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 losses in '09, '10 or 2011, but are now profitable.
Basically, you must be able to demonstrate that your business has recovered.
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.
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: Only with a major business expansion - please call for details as SBA is no longer allowing refinances for business debt consolidation under this program, athough the SBA 7a program allows both that and the financing of business expenses and working captial.
Click the following link for more info on a refinance with businesss expansion via the 504: SBA 504 Refinance
Please contact us at 1-800-414-5285 for more detailed information.