SBA Loan Scenario - Mixed Use Property Qualifies for SBA Loan

Who:

1.            Borrower owns and manages banquet   facility
2.            Borrower has owned this business for five years
3.            Borrower business income meets all loan requirements
4.            Borrower has middle credit score of 635

Property Type:

1.            Mixed Use – Residential & Retail
2.            Three apartments on the 2^nd Floor               
               Business on the 1^st Floor               
               Basement is finished and used by the Business
3.            FMV       $2,200,000          MTG      $1,600,000

What:

1.            Note of current lender is now due for pay off
2.            Borrower wants conventional rates and terms

Where: Memphis, TN

When:   Standard SBA Loan closing time is 45 – 60 days

How:    

1.            Borrower has exhausted his conventional and non-conforming loan options
2.            Lenders had issues with:               
               a)   Open floor plan of the first floor               
               b)   Location of the property               
               c)   Credit scores of the Borrower

Decision:  Eligible for SBA Loan

Why:

1.            SBA Lender has no minimum credit score requirements 
2.            Business had required net cash flow
3.            SBA Lender underwrote the loan based on the business nature of the property   
               and qualifying appraisal
4.            SBA Loan requirement is the business must use 51% of the building’s square footage               
Eligibility Cure:

1.            Use of the basement added the necessary square footage to business usage for the    
               51% square footage requirement to be met

              
               Call or email Joel Soforenko and go over your Loan Scenario               
               888-268-7778 x 2 or joel@southendcapital.com