wish to finance, and certain ineligible costs (such as working capital or franchise fees).  The financing proposal defaults to the “standard” 50-40-10 structure. 

The BDFC Financing Proposal shows how the SBA Debenture amount is calculated.  Fees associated with the SBA 504 loan are typically financed and are included in the Debenture amount.

Click here for a BDFC Financing Proposal.  You can download it and save it on your system for use with all of your SBA 504 loan customers.