SBA Lenders Gear Up First Mortgage Pooling Program to Increase Lending Capabilities for Banks
SBA approved banks and commercial lenders have begun assembling loans under a new Small Business Administration (SBA) secondary market program to help banks increase their lending to small businesses.
Through the first-mortgage pooling program, banks will sell 85 percent of their first mortgage on SBA-504 loans to the secondary market, providing increased liquidity and ability to offer more competitive variable and long-term fixed rates to borrowers. Secondary market investors will receive an 80 percent guaranty on these loans.
It's designed to help stimulate lending to small businesses for the purchase of owner-user commercial real estate and equipment.
August 20, 2010
SBA approved banks and commercial lenders have begun assembling loans under a new Small Business Administration (SBA) secondary market program to help banks increase their lending to small businesses.
Through the first-mortgage pooling program, banks will sell 85 percent of their first mortgage on SBA-504 loans to the secondary market, providing increased liquidity and ability to offer more competitive variable and long-term fixed rates to borrowers. Secondary market investors will receive an 80 percent guaranty on these loans.
It's designed to help stimulate lending to small businesses for the purchase of owner-user commercial real estate and equipment.
August 20, 2010
Tony DeCresie, Director of Commercial Lending for Florida Real Estates & Commercial Loans, Inc., and a nationwide affiliate of Commercial Capital, Ltd., commented on the new mortgage pooling program. "This is fantastic news for small businesses across the country. Even before the first sale, our bank underwriters were loosening up on the loan approval guidelines a bit in anticipation of being able to take on a significantly higher volume of SBA loans." Commercial Capital, Ltd. is a direct SBA 504 lender. In his position, Mr. DeCresie will also provide training to Commercial Mortgage Brokers and Loan Officers across the country on other SBA and government guaranteed lending products and services to strengthen their loan production nationally. Additionally, he will initiate education programs for Certified Public Accountants and commercial real estate brokers on the benefits of SBA financing to their small-business clients.
The 504 program is designed to lend money to businesses to purchase commercial real estate to house their companies. The small business owner down-payment requirement is 10 percent of the total purchase price. A bank lends 50 percent in first position and a certified development company lends 40 percent. The CDC loan is guaranteed by the SBA.
For more details on the SBA 504 and other available loan programs for small businesses, send inquires to loans@CommercialLendingPros.com or contact Mr. DeCresie directly.
Tony DeCresie
Commercial Capital, Ltd.
Your #1 Source for Business & Commercial Loans
Office: 863-298-8900 Fax: 863-877-4456 Cell: 813-833-3132
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