SBA
Amortization is 25 years.
What is the length of amortization for SBA Real Estate Loans?
1.15
What is the global cash flow requirement for loans under $2.5MM?
1.15
What is the cash flow requirement for business lines of credit?
Developer and Investor
What is the meaning of D&I?
125% of New and Used Equipment
What does Equipment Finance do?
504 is comprised of real estate only, while a 7a loan can include multiple pieces of collateral.
What is the difference between SBA 504 and 7A programs?
Real Estate Contract
What is a document needed to submit a real estate purchase request?
80% (typically) of receivables 90 days or less.
What is the percentage we can lend against A/Rs?
Strip Malls, Industrial Warehouses, Multi-Family, Mixed Use, Retail.
What type of collateral is eligible for a D&I loan?
$200,000 and $750,000
What are the approval amounts for a one page app?
SBA guarantee fees for loan amounts at $1 million or less.
What type of fees are being waived by SBA?
Environmental Client Questionnaire and Environmental Inspection form.
What are two documents to start on early in the process of a real estate purchase request?
50% against most inventory.
The rate of return on a real estate investment property based on the income it generates.
What is a cap rate?
Personal Guarantee is standard, but Corporate Only guarantee is also available.
What kind of guarantee does EF or MVS require?
75% of the start up project.
How much can SBA finance on a start up loan?
3 to 6 months of payments post transaction liquidity.
What is the amount of liquidity needed after the down payment?
Prime Rate +
What interest rate index do we use for lines of credit?
Business Equity Lines of Credit (BELOCs) are only allowed as a first lien or as a second lien position behind a U.S. Bank first lien position.
$162,000 for both EF and MVS
What is the amount we financed in 2023?
They must have industry experience, have outside income to help support themselves, and have injection of 25% for the project.
What are the requirements a borrower must meet to qualify for a start up loan?
1.15 (or 1.40 if high risk) for the operating company on it's own.
What is the required FCC coverage when the request is greater than $2.5MM?
To be able to access working capital in a revolving manner(borrow and repay).
What is primary function of an operating line of credit?
25% of the property's income coming from an IRAM industry causes the property to need to meet 1.40 cash flow coverage.
Seasonal Payments, Quarterly Payments, Finance Agreements, Lease Options, same day approvals.
What are some features that EF and MVS provide that differ from conventional financing?