South End Capital Closings For “Unbankable” Loans Up Sharply: SBA, Private Money & Conventional

Innovative commercial real estate lender continues to expand programs to service brokers and borrowers shut out elsewhere.
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Recently expanded SECC offerings have spurred significant increases in our closings of otherwise ‘unbankable’ loans.


Over the same time last year, Boston-based finance innovator South End Capital Corporation (SECC) has announced an unprecedented five-fold increase in Q2 closings of commercial real estate and business loans deemed untouchable by conventional standards.


“Our focus has always been on providing bankable and affordable options for borrowers shut out by conventional lenders,” stated SECC Founder and Managing Director Noah Grayson. “But recently expanded SECC offerings like our new private money and flexible and aggressive SBA 7(a) programs have spurred significant increases in our closings of otherwise ‘unbankable’ loans.”


A sample of the firm’s June 2014 closings and their challenges include:

Forest Hills, NY Dental Office: $3.22M SBA 7(a) office condominium purchase/business loan; a quarterly adjustable 21.5-year term at 5.5% was provided. Challenges: 138% LTV; funds for construction, equipment, working capital and debt consolidation needed.


Helotes, TX Warehouse: $1.15M conventional refinance loan; a 5-year fixed period at 5% was provided. Challenges: Previous loan history left borrower ineligible for SBA financing; small market; multiple loans and unsecured debt to be consolidated for cash-flow; loan structure too challenging for other lenders.


Hillsborough, NJ Yogurtland Franchise: $1.08M business expansion loan; a 7-year term at 6% with no pre-payment penalty was provided. Challenges: No primary real estate collateral; only business assets and a third mortgage on borrower’s primary residence were secured; two previous failed locations.


Egg Harbor, NJ Self-Storage Facility: $578.5K SBA 7(a) refinance loan; a quarterly adjustable, 25-year term at 6% was provided. Challenges: Subordination negotiation required; debt coverage shortfall; prohibitive insurance; working capital needed.


Dorchester, MA Funeral Home: $539.6K SBA 7(a) refinance loan; a quarterly adjustable, 25-year term at 6% was provided. Challenges: 641 credit score; 90% LTV.


Haverhill, MA Strip Mall: $400K conventional purchase loan; a 3-year fixed term at 5.25% amortized over 30 years was provided. Challenge: On-site auto service shop with potential contamination.


Lawrenceville, GA Convenience Store: $273K SBA 7(a) convenience store purchase loan; a quarterly adjustable, 25-year loan at 6% was provided. Challenges: Start-up (no current c-store ownership); cash-flow based on projections; 666 credit score; small market; 136% LTV.


Fall River, MA Mixed-Use: $185K conventional refinance loan; a 10-year fixed rate at 5.74% was provided. Challenges: Light cash flow; undesirable market; month-to-month tenants; 80% LTV.


West Hartford, CT Duplex: $100K cash-out, private-money loan; a 25-year fixed term at 8.99% with no loan points was provided. Challenges: Residential real estate loaned against commercially; cash-out needed to consolidate personal credit card debt; competitive terms and quick closing required.


Olympia Fields, IL Business Expansion: $100K cash-out, private-money business loan to purchase equipment and grow business. Challenges: No real estate collateral; large tax lien outstanding; quick closing needed.


South End Capital Corp. works directly with borrowers and routinely with brokers, paying referral fees to its approved partners. To inquire about the many innovative programs available through South End Capital Corp., contact Joel Soforenko directly at (888) 268.7778 ext. 2, or joel@southendcapital.com.