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

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

SBA Business Only Loan Program - No Real Estate

Loan Terms:

Amouint:               $50k - $350k
Recourse:             Personal & Corporate
Loan Types:          Business Expansion, Working Capital, Renovations,
Loan Types:          Leasing, Equipment, Inventory, Business Purchase
LTV:                      Non - Cash Flow Based
Business Types:     Any Type Existing Business (one year in business)
Territory:               Nationwide
Collateral:              Business Only  (no real estate required)
DSCR Min:             1.25%
Credit:                   Troubled Credit OK - No minimum scores
Interest Rate:        6.0%   (2.75% + WSJ Prime Rate)
Amortization:         10 years
Term:                    10 years
Pre Pay Penalty:    None

LOI Submission Requirements:
Personal Financial Statement
Credit Report
Tax Returns, most recent year
Letter of Explanation, Use of Funds