HAVE A LOAN / LOAN SERVICING

ADDITIONAL PAYMENTS DURING COVID-19 WAIVED February 2021 through March 2021

To our borrowers with a loan approved before March 272020.  If your loan funded after March 27, please call or email the office for specific regarding your loan.

  • SBA will make your regular loan payments for up to an additional 2-month period beginning with the payment due on or after February 1, 2021 (or beginning with the next payment due after any deferment period granted your loan)
  • The latest act will cover loan payments on your SBA loan, including principal, interest, and fees, up to $9,000 per month for two months beginning with your February payment.
  • Payments are to resume April 1.
  • If your business is assigned a North American Industry Classification System code beginning with 61, 71, 72, 213, 315, 448, 451, 481, 485, 487, 511, 512, 515, 532, or 812 (please refer to www.naics.com for listing of codes), SBA will make your regular monthly loan payments for up to an additional 3-month period (for a total of 5 months) starting immediately after the above 2-month period. No single monthly payment that SBA makes for these loans during the additional 2-month period or the additional 5-month period will exceed $9,000. This includes restaurants and hotels (sector 72).  Your payments will resume July 1.
  • If you have not already sent us your 2019 business tax returns, and if applicable the tax return for your real estate holding company, please email them to us as soon as you can. Please send the 2020 returns as soon as they are available.

Contact our servicing staff with more questions, 334-244-1801 or by email at  loans@sdcinc.org

Regular Servicing FAQ:

Who do I call with questions about my loan?

Once your loan has been funded, you can call our office anytime with questions or for assistance at 334.244.1801. General questions can be emailed to loans@sdcinc.org.

Do I need to send financial statements after my loan is funded?

YES. As part of the Loan Agreement borrowers promise to submit financial statements (Federal Tax Returns preferred) each year. The financial statement/tax returns should be from the Operating Company, not a real estate holding company that may have been formed along with the business. Please submit your financials via email to debra@sdcinc.org or by mail to 200 Office Park Drive, Suite 338, Mountain Brook, AL 35223.

What type of insurance should I have on the property financed by SDC?

Hazard (Property) insurance should always be in place for the buildings, equipment, furniture, fixtures and any other property funded with loan proceeds. Your insurance company should list us as “Additional Insured, Mortgagee/Lender Loss Payable”. A copy of a current insurance certificate should be sent to us by email to loans@sdcinc.org . You can also call our office or email with any questions.

You also need to maintain liability insurance, and if required flood insurance or workers compensation. If you aren’t sure about your specific loan requirements, call or email our office for help.

What if I can’t find my loan documents?

Once your loan was funded you should have received a complete copy of all your documents (Note, Amortization Schedule, Mortgage, etc.). If you need any replacement documents, call us or email. Call 334.244.1801 or 1.800.499.3034 or email loans@sdcinc.org.

I changed bank accounts and need to change my monthly payment bank draft. What do I do?

Changes need to be received no later than the 15th of the month to have in place for the next payment due. Call 334.244.1801  or email loans@sdcinc.org as soon as you know you need to make a change.

How much interest did I pay last year?

All borrowers with loans in good standing should receive a copy of the IRS form 1098 by the first week of February. This form outlines the year-end information including interest paid, fees paid, and the year-end balance as of 12/31. If you didn’t receive a copy of this form, or need to request another copy, please call 334-244-1801 and ask for someone in the Servicing Department.

We had damage from a fire, storm or other cause. Who do I contact about that?

Since your insurance should have us listed as an additional payee, any checks issued for damage should include us and need our endorsement. Call 334.244.1801 or email loans@sdcinc.org.

Does my loan payment cover the property taxes for my property?

No. Your payment only covers the principal, interest and fess of the loan. Unlike many home mortgage payments, business loan payments generally do not include any funds for taxes, insurance, etc. If you are unsure that you have paid your property taxes, contact your county tax assessor/collector as soon as possible.

How do I request a payoff for my loan?

Call our offices at 334-244-1801 as soon as you think you may want or need to pay off your loan and ask for someone in the Servicing Department. Your loan was funded from a bond issue, so there are specific processes and deadlines that need to be followed for any prepayment. The earlier you contact us, the easier it is to process.

What if I want to sell the property or business?

Selling your business or the property financed by your 504 loan has direct consequences. Since every sale and situation is different, please call our Portfolio Manager as soon as you think this “may” be an option. In some instances the loan can be assumed, in others perhaps not. In situations where a loan assumption is desired, normal credit approval is necessary. If the request is approved there is a 1% assumption fee.  We can be reached at 334-244-1801 to discuss your situation and come up with the best strategy.