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504 Loan | Wellmark Mezzanine Fund
504 Loan
Q Does the loan process take a lot of time?
A No, it generally takes 2-3 weeks from the time we get the completed application
Q Is the 504 loan assumable?
A Yes, provided company qualifies from credit standpoint
Q Is the application extensive?
A The 504 application requires little more than is required by the normal lender
Q Is there a prepayment penalty?
A Yes, but only for the first half of the loan
Q Aren’t significant restrictions with all SBA loans?
A Not necessarily. The 504 loan has few management restrictions
Q Aren’t SBA loans just for start-up or high-risk businesses?
A Some are, but the 504 is targeted to existing businesses who need to expand
Q Can a start-up business qualify?
A Yes, however, the down payment requirement increases to at least 15%
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Wellmark Mezzanine Fund
Q Is this very expensive?
A The terms are more costly than conventional loans, but less than
typical mezzanine financing
Q Will I be giving up ownership in my business?
A No. The loan does not require stock ownership or stock conversion privileges
Q What if my company doesn’t have extra available collateral?
A The loan requires a junior lien of available assets only
Q Can my company pay off the loan early?
A Yes, in fact it is encouraged with increasing “success” fees payable to Wellmark as the loan approaches maturity
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