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.
- Bank Conventional First Mortgage Loan: Up to $6,000,000
- 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
- Bank Conventional
First Mortgage Loan –
Adjusts monthly based on
spread over 30 day
LIBOR.
-
SBA 504 Debenture/Second Mortgage Loan – Fixed rate as set by the SBA for the term of the loan.
- 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.
