SBA 504 "A Minus" Loan Program For Businesses That Had Losses, But Have Recovered
(New) SBA Program for "A-" Loans and Other "Story" Transactions
We are offering a new program for business owners (with commercial buildings) who have returned to profitability after the Recession.
The program is ideal for those who had a previous loss in '08, '09 or 2010, but had a good 2011 and are now profitable.
Basically, you must be able to demonstrate that your business has recovered.
Target Markets
This is a Portfolio Program for SBA 504 eligible business looking to finance their commercial building(s). Eligible businesses need to occupy at least 51% of the commercial space in their building.
It is ideal for those needing to refinance a Hotel Loan or an Assisted Living Facility and it can also be used for acquisitions.
The program is offered through a private lender and it can be closed quickly - approx 30 to 45 days.
The first mortgage rate is typically based on the following:
- Floating rate of Prime plus 2% to 3%
- 3 year fixed
- 5 year fixed
The second mortgage is a "regular" 504 20 year fixed rate that carries a below market rate so the blended rate is quite good. (There is a slight premium of approx .25 to .30% on refinance transactions).
Must Be 504 Eligible
The loan must be SBA 504 Eligible which means for a refinance you must meet all of the other 504 refinance requirements.
Click here for a complete rundown of eligibility for a refinance: SBA 504 Refinance.
Basic Eligibility:
Credit scores: Technically no minimum score, but prefer a score of at least 600 (with Letter of Explanation regarding derogatory accounts)
Loan To Value : Up to 90% (50% first mortgage/40% second).
Max Loan Amount: $12 million
Improvements/Renovations/Upgrades: Allowed for Acquisitions, but work must be completed in 120 days.
Tax Returns/Financials: Recent business tax returns required. (Borrower prepared YTD financials OK).
Refinance Eligibility: SBA is now allowing refinances that include business debt consolidation and the financing of business expenses/working captial.
Click here for full refinance requirements: SBA 504 Refinance
Please contact us at 1-800-414-5285 for more detailed information.
