How we work with you
The initial assessment is conducted with the Borrower to discuss the project and SBA loan parameters. The borrower shall complete and provide all documentation required by TCM.
TCM Board Approval
TCM staff performs loan underwriting and obtains loan approval from the TCM Board of Directors within approximately five to ten business days.
SBA Loan Approval
TCM submits Board-approved loans to the SBA – Sacramento Office for final approval, which is generally obtained within approximately five business days.
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 agreement with the Borrower and obtains appropriate signature(s).
The First Mortgage Lender provides the interim financing for the project, initially advancing both the Lender funds and SBA funds to the Borrower.
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 concurrent with the Lender’s closing when possible, or as soon as possible thereafter.
The Borrower pays interim interest to the lender until the date of SBA funding. Wells Fargo Trust Services, The Central Servicing Agent for the SBA, wire transfers funds directly to the First Mortgage Lender, reducing the Lender to its permanent first mortgage amount. 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 lender, and one to the SBA. The SBA payment is collected by The Central Servicing Agent via an automatic debit on the Borrower’s account. After the debenture funding, the SBA payment will be collected on the first business day of the month thereafter.