What happens if I am late on my monthly payment?
- 504 loan payments are due on the first business day of each month. To avoid a late fee charge your loan payment must be posted by Colson Servicing Agent by the 15th of each month. For additional information contact HEDCO.
Can I make a partial payments or principal reduction payments?
- Partial payments or principal reductions are not permitted.
Does HEDCO check on the borrower’s occupancy requirement?
- As part of HEDCO’s dedication to providing exceptional customer service, HEDCO LDC will at random conduct periodic client visits. During the visit should it be ascertained the occupancy requirement is not being met, HEDCO LDC will discuss the situation with the client and/or lender. Remedies are either compliance with the occupancy requirement or the payoff of the 504 loan. Other remedies may be considered but not guaranteed on an exception basis and varies from case-to-case basis.
Can I request release of non-project collateral securing the loan?
- Release of other collateral besides the project property taken as additional collateral may be requested in writing to HEDCO LEDC. In general, release is based on reason for request, normally after 4 years of satisfactory operations and payment history. Updated financials will be required.