How to Prepay
If you would like to make prepayments on an outstanding loan, please contact us in writing via email, fax, letter, or by phone. On Page 5 of your loan authorization, the process is laid out as follows:
“If Borrower prepays during the first half of the stated term, there will be a prepayment premium, calculated by applying a declining percentage of the Debenture interest rate to the out standing principal balance of the Note. A schedule of the dollar amount of the premium will be provided after the sale of the Debenture.
The Borrower may prepay the Note or Lease in full. Partial prepayment is not allowed. Borrower must pay the sum of:
- all principal and interest payments, servicing-agent fees, and SBA guarantee fees up to and including the date of the next semi-annual debenture payment date;
- all CDC servicing fees that accrue before Borrower prepays;
- all late fees incurred before Borrower prepays;
- all expenses incurred by CDC for which Borrower is responsible;
- the balance owing on the Note as of the next semi-annual debenture payment date; and
- any prepayment premium required under the Note and Debenture.
To prepay, Borrower must give prior written notice to the CDC according to the terms of the Note.”
Joe is a Senior Vice President at BDC Capital. He oversees the Capital Access Program (CAP) and the Community Investment Loans. Joe is also portfolio manager for SBA 504 loans portfolio through our affiliate CDC New England. Joe began his banking career at Mutual Bank for Savings in 1981. After leaving Mutual Bank, he joined Shawmut Bank, N.A., in 1987 and subsequently became a Branch Manager and Business Retirement Plan Specialist. He then served from 1992 to 1997 as a Business Development Officer at BankBoston before joining BDC Capital. Joe was educated in London, England at the Hackney College of Further Education.
Matt Brothers, Vice President, focuses on new business development in the areas of Worcester and Western Massachusetts, Southern New Hampshire, Southern Vermont and Northern Rhode Island. Matt has over 15 years of commercial lending experience, most recently serving as a Commercial Lender at Rockland Trust. Prior to that Matt spent time as a Commercial Banker at both Bank of America and Citibank. Matt attended Brandeis University where he earned his B.S. in Economics. He lives in Lunenburg, MA with his wife Laura and twin boys Wesley and Charlie. Matt enjoys spending time with his family, being outdoors and volunteering.
In addition, after you have sent your letter, email, or fax, we recommend that you call Joe O’Garro to confirm its receipt.
The best time to pay off your loan are before your semi annual debenture dates which will help to avoid additional fees. You can confirm these dates with Joe O’Garro.