In this video, Beau Eckstein explains how debentures work in the context of SBA 504 loans. Many people are confused about the role of debentures in this type of loan. He clarifies that both senior and junior debt is provided by the bank, with the latter being eventually guaranteed by the SBA.

The bank funds the entire loan as a construction loan in the beginning, and an interim loan is provided to cover the CDC piece until construction is complete. Beau offers to help those who are interested in SBA financing or any other type of financing and encourages viewers to book a call with him.

Beau also explains that debenture funding only occurs once a month, usually in the middle of the month, and can take a while to be disbursed. He emphasizes that this is a common point of confusion for many people and hopes to clarify the process.

If you'd like to meet with Beau to talk financing, book a call here
( http://bookwithbeau.com/ )