Micah good morning.. Touch base- I do know how the SBA works- a lot of the information isn't stacking up. If the property in question is as valuable as you describe we have an in house program that can help (NY METRO AREA ONLY). We can take the first on the property- up to 75% LTV- as long as we like the area (and value) we can close as swiftly as appraisal and title allow. The money is private and cost is typically 10/4 plus Broker (18 month balloon)- contingent on credit and perceived exit. Yes: even OO.

As for exit-I would need to know which bank- specifics on existing loan (and collateral), and of course to see PAPER- even though the client is reticent to supply it. No quick fix here. Banks need to know how they can perfect a lien in the event the client goes sideways, and so do we- to make sure we understand the entire situation- and if makes sense to do what you are proposing.

Trying to wrap around why a Sub doing 130k a month would want to Factor AR (likely 350k up to 90 days- at construction factor rates) at a much higher cost of capital- than keep existing loan in place that is sub 10%. Even if new project and/or WIP is substantial why would a client pay 2.5% interest per month (over 30% annually)? Blended cost of capital for existing loan PLUS a strong first position advance is better- wouldn't you say???? The fact that the client isn't a 'paper pusher' makes the this solution infinitely more palatable. Weren't you saying the other day how aggressive Principis is being lately with their offers??

Even though you have my cell please call Kelly at our office (631-880-7501) to get on my call Calendar to discuss options.

Richard Gusmano, CEO & Founder
Business Capital Consultants USA
3237 Route 112 Suite 9
Medford, NY 11763

www.bccusa.com