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[[https://www.sba.gov/funding-programs/loans/504-loans|SBA 504 Loans]]

Prompt used in Anthropic

can you help write a bpmn model for this Overview
The SBA 504 loan program is a small business financing option that provides long-term, fixed-rate financing for major fixed assets like real estate and equipment.
Structure

First Mortgage (50%): Conventional lender
Second Mortgage (40%): CDC/SBA portion
Down Payment (10%): Business owner

May increase to 15% for new businesses
May increase to 20% for special-use properties



Step 1: Prequalification

Verify business eligibility:

For-profit business
Net worth under $15 million
Net income under $5 million after taxes
Owner must occupy 51%+ of property
Project must create/retain jobs or meet public policy goals


Gather required documentation:

Business financial statements (3 years)
Tax returns (3 years)
Business plan
Personal financial statement
Real estate information or equipment specifications
Project costs breakdown



Step 2: Application Process

Identify and apply with a Certified Development Company (CDC)

CDC is a nonprofit organization certified by SBA
Will assist with application package
Helps structure the deal


Secure conventional lender for first mortgage

Usually a bank or credit union
Must provide minimum 50% of project cost
Conducts own underwriting process


Complete CDC/SBA application package:

SBA Form 1244
Business organization documents
Environmental studies
Real estate appraisal
Equipment appraisals (if applicable)
Construction plans (if applicable)



Step 3: Underwriting

CDC Review

Analysis of business financials
Verification of job creation/retention
Project feasibility study
Credit analysis


SBA Review

Final approval authority
Reviews CDC recommendation
Issues authorization if approved



Step 4: Closing Process

First Mortgage Closing

Conventional lender closes their portion
Funds held in escrow


CDC/SBA Debenture Closing

CDC prepares closing documents
SBA reviews and approves
Debenture sale scheduled


Funding

Debenture sold to investors
Funds disbursed
Project completed



Step 5: Post-Closing Requirements

Ongoing Reporting

Annual financial statements
Tax returns
Insurance certificates
Job creation verification


Compliance Monitoring

CDC annual inspections
Occupancy requirements
Job creation/retention verification
Insurance maintenance


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