GTCC promises to help you make the most out of your funding after your loan has been secured. We are committed to providing our borrowers with assistance for any post-loan services you might need. Please contact our Servicing Department today with questions, concerns, and feedback, and we’ll be more than happy to help you with:
- Subordinations (refinance of first lien mortgage)
- Prepayment of loans/loan payoff
- Monthly payments for your SBA loan
- Guarantor releases
- Collateral releases
- Changes in your ACH debit account
- Payment deferrals
- Interest statements
- Loan activity
Change to General Payment and Loan Servicing FAQ
What is Wells Fargo Corporate Trust Services?
Wells Fargo Corporate Trust Services is the Central Servicing Agent (CSA) for all SBA 504 loans. The CSA is responsible for processing loan payments and handling accounting for every SBA 504 loan nationwide.
Please note that Wells Fargo Corporate Trust Services does not provide any direct client services. All inquiries regarding your SBA loan should be directed to GTCC and will be handled by our Servicing Department. Please do not attempt to contact Wells Fargo Corporate Trust Services.
When is my loan payment due?
Your loan payment is due on the first business day of every month. The terms of your loan agreement require the payment to be made by Automated Clearing House (ACH) transfer from your bank to Wells Fargo Bank, N.A. Corporate Trust Services, also known as the Central Servicing Agent (CSA). If your payment is rejected when the ACH transaction occurs, you may wire the funds as an alternative. To avoid any late fees, your loan payment must be posted at Wells Fargo Bank, N.A. Corporate Trust Services by the 15th of the month. To discuss this further, please contact our Servicing Department.
How are my loan payments made (does it have to be by automatic debit)?
Loan payments must be processed via an automatic debit or wire transfer. In the closing process with GTCC you filled out a form and provided a voided check indicating the account from which your loan payments will be automatically debited.
Can I change the account my loan payments are debited from?
Yes, you may change the account from which your loan payments are automatically debited. A new ACH debit form along with a voided check for the new account is needed. Both the completed ACH form and voided check must be received by our office no later than the 10th of the month in order for the new account to be used the following month for the automatic debit. Please contact our Servicing Department to get a new ACH Debit form.
What is my loan balance?
You can check your current loan balance at any time by referencing the Amortization Schedule we provided you with after your loan funded. Your amortization schedule is a breakdown of your monthly loan payment for the life of your loan. This is provided to you in lieu of monthly statements. However, you can request your current loan balance or new Amortization Schedule by contacting our Servicing Department.
What is the interest rate on my loan?
The “Effective Rate” is referenced in the Notification of Funding email we send you after your loan funded. To request another copy of the Notification of Funding email, please contact our Servicing Department.
How much interest did I pay last year?
Each year, during the first half of February, GTCC mails out a copy of the Annual Statement to every borrower. The Annual Statement outlines the year-end information, including the loan balance as of 12/31/YEAR, the yearly interest paid, and yearly fees paid. If you didn’t receive a copy or need to request another copy, please contact our Servicing Department.
How do I get a copy of the IRS form 1098 for my loan?
IRS form 1098 is issued only to individual borrowers; they are not issued to Corporations, LLCs, Enterprises, Trust or Associations. These forms are mailed directly from Wells Fargo, the Central Servicing Agent for SBA, at the beginning of February. If you didn’t receive a copy or need to request another copy, please contact our Servicing Department.
How can I update my mailing address or other contact information?
You can update your contact information by contacting our Servicing Department. Please include your phone/fax numbers, email address and postal address.
General Servicing Actions FAQ
Do I need to submit proof of paying my property taxes each year?
GTCC monitors each year in April to ensure that all taxes and assessments are paid in a timely manner. If unpaid, it could result in senior liens against the collateral and lead to tax foreclosure sale. We will contact you regarding any unpaid balances to confirm the method and estimated timing for payment in full. Should you wish to submit proof of Property Tax Payment please send it to: firstname.lastname@example.org
Do I need to submit changes or renewals of Insurances?
GTCC must at all times have a current copy of your hazard insurance on the building and/or business personal property such as equipment. We update our files annually, and will contact you or your agent to request proof of insurance. At that time, we also ask that your insurance agent include the following information on the proof-of-insurance certificate:
- The following verbiage must appear on the ACORD: “Full Replacement Cost” and “10-day written notice of cancellation”
- Borrower’s name, loan number, property address, policy number and expiration date.
- CDC and SBA named as 2nd Mortgagee and/or Loss Payee as follows:
2nd Mortgagee and Loss Payee
SBA/Greater Texas Capital Corporation
3600 Old Bullard Rd., Suite 403
Tyler, TX 75701
Please contact our Servicing Department if you make any changes to insurance provision.
Our business had a fire/flood/other disaster. Who do I contact about that or anything else regarding insurance on my building or equipment?
Please contact our Servicing Department.
I received a check from my insurance company for damage to my building or equipment and SBA and/or GTCC is listed as a Payee on it what do I do?
When the CDC or SBA is named as a loss payee on a hazard insurance policy, the proceeds should not be released unless Supporting Documentation is also submitted with the request and verifies that the insured collateral has been properly repaired or replaced and that no construction or repair related liens have been filed against the property, particularly if the insurance check is for $100,000 or more. Supporting Documentation are items such as paid invoices, receipts for replacement of fixtures or equipment should be forwarded to the Servicing Department.
If you are unable to make the repairs prior to the release of proceeds then you will need to contact our Servicing Department for further options.
Do I need to submit business financial statements each year?
Yes. As part of the Loan Agreement, borrowers need to submit financial statements each year. We request each year filed copies of Previous Year Tax Returns, Current Business Statements and/or Current Personal Financial Statements for the EPC (Real Estate Holding Co.), Operating Company and all Guarantors.
Please submit your financials via email to email@example.com, or by mail to 3600 Old Bullard Rd., Ste. 403, Tyler, TX 75701 to the attention of Servicing Department. For any questions please call 888-923-2504, Option 2 and ask to speak with someone in our Servicing Department.
How do I payoff my SBA 504 Loan?
Prepayments on SBA 504 loans are made on a monthly basis. If you wish to pay your outstanding loan balance, you need to contact the CDC in writing outlining your request. CDC generally requires 45 days written notice from the borrower to establish a payoff date; prepayments are only scheduled for the 3rd Thursday of each month.
Please provide the following information in your written notice to CDC:
- Month and date you would like the loan to be paid off (reminder – loans can only be scheduled for a 3rd Thursday and require 45 days’ notice)
- SBA loan number(s) and property address
- Your contact information, including phone number, email address and/or fax number
- New mailing address if you will be moving from the property address referenced above
- Escrow or Bank contact information, if applicable
- Signed and dated by all Guarantors.
What if I am having trouble making my payments?
Borrowers who have trouble meeting their debt obligations for their SBA 504 loan should contact our Servicing Department as well as their First Lien Lender as early as possible to discuss the situation and options that may be available to assist them. In our experience we have found that keeping communication channels open yields the best results for the borrower as well as the lenders.
What is a loan deferment?
When borrowers are unable to properly service their debt out of the cash flow of the business without relying on outside sources of funds, the borrower should contact our Servicing Department and discuss the issue in detail and options that may be available.
We will require you to provide GTCC with financial statements (tax returns, personal financial statements, interim business financials, and other requested information). If after thorough review and analysis and evidence supports that the business is operating with historically lower revenues and tighter cash flow, a loan deferment request may be approved by GTCC and sent to the SBA for Approval.
Upon approval by the SBA, a deferment typically provides a lower monthly payment amount to provide cash flow relief. The principal and interest obligations remain in force, but the payment amount is adjusted for the “deferment period”. When that period ends, the “catch up period” commences and the monthly payments increase. The full amount of the deferment must be repaid within a period of 5 to 10 years (exceptions to the rule), or no later than the end of the existing term of the loan if the loan has a maturity date of less than five (5) years remaining.
For more information regarding deferments, contact our Servicing Department.
Why and when do we require site visits?
Site visits are performed for different reasons in some cases they are mandatory by SBA due changes to a loans status such as, deferment, default of payments or in the case of liquidation. In other cases they are routine and performed as part of our yearly risk rating process.
GTCC staff will generally perform most site visits within a 50 mile radius of our office, but often rely on third party vendors to perform site visits for greater distances. We contract with a company called, Collateral Specialist Inc. or (CSI), they have been industry leaders for 18 years providing sites visit services for Certified Development Companies. For information about CSI you can visit their website at www.csina.com
In both cases we generally request an appointment prior to perform a site visit.
Can I refinance my SBA 504 loan?
SBA does not allow borrowers to refinance an SBA 504 loan with another 504 loan. However the First Mortgage can be refinanced so please call our Servicing Department to discuss the Approval Process to refinancing your First Mortgage and gaining the proper Subordination Approval.
Will SBA subordinate if the first mortgage portion of the 504 loan is refinanced?
Yes, SBA is willing to subordinate not only to a new lender but also to new debt in a first lien position, given the new debt meets certain criteria. If you would like more information about subordination to a new first lien lender or subordination to additional funds, please contact our Servicing Department.
I would like to take an additional loan or line of credit do I need to tell SBA?
Yes, SBA will want to acknowledge what is termed as a Junior Lien, in other words a loan that will be behind SBA in lien position. Contact our Servicing Department and they can let you know what documentation SBA will request for Acknowledgement.
Can an SBA 504 loan be assumed?
Yes, SBA 504 loans are assumable, subject to credit approval. There is a 1% assumption fee, and the original guarantors cannot be immediately released. For more information contact our Servicing Department.
I have been advised to add a Real Estate Holding Company, or I would like to change the name of my Franchise?
Any changes to the Entity Structure of your loan or changes to the name of your company(s) can have an effect on SBA’s lien position. Prior to changes being made, you will need to seek approval from the SBA. Some changes are simple but others can be quite complex requiring new entities to assume the responsibility of the note so please contact our Servicing Department for further assistance.
What should I do if I am contemplating selling my business?
Selling your business has direct consequences to your loan. Since every sale is different, please contact our Servicing Department. We will talk with you about your situation and help you figure out what needs to be done. Any changes in ownership whether it is a partial, full, outright sale etc., must be approved by the SBA in advance.
What do I do if I want to sell a portion of my land or a piece of equipment?
Release of Liens on land or equipment are subject to approval by SBA and require certain criteria to be fulfilled. For more information please contact our Servicing Department.
What do I need to do if I have changes to the Guarantors for my loan?
Changes to Guarantors on a loan can include Release, Substitution, Addition or Death of a Guarantor. SBA has very specific criteria for each and when applicable, requires prior approval so please contact our Servicing Department for further information.
Intensive Servicing Actions FAQ
Why have I received a certified letter regarding a Technical Default?
Technical Defaults are non-monetary defaults when requirements set forth in your Loan Documents have not been kept. These include such requirements as but not limited to, providing current evidence of Hazard, Personal Property, Flood, Liability and/or Life Insurance coverage, not paying Property Taxes, providing evidence of repairs to damaged collateral or not providing annual financial statements. Should you receive a letter regarding a Technical Default please contact our Servicing Department to resolve the issue.
If I default on my loan, what will happen?
When you received your SBA loan, you agreed to repay the entire balance. Most SBA loans have several “obligors” or “guarantors” that signed the note. Each obligor or guarantor is solely responsible for the entire outstanding balance of the loan. For example, if two business partners secured a loan for $500,000 and the loan defaults, both partners are responsible for the outstanding balance until the loan is paid off. The debt obligation is not divided among responsible parties. If the debt is not repaid or compromised, the loan file is referred to SBA and then to the U.S. Department of Treasury (DOT).
The SBA has the right to impose Administrative Wage Garnishments on all parties until the balance is paid. DOT has the right to withhold future income tax refunds, social security benefits, veteran benefits and other means of collection available to them, including legal action until the full balance of the loan is repaid. These actions may be imposed on all obligors and guarantors on the note. Additionally, the loan default is reported to all credit agencies which impacts credit scores and ability of obligors and guarantors to secure conventional and SBA financing in the future.
What is a foreclosure?
When a borrower does not pay their first lien lender as agreed in their loan note, the lender has the right to sell the property without the borrower’s consent through a foreclosure process. If the property is sold at a foreclosure sale for a value less than what the borrower owes on the property, the borrower will remain liable for all outstanding loan balances owed to junior lien holders. When a property is foreclosed on the borrower typically no longer has rights to the property (depending upon the type of foreclosure action filed). In addition all guarantors remain liable for any outstanding balance as well. GTCC strongly recommends that borrowers work with their lenders to avoid this situation as it has long term credit implications that will impact their ability to conduct business for many years.
What can I do to avoid these serious issues?
We suggest that you contact GTCC’s Servicing Department and your first trust deed holder (bank) as early as possible and work collectively toward alternatives to default and foreclosure. GTCC has the right to work with all debtors on their SBA 504 loan toward a warranted repayment strategy or compromise which is then presented to the SBA for their consideration and is formally approved or denied. We have successfully completed justifiable loan deferments as well as long term repayment strategies on outstanding loan balances after short sale or foreclosure, which are manageable for borrowers and allows them to fulfill their loan obligation without impacting their long term credit.
GTCC has found over and over again that the earlier a borrower, obligor or guarantor informs us of their challenges – the better the options available for resolution. Lenders and borrowers enter into debt obligations in good faith and the extension of credit is based on the promise by borrowers to repay. It is important borrowers act in good faith when negotiating solutions with your lenders as this allows the lenders to review all repayment options at borrower’s disposal. Keep in mind lenders have the same objectives a borrowers does – to resolve the matter in a respectful and expeditious manner to the satisfaction of all parties.