Application
Initial assessment is conducted with the Borrower to discuss the project and SBA Loan parameters. Borrower shall complete and provide all documentation required by TCM. All documents shall be submitted to TCM with the Borrower's original signature included on each item.

TCM Board Approval
TCM staff performs loan underwriting and obtains Loan approval from the TCM Board of Directors within approximately two weeks.

SBA Loan Approval
TCM submits Board-approved Loans to the SBA Minneapolis District Office for final approval, which is obtained within approximately one week.

SBA Written Commitment
The SBA issues a written commitment entitled "Authorization For Debenture Guarantee," which outlines the terms and conditions of the Loan. TCM reviews this documentation with the Borrower and obtains appropriate signature(s).

Bank Closing
A copy of the signed SBA Authorization For Debenture Guarantee is provided to the First Mortgage Lender. The First Mortgage Lender provides the interim financing for the project, initially advancing both the bank and SBA funds to the Borrower.

TCM Closing
TCM will close the SBA portion of the loan upon completion of new construction or renovation to the subject property. For projects that involve the purchase of an existing building or equipment, the TCM closing will occur shortly after the bank closing.

Closing Costs
Borrower shall pay all expenses and closing costs including but not limited to recording costs, filing fees, title insurance premiums, hazard insurance premiums, and flood insurance premiums (if applicable) which are required by the Authorization For Debenture Guarantee, as well as attorney fees incurred, if borrower elects to obtain legal representation.

SBA Funding
The Borrower pays interim interest to the bank until the date of SBA funding. Colson Services Corporation, fiscal agent for the SBA, wire transfers funds directly to the bank, reducing the bank to its permanent first mortgage level. Disbursements of debenture proceeds shall be made no later than 12 months from the date of the Authorization For Debenture Guarantee, unless prior written consent of SBA extends this date. SBA funding occurs approximately 60 to 90 days after the TCM closing. The debenture rate and subsequent note rate will be established at that time.

SBA Loan Payments
The SBA Loan and the first mortgage loan are two separate loans; each loan has its own payments and requirements. The Borrower will make two payments each month - one to the bank, and one to the SBA. The SBA payment is collected by Colson Services Corporation via an automatic debit on the Borrower's account. After the debenture funding, the first SBA payment will be collected on the first day of the following month.