SBA Form 2288 Interim Lender Certification

SBA Interim Lender Certification

Interim financing is a short-termed loan, often used while the organization is making arrangements for longer-term funding. If the interim loan is used in connection with the SBA CDC/504 loan, the SBA Interim Lender Certification is completed within 60 days prior to debenture funding. The conditions on the SBA 2288 Form will vary depending on whether the Interim Lender is the same as the third-party Lender or different. Also, the CDC can add additional certifications or agreements on the form, if necessary.

The SBA CDC/504 is a loan program designed for small businesses. The 504 loan program provides long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization. To qualify for this program, the business must be based in the United States, must be for-profit and meet all of the SBA small size requirements. The eligible business should have a tangible net worth not more than $15 million, and an average net income of $5 million or less after federal income taxes for the preceding two years prior to application. Non-profit, passive or speculative companies are not eligible for this loan program.

504 loans are made available through Certified Development Companies. CDCs are non-profit corporations regulated by the SBA. 504 Loans are typically structured with SBA providing 40% of the total project costs, a participating Lender covering up to 50% of the total project costs, and the Borrower contributing 10% of the project costs. Under certain circumstances, a Borrower may be required to contribute up to 20% of the total project costs.