Existing Borrowers FAQs

Our experienced local staff at Alloy Commercial Capital formerly known as HCDC, is available to help borrowers with their questions and to comply with the terms of their loan. Please be advised, you must be a borrower or be able to prove that you are an authorized representative of the borrower to obtain loan information.

Many Alloy Commercial Capital SBA 504 borrowers have obtained second or third 504 loans to finance additional locations, expand an existing location, or purchase machinery and equipment. Subsequent applications are simplified since we already have an active file of information and your loan request can be processed with minimal of new paperwork. Connect today to find out about another 504 loan.
Our servicing agent is able to assist you with this. Please fill out the form below with your request.

We are happy to provide this information to you via telephone. You will be asked to provide us with the following Information: Loan number, Name of the Requester, Name of the Business, Phone Number, and e-mail address if applicable. 

SBA recommends that your payment be made through ACH. In the event your automatic debit is rejected you will be asked to wire in your payment. We are happy to assist you with the wiring instructions.

The wiring instructions are as follows:

Wells Fargo Bank, NA

420 Montgomery Street

San Francisco, CA 94104

– ABA#: 121000248

– Beneficiary Account #: 4000113241

– Beneficiary Account Name: SBA 504 Master Deposit Account

– Reference: Loan # _____________ (insert 504 loan # here)

– Borrower Name: __________________ (insert Borrower name)

Attn: SBA 504

– Amount to be wired: your loan payment amount. All payments received after the 15th of the month will be assessed a late fee of $100.00 or 5% of your loan payment, whichever is greater. Please direct questions via email to loanservicing@alloydev.org.

504 Loans are funded by way of a monthly bond sale on the secondary market which requires a slightly different payoff process than a typical bank loan. Partial prepayments are not accepted.

  • If you have an SBA 504 loan we can provide an estimated payoff amount to you for planning purposes.
  • Prepayments are made on the 3rd Thursday of each month.
  • Alloy Commercial Capital must have an eight-day written notice that the loan is going to be prepaid.
  • Please be advised that the SBA 504 loans are assumable, which would eliminate the need to pay the prepayment premium.
  • All payoffs are made by wire transfer.
  • A prepayment premium may apply please email your servicing agent at loanservicing@alloydev.org if you are considering loan payoff or a loan assumption.

According to the terms of your SBA 504 Loan Authorization you are required to insure your property for the full insurable value on a replacement cost basis. Evidence of property insurance (and flood insurance if required) must be provided and kept current for the life of the loan by the owner of the property.

U.S. Small Business Administration is to be listed as a second mortgagee or loss payee, worded as follows:

U.S. Small Business Administration

c/o Alloy Commercial Capital, ISAOA, ATIMA

1776 Mentor Avenue, Suite 100

Cincinnati, Ohio 45212

Please have your agent forward applicable certificates and/or evidence to Alloy Commercial Capital yearly and/or upon request.

Please direct questions to your servicing agent to loanservicing@alloydev.org.

The submission of annual financial statements is part of the loan commitment. Yearly tax returns are preferred. Please submit your annual financial statement (balance sheet and income statement) and or tax returns to our office upon annual completion or upon request. Should you file an extension with the IRS for your annual return, please forward a copy of the extension to Alloy Commercial Capital.

Please direct questions to your servicing agent to loanservicing@alloydev.org.

You, as a borrower, are responsible for paying the property taxes. No escrow account for property tax payments or impound account on the real estate has been induced with your SBA 504 loan. Please check with the County Tax Collector or Assessor in which your property taxes are due.
To comply with SBA requirements Alloy Commercial Capital may make field visits as necessary or when requested by SBA to review business operations and the condition of SBA collateral.
At the two-year anniversary of your loan funding, Alloy Commercial Capital will request current information on the number of employees at your company.

In some cases, a loan assumption may be more advantageous than prepaying a 504 loan. Assumption of a loan may be a way of transferring a better interest rate than current market rates and there are no prepayment premiums. SBA 504 may be assumed by a new borrower provided:

  • The value of the collateral is maintained at the same level as available to the SBA prior to the assumption
  • The third-party lender must concur with the assumption
  • In most cases the existing guarantors may be required to remain on the loan up to 12 months after assumption
  • A 1% assumption fee plus normal closing costs will be charged
SBA may subordinate the SBA 504 loan to a new third-party lender if the refinancing is on more favorable terms for the borrower and the borrower does not receive any funds from the refinancing (no cash-out), except for reasonable closing costs of refinancing. The term of the new third-party loan must equal or exceed the term of the original third-party loan. The SBA may also subordinate to a larger new third party loan if the loan proceeds will be used to improve the project collateral and the SBA’s collateral position remains the same or is improved by the transaction.
A deferment is a postponement of a payment to a later date without causing the loan to be considered late or in default. Deferments are used where it appears that it will assist the borrower in solving a temporary cash-flow problem. The SBA may approve up to six months (cumulative) of payment deferment or 20 percent of the original amount of the loan whichever is less. The borrower must reasonably project that it will bring current the deferred amount within five years after the deferment period.
On occasion, SBA will take additional collateral to support the 504 loan. The SBA will make a credit decision regarding the impact of the release prior to any action. There must be an indication that the remaining collateral is reasonable in relation to the outstanding loan balance and the release will not interfere with the operations of the business. The borrower should use the proceeds of the release for business purposes. The SBA rarely gives consideration to releasing business assets in order to provide funds for personal reasons.

Connect with your servicing agent today to get the answers you need.

Fill out our form or email us at loanservicing@alloydev.org for more information on your current loan.

“Alloy walked me through the SBA 504 loan process every step of the way, which I really needed since I had never purchased commercial real estate before. They also helped me out with a tricky leased land situation that helped pave the way for future commercial real estate purchases.”
Steve Dorgan
President, Wray Precision, SBA 504 Loan Borrower