Sample Bank Letter of Commitment
SBA 504 Loan Product
Name of 6BCC contact
Six Bridges Capital Corporation
200 River Market Avenue, Suite 400
Little Rock, AR 72201
RE: Name of Operating Company Applicant
Address, City, State
Dear [name of 6BCC contact]:
[Insert Name of Lender] has reviewed the borrower’s application for a $ [insert total project amount] loan for full project financing for the [insert project components such as purchase, improvements, construction] of the [real estate and/or equipment] located at [insert address, city, state]. This Bank is not in a position to meet the borrower’s request for full project financing at this time as [insert reason, such as, “the loan maturity exceeds our credit policy”]. To the best of our knowledge, financing of the total project cost is not available at interest rates and terms prevalent in our community.
[Insert Name of Lender], however, is willing to participate with Six Bridges Capital Corporation in the SBA 504 loan product to benefit [Insert Name of applicant].In this connection, the Bank’s $[insert amount of TPL loan] [insert % of Project Cost] would have an interest rate of [insert complete interest rate, not just the initial rate]. The note will be for a term of [insert term] to be amortized over [insert amortization period].
The project is located at [physical address of project property]. The bank commitment is contingent upon the collateral and guarantors listed below:
List third party lender collateral requirements
List guarantors for third party lender loan and any assignment of life insurance
In addition, [Insert Name of Lender], is willing to provide an interim loan in the amount of $ [insert amount of interim loan] [insert % of the Project Cost] to be repaid from the proceeds of the debenture sale. This interim loan is to be secured by a [insert lien position] on the subject real estate. In addition, the SBA approval of this loan is conditioned upon the receipt by SBA from Bank of a one-time participation fee equal to one-half of one percent of the principal amount of the Bank loan attributable to the 504 project that is senior to SBA. [Optional: This is conditioned on the final Bank approval as well as the approval by the Small Business Administration.]
Name of Lending Official