Loan for Small Business

Helping People Purchase Their Business!

Entrepreneur’s are getting their loans for small business closed. I specialize in financing start up business and start up franchises that have no real estate involved. Many banks do not want to lend to a start up businesses/start up franchises if there is no real estate involved. Well, I am able to lend up to $2MM of goodwill which is unheard of in this market. Lend nationwide. Specialize in lending in areas like:

Arkansas,Georgia, Kentucky, Louisiana, Mississippi, Missouri, Tennessee, Texas, New Mexico, New Orleans, South Carolina, Oklahoma, and Florida.

Types of loans for small business that we offer:

SBA 7(a) Loans

We have an outstanding solution for loan amounts that are $250,000 plus!!!! Thus this is where we specialize…$250,000 + loan amount. The SBA 7(a)program is designed for startup businesses, franchises and existing small businesses.

What is the 7(a) program?

Financing designed to promote small business formation and growth by guaranteeing long-term loans to qualified firms.

Who can qualify?

Most for-profit small businesses in the U.S. are eligible. This includes the following business types: Manufacturers, retail and service businesses, franchises and professional businesses. Size standards are in place. Please call for more detailed information.

Loan Size
Up to $5,000,000

Use of Proceeds

  • Commercial Real Estate (acquisition,construction, refinance, expansion)
  • Equipment
  • Furniture & Fixtures
  • Inventory
  • Leasehold Improvements
  • Working Capital
  • Business

Terms

  • Up to 25 years for Commercial Real Estate
  • Up to 10 years for Equipment and Business Acquisitions
  • Up to 7 years for Working Capital
  • Fully-Amortized over life of loan (no balloon)

Interest Rates

  • Variable based on a spread over the WSJ prime rate; maximum spread cannot exceed WSJ Prime + 2.75%

Loan to Value

  • Up to 90% for most real estate types
  • Up to 80% for business that are $500,000.00 or less
  • Up to 75% for the businesses that are more than $500,000.00

Fees

  • One time SBA loan guarantee fee based upon guaranteed amount

Equity Injection

  • As low as 10% on multi purpose commercial real estate

Other Costs

  • Real estate and equipment appraisals, environmental reports, business valuations, customary legal and closing costs as applicable

Prepayment Penalty (PPP)

  • 5% the first year, 3%the second, 1% the third
  • Payments up to 25% of the outstanding loan balance will not incur a PPP (on terms of 15 years and greater)

Recourse

  • Personal Guarantees required for all individuals owning 20% or more
  • Corporate Guarantees may be required for affiliated companies

Benefits for Borrowers

  • Finance up to 90% of the project w/commercial real estate
  • Low equity contribution (preserves working capital)
  • Fully amortizing loans
  • Some soft costs may be rolled into the project financing

Occupancy

  • 51% for existing facilities/buildings (renovations and expansions are eligible)
  • 60% for Ground-Up Construction Projects (should occupy 80% within 10 years)

Sample projects financed by 7(a)

  • Office Buildings
  • Medical Clinics
  • Franchises
  • Restaurants
  • Car Wash
  • Child/Adult/Pet Daycare
  • Dentists
  • Printing/Copying
  • Suppliers/Wholesalers
  • Manufacturers
  • Movie Theaters

I actively market to Georgetown, Round Rock,Taylor, Hutto, Cedar Park, Leander, Austin, Kyle, San Marcos, West Lake Hills, and San Antonio. However, I also lend nation wide.

SBA 504 Loans

If you are purchasing commercial real estate for your business and are planning on occupying 51% or more of the space, than this is an option for you. SBA 504 allows a smaller down payment for the borrower which allows more reserve for cash flow.

What is the 504 program?

Co-Lender financing designed to facilitate the acquisition of capital assets for small businesses

Who can qualify?

Most for profit, owner-occupied small businesses in the U.S. with a net worth less than $15 million and net profit after tax (2 year average) of no more than $5 million; or manufacturer with less than 500 employees.

Loan Size

  • Up to $5,000,000 (1st Lien Maximum)

Use of proceeds

  • Commercial real estate (acquisition,construction, refinance, expansion)
  • Equipment
  • Furniture
  • Fixtures

Terms

  • 1st lien: Up to 25 years for commercial real estate
  • 2nd lien: Up to 20 years for commercial real estate
  • 1st & 2nd liens: Up to 10 years for equipment
  • All loans are fully amortized over the term of the loan

Interest Rates

  • 1st lien: Set by Lender
  • SBA 504 2nd lien: Fixed rate set by the SBA for the term of the loan

Loan to Value

  • Up to 90%

Fees

  • 1st lien: Set by the lender
  • SBA 504 2nd lien: Set by the lender and CDC/SBA

Equity Injection

  • 10% standard; +5% if special use; +5% if start-up

Other Costs

  • Real estate and equipment appraisals, environmental reports, business valuations, customary legal and closing costs as applicable

Prepayment Penalty

  • 1st lien: Set by the lender
  • SBA 504 2nd lien: 10 year PPP based on declining balance of debenture rate

Recourse

  • Personal guarantees required for all individuals owning 20% or more
  • Corporate guarantees may be required for affiliated companies

Benefits for Borrowers

  • Will finance up to 50% of the project at a long term, variable rate
  • CDC will finance up to 40% of the project at a fixed rate
  • Low equity contribution helps preserve working capital
  • Some soft costs may be rolled into the project financing

Occupancy

  • 51% for existing facilities/buildings (renovations and expansions are eligible)
  • 60% for Ground-Up Construction Projects (should occupy 80% within 10 years)

Sample projects financed by 504

  • Office Buildings
  • Medical Clinics
  • Franchises
  • Restaurants
  • Car Wash
  • Child/Adult/Pet Daycare
  • Dentists
  • Printing/Copying
  • Suppliers/Wholesalers
  • Manufacturers
  • Movie Theaters

For quick look to determine if you are eligible:

  • Provide or Complete Personal Financial Statement Click here for form
  • Complete 912 form Click here for form
  • Complete 4506T form Click here for form
  • Business Balance Sheet and Income Statement for most recent year end
  • Interim statement
  • Business Tax Returns for three years
  • Personal Tax Returns for three years
  • Provide Credit Report
  • Brief Summary
  • Example of Summary should include a description of the project. (Include info about borrower, what you need financng for, how much money, how it will be used and specify project cost. Example of project cost is $300K purchase office, $150 refi debt, $30k for marketing and soft cost etc.)
  • If purchasing a franchise a FDD which stand for Franchise Disclosure Docuement and Franchise Agreement
    Color pictures of the commercial building

Give me a call today at 512-650-8630 or 512-354-4949 or fill out the form on the right hand side.