| Picture As you know, with the government shut down, SBA loans are essentially at a standstill. We can still work, clear conditions, and get loans ready for funding when the government re-opens, but until then, no new SBA loans will close unless they already have a funding number in hand. That being said, deals still need to get done, and there are other programs available right now to bridge the gap and keep your pipeline moving.Here are the main alternatives we are actively closing with: Bridge Program This is a short-term solution, designed to keep things moving while waiting on permanent financing. You’re looking at up to 65%maybe up to 70% LTV with terms from 12 to 36 months. These loans require two clear exit strategies, and you’ll need to show how monthly payments will be covered. They are interest-only, with a reserve/holdback for any net operating income shortfalls. Closing takes about 30 days if the appraisal isn’t already in place. Alternative Program This option provides a little more flexibility. Maximum leverage is 70% to 75% LTV, with hybrid fixed rates for 3, 5, or 10 years on a 10-year term with 20–25 year amortization. Rates generally range from 6.5% to 9%, with a 1.25 DSCR requirement. Prepayment penalties apply (3 or 5 years), and lenders require impounds for taxes and insurance. Closing timelines average about 45 days. Conventional Program This is the most traditional route. Investment properties can go up to 75% LTV, while owner-occupied can reach as high as 85%. Rates start in the 5’s and range up to 7%, typically fixed for 3 or 5 years with a 20-year amortization. DSCR requirements are higher at 1.3, and prepayment penalties are standard at 3 or 5 years. You’ll also need to keep an operating account with the lender, and global cash flow will be underwritten. Closings usually take up to 45 days. So yes, the shutdown is creating some delays, but we do have active and viable programs that are closing now. My recommendation? Hope for the best—that the government re-opens quickly—but prepare for the worst by considering alternatives like these to get your deals across the finish line by giving me a call today at 512-358-1511. 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 Commercial Capital, Ltd. O: 512-358-1511 E: karen@ApplyCommercialLoans.com w: www.linkedin.com/in/karenschimpf/ blog: http://bizloansconnections.com/ website: http://applycommercialloans.com  P.S. Need short-term financing to bridge the gap? Our SBA Bridge Loans provide flexible, fast solutions with minimal down payments and options for lower credit scores. Perfect for businesses looking to cover costs while waiting for long-term funding. DON’T KEEP LOSING DEALS DUE TO FINANCING…give me a call today at 512-358-1511 or get started online here: https://applycommercialloans.com/apply-now/. |
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