9461 Charleville Blvd, Suite 346
Beverly Hills, CA 90212
Phone 310-413-4431

Investment Loans | Owner User Loans | SBA 504 Loans | SBA 7 (a) Loans | Multi Family | B&I Loans

SBA 504 Loans
Premier Commercial Lenders participates in the SBA's 504 loan program. This program is for the purchase of fixed assets such as commercial real estate and machinery and equipment of a capital nature, which are defined as assets that have a minimum useful life of ten years. Proceeds can not be used for working capital.

Loan Details

Loan Purpose
  • Proceeds can be used to purchase, build or renovate owner occupied commercial real estate and for machinery and equipment.
Loan Amount
  • Total loan amount up to $10,000,000 split into 2 parts.
    1. Bank Conventional First Mortgage Loan: Up to $6,000,000
    2. SBA 504 Debenture/Second Mortgage Loan: Up to $4,000,000
Time to Close
  • Commitment Letter within 3 days of completed application!
  • Closing within 30 – 45 days of signed commitment letter.
Loan To Value
  • Up to 90%.
Interest Rate
  1. Bank Conventional First Mortgage Loan – Adjusts monthly based on spread over 30 day LIBOR.
     

  2. SBA 504 Debenture/Second Mortgage Loan – Fixed rate as set by the SBA for the term of the loan.
     

  3. Bank Interim Interest Only Loan – Adjusts monthly based on spread over Prime. (Interim loan provided by Bank to cover time between loan closing and SBA 504 funding of debenture).
Term
  • Bank First Mortgage Loan is one of our Owner User Products. 
  • SBA 504 Debenture/Second Mortgage Loan has a term of up to 20 years for commercial real estate, 10 years for machinery and equipment, fully amortizing.
  • Bank Interim Loan has a term of up to 180 days.
Prepayment Penalty
  • Prepayment penalties will apply.
Fees
  • 1% origination fee on the Bank First Mortgage loan.
  • 1% origination fee on the Bank Interim loan.
  • CDC/SBA fee on the SBA 504 Debenture/Second Mortgage Loan is set by the CDC/SBA
Collateral
  • Loan must be fully secured by commercial real estate or a combination of commercial and residential real estate.
Recourse
  • All principals who own 20% or more of the business are required to provide a full guarantee. Principals or key managers owning less than 20% may be required to provide a guarantee on a case-by-case basis.
  • The guarantee of affiliated companies may be required based on the percentage of ownership of the affiliate and the borrower's relationship with the affiliate.
Debt Service Requirements
  • A minimum projected debt service coverage ratio of 1.25 times is required.
Industries
  • Loans can be made to all for-profit businesses except those that do not meet SBA eligibility requirements. These are primarily firms involved in real estate investment/speculation, gambling, adult entertainment, lending money and pyramid sales schemes. Firms involved in nuclear waste, utilities, natural resource development, fishing vessels, biotechnology and internet technology are also excluded from eligibility.