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Big Sky Finance October 2020 Newsletter Inquiring Minds Want to Know!

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October 2020 Newsletter
Inquiring Minds Want to Know!
Why does Big Sky Finance request supporting documentation during the application and closing process?
Answer: This is because the investors that make the SBA 504 loan program happen are relying on the SBA and Big Sky Finance to analyze and approve quality projects.
The SBA 504 loans are funded through the sale of government guaranteed debentures on the secondary market. The investors willingly purchase these debentures knowing they will see a good rate of return since SBA guarantees timely principal and interest payments. The SBA relies on Big Sky Finance to ensure the loan is approved and closed with complete and accurate documentation in accordance with their required terms and conditions. Big Sky Finance, the lender and the small business all must make a variety of certifications in the process. These certifications can only be supported by having the appropriate documents in hand. You can’t certify to something you haven’t seen!
Why doesn’t the SBA 504 loan fund immediately after closing?
Answer: This is because of 2 things: 1) the volume of loans submitted for funding and 2) the complexity involved with selling debentures to investors takes time.
After SBA 504 loan closing, the loan is ready for funding. Each month the loans are pooled with several hundred loans across the nation. In order to manage this kind of activity, schedules must be set. There is a scheduled date each month when the closed loans must be received by SBA. The SBA reviews the closed loan packages and approves them for funding the following month. The funding process then involves a servicing agent, fiscal agent, underwriters and trustees to issue the debentures and fund the loans.
Why use Big Sky Finance?
Answer: Because we are located in Montana and our 4 person staff has over 55 years of making SBA 504 loans!
It takes time and effort on the part of the lender and the small business to work through the SBA 504 loan process. Big Sky Finance has the experience to guide you through the process and with our expedited closing status, we have quicker turnaround times with the SBA. By using Big Sky Finance and the SBA 504 program to fund their project, borrowers benefit by preserving their working capital with minimal equity injection while obtaining long term, fixed rate financing. Lenders mitigate their risk with a low loan to value and a first lien position.
National Women’s Small Business Month takes place each year during the month of October. This is a time to recognize the myriad achievements of our country’s female entrepreneurs, and the positive impact they are making on jobs and the economy.
We want to take this moment to recognize all of the amazing women entrepreneurs in Montana for their incredible contributions to our small business community. Thank you!
Your Big Sky Finance Team
Billings
222 North 32nd Street
Suite 200
Billings, MT 59101
406-869-8403
Helena
825 Great Northern Blvd
Suite 301
Helena, MT 59601
406-441-5447

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