USDA
| Feature | Characteristics |
|---|---|
| Product overview | Commercial financing for rural business; creating and saving rural jobs, improving economic climate of rural communities. |
| Loan amount | Max: $25 million. Minimum: $1 million |
| Loan type | Real estate buildings |
| Eligibility | Business purpose in rural areas. Manufacturing, wholesale, retail, service, new or existing. Must be in a rural area, beyond any 50,000+ population city and its urbanized periphery (there are a number of exceptions for which eligibility determination can be verified with a complete address of the subject business of the property). Majority ownership must be held by US citizens or permanent residents. Any ownership of government or military employees must be less than 20%. |
| Loan term & amortization | 30 years maximum (not to exceed useful life of collateral). Ballons are not permitted. Reduced payments may be scheduled in the first 3 years. |
| Rates | Lender’s customary commercial interest rate — fixed or variable (rate may not vary more than quarterly). Rates are tied to prime and adjusted quarterly or can be fixed for 3, 5 or 10 years. Starting in the high 6%. |
| Fees | Lenders customary fees: USDA charges a onetime guarantee fee of 2% of the guarantee amount. The loan guarantee is subject to annual renewal fee of 0.25% on the guaranteed portion of outstanding principal. |
| Prepayment penalty | Lenders customary pre-payment penalty. |
Bridge Loan
| Feature | Characteristics |
|---|---|
| Loan amount | From $250K to $20 million |
| LTV | Up to 60% max |
| CLTV | May be allowed on a case by case basis up to 75% |
| Loan term | Up to 36 months |
| Minimum Fico required | None |
| Prepayment penalty | None |
| Exit fee | None |
| Interest rate | Starting at 10% |
| Lending | Nationwide lending. No rural areas(minimum population required 100K) |
| Acceptable property types | Office, medical/dental, office condo, warehouse, multifamily, mixed use, retail, strip centers, assisted living facility, day care, flagged and non-flagged hotel/motel, other property types considered on a case by case basis |
| Interest only payment | Available |
| Closing time | Can close as fast as 30 days with full package |
| Lender Fee | 2-4% |
| Broker Fee | 1-3% |
SBA 7
| Feature | Characteristics |
|---|---|
| Product overview | Must be owner occupied 51%+ to qualify under this program |
| Loan amount | from $100K to $2 Million |
| Minimum Fico | 650 |
| Minimum DSCR | 1.25 |
| Loan purpose | Purchase, refi & cash out. Cash out is only accepted under this program if proceeds are for property improvement, payment of business debt and inventory |
| Loan amortization | 25 years |
| Property types | Car washes, auto repair/transmission/body shop, bowling alleys, medical/dental & veterinarian offices, liquor stores, convenience stores, supermarkets, child daycares, adult daycares, assisted living facilities, restaurants, retail/office condo/mixed use/industrial, self-storage facilities |
| Max LTV | Up to 90% |
| Interest rate | Starts at prime + 2.75% |
| Prepayment penalty | 5% in year 1; 3% in year 2; 1% in year 3 |
| Underwriting philosophy | Global cash flow underwriting |
SBA 504 (G)
| Feature | Characteristics |
|---|---|
| Loan amount | $500.000 – 7 Million |
| Minimum Fico | 660 |
| Minimum DSCR | 1.30 |
| Maximum LTV | 90% for multi-use properties (office, retail, condo, warehouse, medical office, mixed use, light industrial).85% for special use properties (automotive, assisted living, hotel, motel, restaurant, day care) |
| First Mortgage | First mortgage 50% and Second mortgage up to 40% First mortgage amortized up to 25 years and Second mortgage up to 20 years. Second mortgage rates is fixed for 20 years |
| Occupancy | Must be owner occupied 51%+ to qualify under this program |
| Loan Purpose | Purchase only |
| Underwriting philosophy | Global Cash Flow Underwriting |
| Closing time | 60 days if complete package |
| Loan programs available | 1. Adjustable (prime plus 2.75%) 2. 3 Year Fixed: Rate starts at 5.5% with 5 year declining prepayment 3. 5 Year Fixed: Rate starts at 6.5% with 5 year declining prepayment (the above two options only apply to the first mortgage) 4. The second mortgage will carry an interest rate of approx. 5.5% fixed for 20 years and amortized over 20 years 5. Seller Financing allowed by, borrower must have Minimum Equity of 10% |