SBA 504: Refinance Now Possible

Effective immediately, the SBA 504 program can be used in certain situations to refinance existing debt. The key eligibility requirements are summarized below:

1. The 504 project must include an expansion component. This means that we can’t look at refinancing an existing loan unless the project also includes the acquisition, construction or improvement of land, building or equipment by the small business.
2. The existing debt is collateralized by fixed assets and must also collateralize the SBA 504 loan.
3. The amount of debt to be refinanced may not exceed 50% of the project cost of the expansion. The amount of the loan(s) to be refinanced would be added to the total project and then we would structure the deal with the normal 50/40/10 split between bank/SBGC/borrower. The equity requirement would be higher for new businesses or special-use properties.
4. The refinancing will provide a substantial benefit to the borrower when prepayment penalties, financing fees and other financing costs are accounted for. The SBA will require a 10% reduction in the monthly installment in order to qualify.
5. The 504 financing must provide better terms or interest rate than the existing debt.
6. The borrower must be current on all payments due on the existing debt for not less than one year preceding the date of refinancing.
   

This is a permanent change to the 504 program and was included as part of the American Recovery and Reinvestment Act of 2009 to promote economic recovery.

For more information about the 504 program and other business financing programs give us a call at 863-298-8900. For detailed information or a specific quote on a loan scenario, give us a call at: 863-298-8900 or 813-833-3132 Or to fill-out a quick loan scenario Pre-Qualification form visit: http://commerciallendingpros.com

SECURITIES FINANCING, A PERFECT ALTERNATIVE TO TRADITIONAL FINANCING!!

A Securities Loan allows investors to borrow against their securities portfolio to create liquidity  while staying in the market and enjoy the benefits of dual appreciable assets at once.

•          Can borrow up to 80% or more of the value of your security

•          No maximum loan amount

•          Interest Rate can be as low as 4%!

•          Non-Recourse – no credit bureau reporting

•          Response typically within 48 hours of receipt of quarterly report, securities statement, etc.

•          Funding within 7 to 10 days from contract execution

•          May be used to purchase real estate outright, pay off a hard money loan and more…

•          Loan is NOT securitized by real estate

•          Maintain ownership of stocks and gain if your securities rise.

 

 

 

Commercial Capital Ltd.

Tel: 863-298-8900

Fax: 863-877-4456

Email: loans@CommercialLendingPros.com

Website: www.CommercialLendingPros.com

Your #1 Source For Commercial & Business Financing

 

Commercial Financing- what's hot and what's not??

These are the loan types that are easiest to fund given current market conditions.

1) SBA loans for owner occupied / owner run businesses up to 80% of purchase price, project costs or appraised value of real estate. We can go up to 90% of project costs for medical professionals with one of our special SBA programs. Minimum loan amount $400,000. Maximum loan amount $2,000,000.

2) FHA loans for multi-family housing or assisted living facilities. Up to 85% 1st lien financing. 35 - 40 year amortization. Fixed rates. 1.18 DSCR. Only negative is that depending on size and complexity of project and which state the project is in - most HUD offices are back up and closings could take 4-6 months from date of application to funding. Prefer $2 million minimum. No maximum on this program.

3) FNMA / HUD loans for multi-family up to 80% LTV. Only taking 60 days to close these in most cases. $750,000 minimum loan amount to $20,000,000. Minimum DSCR was just increaased to 1.25. Need 90%+ occupancy.

4) USDA Rural loans for businesses (owner occupied and investment properties are elligible). $750,000 minimum. $10,000,000 maximum. Up to $5 million, in house underwrtiting approval. Over $5 million requires Washington DC approval so add 30-60 days to sgtandard 60 day closing process. Prime + 2.50% adjustable quarterly. To be elligible, the business / property must be based in a municipality with 50,000 or less population.

5) Loans against securities (stocks, bonds, treasuries) with no income verification or minimum credit requiirements. Loans of 60% - 80% of current asset value of portfolio. Rates are interest only in the 5% - 6% range. All we need is recent monthly or quarterly statements to review and within 3-5 business days we can generally issue a formal loan proposal offer. Close and fund in less than 30 days in most cases.

We offer many other programs, but given the tight market conditiions that exist today, these are my recommendations for the quickest and easiest route to loan approvals and closings.

Tony DeCresie

Commercial Capital, Ltd.
Your #1 Source for Business & Commercial Loans
Office: 863-299-2929
Fax: 863-877-4456
Cell: 813-833-3132

http://www.commerciallendingpros.com