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

Increased Loan Amounts To $5M on Non-Conforming Commercial Loans

South End Capital Increases Loan Limits to $5M; Expands Guidelines to Satisfy Market Demand

Small-balance non-conforming program now open to larger loan sizes and additional property types, at lower rates.

The response to our small private-money program has been so tremendous, we’ve boosted loan limits to $5 million, added eligible property types and lowered our rates.                  

 

South End Capital Corporation (SECC) has announced today that its highly successful small private-money program, launched this past April, will now assist borrowers seeking commercial real estate loans of $50,000 all the way up to $5,000,000—no longer limiting commercial real estate borrowers to loans under a half-million. (The SECC program is also known as the small non-conforming program.) As always, the funding is designed to accommodate borrowers with imperfect credit who are self-employed or seeking a swift and painless loan process.


According to SECC founder and Managing Director Noah Grayson, the firm will not only continue to offer private-money financing for hard-to-secure small loan sizes—and now, larger loans up to $5,000,000—but will provide financing for more property types and at improved rates. He stated, “The response to our private-money program has been so tremendous that we are now able to lower our rates to provide improved bankable pricing for ‘unbankable’ borrowers.”


Importantly, SECC can now consider single-family homes and two- to four-family apartment buildings, provided their use is for business or investment purposes. In addition, the firm can also review LTV (loan-to-value) requests up to 75 percent.


Added Grayson, “Borrowers will also be surprised to discover that, unlike conventional lenders, we can now underwrite many loan transactions based on stated information and verification of property information only—often no tax returns are required.”


SECC’s newly expanded nationwide private-money loan program has no borrower credit score minimum and no population restrictions; primary, secondary and tertiary markets are generally allowed. Most commercial property types qualify and rates start as low as 6.5% percent with no or low loan points. Loan closings can take place in as few as two to three weeks. Additional program criteria are available right now.


SECC welcomes both borrower and broker inquiries. The firm also offers referral fees to approved partners. To inquire about this program or any of 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 Corp Closes $1M Bridge Loan and Low Credit Score SBA 7(a) Loan

South End Capital Corporation (SECC) is a direct lender funding private money commercial real estate loans up to $500,000 nationwide and offering SBA, business, multifamily, bridge and bankable loans up to $20 million in participation with third-party investors. View our programs and easy online applications. SECC closes a $1,000,000 unrestricted cash-out bridge loan in Virginia SECC closes a $753,600 SBA 7(a) loan for a borrower with 549 credit
Featured Program 7(a) SBA 7(a) Loans  SECC offers SBA 7(a) loans nationwide. We have no geographic restrictions, no credit score minimum and no industry restrictions.  Learn more Apply online		Thanks, from South End Capital Here at SECC we are constantly striving to expand our loan programs, improve our service and increase the compensation and benefits available to our valued partners. In 2009, when most lenders were closing their doors, we opened ours to provide the commercial loan community a reliable source of capital in an unreliable lending environment. Since that time, we have established an exemplary reputation of performance, developed many valuable relationships and have gained our partners' trust. As the economy continues to pick up and more and more untested lenders flood into the marketplace, we know we have to work that much harder to persistently earn your business. With that in mind, we look forward to the years to come as, in every way possible, we continue to help you attain the success and prosperity you deserve.     Joel Soforenko Vice President, Originations Direct     (413) 348-5604 Fax        (617) 531-2008 joel@southendcapital.com www.southendcapital.com

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.