Sample Bank Letter Of Commitment printable pdf download

PLEASE PRINT ON YOUR COMPANY LETTERHEAD

Bank Letter of Commitment | SBA 504 program

Date

Lewis & Clark Certified Development Company

200 1

Avenue NW, Suite 100

Mandan, ND 58554

Attention:

Brent Ekstrom

Director of Commercial Lending

Re:

[Insert Name of Applicant]

Dear Mr. Ekstrom

[Insert Name of Lender] (“Lender”) has reviewed the application of [Insert Name of Applicant]

(“Borrower”) for a loan of $[insert total LOAN amount] to support a $[insert total PROJECT amount]

project. Lender is not in a position to meet Borrower’s request at this time because [insert reason, such

as, “the value of collateral is insufficient under our credit policy”]. To the best of Lender’s knowledge,

financing of the total project cost is not available at interest rates and terms prevalent in our community.

Lender, however, is willing to participate with Lewis & Clark Certified Development Company in the

SBA 504 Loan Program to benefit Borrower. In this regard, Lender is willing to make a loan in the

principal amount of $[insert amount of Third Party Loan] [insert % of Project Cost] which will have an

interest rate of [insert complete interest rate, not just the initial rate] (“Third Party Loan”). The Third

Party Loan note will be for a term of [insert term] to be amortized over [insert amortization period]. In

addition, SBA approval of this Third Party Loan is conditioned upon the receipt by SBA from Lender of a

one-time participation fee equal to one-half of one percent of the principal amount of this Third Party

Loan secured in a senior lien position to that of SBA’s 504 Loan.

The Project is located at [physical address of Project Property]. Lender’s commitment to make the Third

Party Loan is contingent upon the collateral and guarantors listed below:

List Third Party Lender’s collateral requirements

List guarantors for Third Party Loan

Lender also is willing to provide an interim loan in the amount of $[insert amount of Interim Loan]

[insert % of the Project Cost] (“Interim Loan”) to be repaid from the proceeds of the 504 Loan. The

Interim Loan is to be secured by a [insert lien position] on the collateral.

Sincerely,

Name of Lending Official

Title

Sample Bank Letter Of Commitment