SBA 7a

• Lower down payment options

• The purchase of business with or without real estate

• Supporting working capital and business soft costs

• Acquiring equipment, machinery, furniture, fixtures, supplies, or material

Click to read more.

SBA 504

• The purchase of business with real estate

• Consolidating or refinancing existing business debts.

• Providing flexible construction financing

• Higher loan needs exceeding $5MM

Click to read more.​

Conventional

• These types of loans differ by bank, industry and state

• Loan-to-Value (LTV): 70% is the highest based on the real estate value

• Higher down payments associated with conventional loans

• Requires historical cashflow and cannot be a projection-based deal

• Debt Coverage needed often 1.25x and above

• Typically requires real estate to be involved in the loan

• Can be used for investment properties or owner operated

• Most property types are eligible as long as there is a real estate component as part of the loan request. Click here to view examples.

United States Department of Agriculture Business & Industry (USDA B&I) Loans

• Most be located in eligible rural areas

• Loan-to-Value (LTV): 80%

• Minimum 20% down payment is required

• Loan can be used for

  • Business conversion, enlargement, repair, modernization, or development.

  • The purchase and development of land, buildings, and associated infrastructure

  • Machinery and equipment, supplies or inventory.

  • Debt refinancing if it improves cash flow and creates jobs.

• Maturity Terms:

  • Real Estate: Up to 30 years

  • Equipment Acquisition: Up to 15 years

  • Working Capital: Up to 7 years

Commercial Mortgage-Backed Security (CMBS) Loan

• Secured by mortgages on commercial properties rather than residential real estate.

• Come in the form of bonds, and the underlying loans typically are contained within trusts.

• Fixed Interest Rates

• Non-recourse - lenders cannot hold borrowers personally responsible if they fail to repay the loan except in cases of such as fraud or misrepresentation.

• Higher prepayment penalties

We can assist you with, but are not limited to, the below services:

• Pre-qualifying a buyer for a current or future purchase

• Pre-approving a current business for sale

• Analyzing a business for refinance or purchase for debt coverage and loan feasiblity

• Purchase of the property for a business currently leased

• Construction and conversion projects

• Partner buyouts and ownership structure changes

• Funds for working capital, FF&E, soft costs, materials, etc.