REFINANCING PROGRAMS
SBA 7A
7a Loans allow a justified cash out for working capital, renovation or to buy out a partner, all has to be specifically in documentation, for working capital what will be the purpose of it (Marketing, HR, Material, etc.), the renovation accompanied with a GC quote, and the buyout partnership with an agreed price in a buyout agreement or LOI. The loan is recourse, our lenders lend from $500k to 5 million. Loans can be fixed or variable, for 25 years with rates between 6.5% and 7.5% fixed and floating prime +1% to 3%. There is a 3-year prepayment penalty.
SBA 504
504 Loans offers 100% refinancing loans. This program is a combination of two mortgages. The federal government via a CDC lends a % of the money (money goes to the bank) and the Bank lends most of the money that the client needs. Combined rates can be between 6 -7.5%. Typically an SBA 504 is for a loan over 5M, tho some banks can do as low as $1M to up to 20M. It is a recourse loan and the prepayment is for 10 years.
CONDUITS
CMBS conduits, Start from $5M for hotels for brands of Marriott, Hilton, Hyatt, and IHG with interior corridors. Can be up to 100% refinancing, non-recourse loans (no personal guarantee), loans are assumable, allowed Equity Cash-Out without restriction, no minimum credit score, rates are below 7% fixed for 5, 7, 10 years term and 25 to 30-year amortization. The LTV is 60-70%. Properties must be stabilized with historic cash flow to support mortgage payments at 1.35 DSCR for the past 2+ tax returns.