What actions can Evergreen Business Capital take after the 504 loan is funded and what needs SBA approval?

Evergreen's Loan Servicing Department manages Evergreen's loan portfolio after funding until the loan matures, or is paid off. They communicate with the SBA & Colson Services on behalf of borrowers and lenders.

According to Edna Peterson, Evergreen's Servicing Manager, many routine tasks can be performed without SBA approval including preparing ACH changes and prepayment estimates.

Evergreen does need the SBA involved for actions such as:

• Release of secondary collateral
• Substitute secondary collateral of equal value
  (not project property)
• Subordination to third party senior lien with no increase
  (reasonable/customary closing costs are allowed)
• Approve change in borrower's form of organization
  (No release of any existing obligors/guarantors)
• Defer principal and/or interest up to 6 months & re-amortize loan up
  to 5 years for qualified borrowers
• Subordination to prior lien with increase (cash-out)
• Cash must be used to improve project property or purchase equipment
• Release of Guarantors
• Assumption by a qualified business

Call our Loan Servicing Department at 800.878.6613 with your questions.