SBA(7a) BUSINESS LOAN PROGRAM

Eligible Properties Nursing Homes, Res Care, Elderly Housing, Hospitals, Assisted Living Facilities, Independent Living.
Borrower Corporations, Individuals, Revocable Trusts, maximum 2 member LLC (no sub entities).
Must be a single purpose entity.
Interest Rate Fixed and variable rate programs. Maximum 35 years fixed.
Loan Amount Minimum $500,000 - no max.
Loan Term 5-35 Years.
Amortization Maximum 35 years.
Recourses Both non-recourse and recourse programs.
Assumability Assumable, subject to approval and applicable fees.
Debt Coverage Ratio Range from 1.18 x's to 1.40 x's.
Prepayment Varies.
Loan to Value 75-85%.
Minimum Beds 20
Receivable Financing Permitted with consent by lender and acceptable Accounts Receivable form and Intercreditor Agreement
Occupancy/Vacancy Min. occupancy of 70%. Vacancy will be greater of actual, market or 5%
Insurance Req. Varies.
Third Party Reports Typically $10,000 for non HUD programs and $25,000 - $30,000 for HUD's 35 year program.
Covers environmental, engineering, appraisal, survey, and AUP reports and some closing costs.
Escrows Monthly tax, insurance and replacement reserves to be collected
Reserves Greater of $300/unit or actual based on engineering report escrowed at closing
125% of repairs required reserve
Management Fee The greater of actual, market or 5%
Loan Request Package

Include the following in your request for a loan quote:

1. Personal Financial Statement
2. Census Report
3. Past two years financial statements on property
4. Sources & Uses Statement
5. Digital Photos of the property

BUSINESS PROGRAMS

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