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

SBA Loan Scenario – Credit Card Issue (Borrower as Co-Signor Owes Debt)

Who:

1.            Borrower wants to refinance his business debt
2.            Borrower went through a divorce to a trial
3.            Borrower and Ex-Spouse were ordered to split the credit card debt                and were responsible for paying off their portion of the debt
4.            Borrower’s Ex-Spouse did not pay off the court ordered debt
5.            This debt is found on the Borrower’s Credit Report as a charge off
What:

1.            Borrower cannot obtain an SBA Loan until this credit issue is dealt with.
2.            Bills to be paid off total $25,000

Where: Milwaukee, WI

When:   As soon as this issue is resolved, the loan can close

How:    

1.            Borrower went through all his options including friends, relatives,                reviewing personal and business assets
2.            Borrower could not find the means to pay off the subject debt

Decision:  Not Eligible for SBA Loan

Why:

1.            Recent charge off which could go to judgment. 
2.            FICO Score was not the issue
Eligibility Cure:

1.            The Lender of choice was apprised of the situation and cured the issue                by including the $25,000 as working capital

2.            The Borrower was allowed to use the working capital to pay off the charged off                debt at the closing. 

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

Loan Scenario - Purchase Bar & Grill

Who:

1.            Borrower has dreamed of owning a tavern
2.            Borrower is a bank branch manager
3.            Borrower has experience as a tavern chef
4.            Borrower rents a residence and has $125,000 in a bank account
5.            Borrower has very good credit

What:

1.            Tavern went out of business
2.            Tavern leased its location
3.            All assets of the business are for sale and taking over the lease
4.            Purchase price of assets is $400,000 dollars with an additional cost of $70,000                dollars for all other parts of the transaction.  Total $470,000.

Where: Dallas, TX

When:   Needs 60 day closing

How:    

1.            Borrower needs loan to include purchase of assets, purchase of liquor license and                renovation of the interior of the premises
2.            Borrower has negotiated the purchase price of the Seller’s assets
3.            Borrower will work with municipality to obtain the liquor license
4.            Borrower needs to research the cost of renovation

Decision:  Not Eligible for SBA Loan

Why:

1.            Borrower does not have required experience as a manager or owner in the                industry.
2.            Borrower does not have transferable skills any other transferable skills to                own a tavern
Eligibility Cure:

1.            Borrower can find a partner with the requisite experience.
2.            Partner will need to have a minimum of 5% ownership of the new company
3.            However, SBA Lender, Countrywide Standards is this Partner will have to fully                guarantee the loan. 

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

SBA Q & A : Borrower with No Experience

Background of Question:

If the primary borrower doesn’t have enough experience in the business he wants to purchase, and has to bring in a partner who will have at least a five percent (5%) ownership interest (minimum allowed for a partner with the experience to meet this requirement.

Question:

Does the five percent (5%) owner need to sign as a 100% guarantor (where the primary borrower does not have sufficient experience?

Answer:

Yes, the lender will require the person who has direct industry experience to be  one hundred percent (100%)  guarantor of the loan

SBA Loans for Unbankable Borrowers

 

We provide bankable SBA rates for un-bankable business owners Question: What do a 2 year old bankruptcy, a negative 2013 NOI and an un-flagged exterior corridor hotel have in common? Answer: $2,875,000, a 4.75% rate and a 25 year amortization! These are the terms we funded for the business owner with the above scenario. Contact us (888) 268-7778 x 2 or joel@southendcapital.com  Brokers Welcome and Rebates Paid!   SBA 7(a) $250K - $5MM Rates start at 4.50%, no real estate is required. LTVs to 100% and credit down to 580 considered.   Private Business $2K - $2MM Rates start at 6%, no real estate is required. 2-7 day closings and credit down to 500 considered.  Stated Real Estate $100K - $5MM Rates start at 7.99%, no tax returns required. 2-3 week closings and credit down to 580 considered.  Nationwide Most industries Flexible guidelines US and Canada! Most industries Unrestricted cash   Nationwide Most properties Unrestricted cash

South End Capital Closes Another SBA 7(a) Self-Storage Facility Loan Deemed ‘Unbankable’ by Conventional Lenders

Boston-based lender navigates persistent obstacles to deliver previously unattainable financing for self-storage facility borrower.


Virtually no challenge was absent from this SBA 7(a) real estate loan request: subordination negotiation, debt ratio shortfall, collateral risk, prohibitive insurance, you-name-it.


Boston-based finance innovator South End Capital Corporation (SECC) has once again stepped up to the plate with a commercial finance solution no bank could bring home.


The borrowers were seeking a commercial mortgage on an NJ self-storage facility, plus working capital and closing costs. As far as the other lenders the borrower had approached were concerned, the barriers presented were insurmountable.


Once SECC was consulted, however, the whole picture changed for the concerned mortgage-seeker.


According to South End Capital’s Founder and Managing Director, Noah Grayson, “Virtually no challenge was absent from this SBA 7(a) real estate loan request: subordination negotiation, debt ratio shortfall, collateral risk, prohibitive insurance, you-name-it. But our team just doesn’t give up easily.”


For the $578,000 loan amount, details included:
    Refinance of a $624,000 first mortgage (SECC negotiated the subordination)
    $40,500 working capital and the balance to cover closing costs
    6% interest (2.75% + prime), amortized over 25 years and adjustable quarterly

“The hours we put in on tough transactions like this one would scare most lenders away,” Grayson declared. “But South End Capital is in the business of providing solutions that other lenders simply cannot offer to the marketplace. This closing and other recent SECC closings demonstrate just how well our uniquely structured programs are delivering.”


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

South End Capital Closes $3.2M SBA 7(a) Loan for Dentist Office Acquisition and Construction

SECC eclipsed national banks with flexible and aggressive SBA 7(a) program that bundled borrower’s property, debt refi, construction funds, equipment purchase and more.


Other lenders wanted more collateral, would not finance the non – real estate portions of the loan, and had unreasonable prerequisites for financing the construction aspect. SECC was able to provide a solution even the borrower hadn’t envisioned.


The latest SBA 7(a) loan closing from Boston-based finance innovator South End Capital Corporation (SECC) highlights just how different this lender is from its competition in the marketplace. For the purchase of an office condominium for a dental practice in Forest Hills, NY, SECC came through with a broad-based creative solution that also met numerous peripheral financing needs for the borrower. A score of national and regional lenders had not been able to offer the borrower a workable solution.


“The creativity of our loan structure is what made this work for the borrower,” explained South End Capital’s Founder and Managing Director Noah Grayson, who pointed to the firm’s exceptionally flexible and aggressive SBA 7(a) program. “Other lenders wanted more collateral, wouldn’t finance the non – real estate portions of the loan, and had unreasonable prerequisites to finance the construction aspect of the loan. But we work each loan request uniquely and were able to provide a solution even the borrower hadn’t envisioned.”


For the $3,215,000 loan (real estate purchase price of $2,250,000), the borrower put down only $232,500 or 7.2% of the total project costs. A 138% loan to real estate (LTV) purchase price, with NO loan points, was provided. Interest rate: 2.25% + WSJ Prime or 5.5% on a quarterly adjustable rate, amortized over 21.5 years. More details:


    $216,697 was provided to consolidate existing debt
    $168,245 was provided to purchase new equipment
    $537,152 was provided for construction/renovations and office build-out
    $90,408 was provided as working capital
    Balance of funds covered loan and construction soft costs

“South End Capital was conceived expressly to provide solutions that other lenders simply cannot offer to the marketplace,” Grayson stated. “This closing and other recent SECC closings demonstrate just how well our uniquely structured programs are delivering.”


South End Capital Corp. works directly with borrowers and routinely with brokers. 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

SECC Secures SBA 7(a) Funding for Self Storage Facility & Plagued Borrower

Impossible-to-Fund’ SBA Loan Closed by Undaunted South End Capital

Via Unrestricted Program and Firm’s Story-Based Approach, SECC Secures SBA 7(a) Funding for Plagued Borrower

The borrower needed SBA funding for an unbankable situation, and SECC's unrestricted SBA loan program came to the rescue.                  

Recently, a borrower seeking a high six-figure small business loan for his self-storage facility struggled to find a lender; at every turn he was impeded by his unbankable situation. Yet for commercial real estate and small business lender South End Capital Corp. (SECC), headquartered in Boston, the loan scenario was transactable. In fact, for SECC, such "impossible" loans are the bread-and-butter business that conventional lenders usually throw away.

This latest SECC closing is a case in point: The borrower needed $775,000 in SBA funding but had a recent bankruptcy (dismissed in 2012), business cash flow that was just break-even and didn’t meet underwriting guidelines, and property that was only 70% occupied. The client’s credit score hovered at 641, he couldn’t get his hands on YTD financials during his tax-season crunch, and his term life insurance policy didn’t meet SBA requirements.


“This kind of funding effort is what we’re all about. We offer the kinds of flexible programs that are designed to help real people with real problems—the 80 to 90 percent of potential borrowers who don’t have immaculate financial pictures but work hard every day to make their businesses succeed. Then we go to bat for them the way no one else will.”


SECC’s flexible loan program offered the self-storage facility borrower bankable terms for what other lenders would deem an unbankable situation. Among his firm’s assistance efforts, said Grayson, “We utilized debt-service projections and were able to waive the YTD data requirements; then we secured an exception for the life insurance coverage requisites. We got behind our Preferred Broker on this transaction because we value our client relationships and know how to work out of the box to close our brokers’ loans.”


Closing details: On the unrestricted SBA 7(a) loan for the 161-unit New Jersey self-storage facility, the interest rate was 6% (2.75% + WSJ Prime) and was quarterly adjustable, the loan was amortized over 25 years and SECC charged 0 loan points. Loan proceeds went to refinance the borrower’s first mortgage, cover closing costs and provide him with $25,000 in working capital.


To inquire about SECC’s unrestricted SBA 7(a) loan and the many innovative programs available through South End Capital Corp., contact Joel Soforenko directly at (888) 268.7778 ext. 2, or joel@southendcapital(dot)com.


ABOUT SOUTH END CAPITAL CORPORATION
With offices on both the East and West Coasts, SECC is a direct commercial real estate lender providing private money loans up to $500,000 nationwide, and offering SBA, multifamily, bridge and bankable loans up to $20 million in participation with third-party investors. SECC also provides training and marketing services to commercial mortgage brokers through all stages of their business development. Additionally, SECC offers same-day term sheets, excellent service and prompt responses, is broker-friendly and pays referral fees to approved partners. For additional information, visit http://www.southendcapital.com or contact Joel Soforenko toll-free at (888) 268.7778 x 2 joel@southendcapital(dot)com.

Gas Station Refinance, Cleaned Up Gas Leakage: SBA Loan

Loan Program:

Lender:                  Bank lends Nationwide
Loan Type:            SBA
Situation:               Hazardous Waste, Gas Tank Leakage.  Spill cleaned up
                             with EPA continual screening in progress
AMNT:                    Up to $5M
LTV:                        75%
INT:                        Prime + 2.75 and Adjusts Quarterly
PTS:                        2
TRM:                       25 / 25
PPP:                        5 - 3 - 1  (3 years)

SBA Loan Program (504)

Loan Terms:

Loan Limits:                   $500k - $10M (higher case by case)
Recourse:                     Personal and Corporate
Loan Types:                  Purchase, Refinance, Construction
Max LTV:                     90%
Occupancy Type:          Owner Occupied (Min 51%)
Territory:                     Nationwide
Property Types:            All Commercial Properties
DSCR Minimum:            1.0
Credit Needed:             660
Interest Rate:              4.0 - 7.0%
Amortization:                20 - 25 - 30
Loan Term:                 3-5-10-15 year fixed or qtrly adjustable
Loaan Points:               1 - 2
Pre Pay Penalty:           Declining