The loan came into our private money fund for an SBA BRIDGE LOAN, our specialty, with a request for 90% LTV. We closed the loan in eight (8) days, but we could have closed it in five (5). The title took five (5) days to get to us because of a glitch in their system. Within two (2) days of getting the title, we had the closing package and the money to the closing agent. That’s fast—and at 90%!!!
Some may say, why would a bridge fund go to 90%…no one does that. But I do a TON of SBA loans and I underwrite the exit strategy. If I KNOW I can refinance the loan in six (6) months, to me it’s no risk. We have NEVER had a default and never even really had a slow pay. It’s a perfect loan for us. The borrower was an insurance agent with a growing income who wanted to buy a property for his business. He had a loan commitment from an SBA lender but they could not close until he got his permits from the city for the interior changes (no walls moving, just cosmetic—yet you STILL need permits, crazy). Many cities can take 4–5 months just for such permits, and many sellers won’t wait that long…enter our fund. We closed the loan at 90%, matching his SBA approval. Seller and Realtors got paid, my borrower got his property, and now he has time to work through the grind of government permits. They eventually always issue them—it’s just a time-consuming hassle. He now has time.
Looking ahead, the marketplace still favors SBA loans as many businesses are expanding, buying out partners, and purchasing properties. Our bridge-to-SBA products can be a way to get more closings, and our process is quick.
There are certainly a lot of headwinds, but there were a lot of headwinds in the past as well. Many of them remain the same, yet businesses are still doing well. As long as that continues, there is a place for SBA loans. There are still dreamers and doers…the dreamers are the architects of the future, and we are here to help them make that vision a reality. If you or someone you know needs private money or an SBA loan, give us a call.
If you’re ready to expand your footprint by acquiring a similar business in your area, let’s get the financing in place so you can make your move by giving Karen a call today at 512-358-1511 to discuss your commercial finance needs or get started by filling out this form!
Karen Schimpf
(512) 358-1511
karen@applycommercialloans.com
PS: Need quick funding while you wait on long-term financing or the sale of another property? Our real estate bridge loans can keep your project moving. Call us today at 512-358-1511 to see if this option is right for you. Call me at 512-358-1511 or start here: applycommercialloans.com/apply-now.www.ApplyCommercialLoans.com