[Zach]

800 FICO
Dental
$200K net income so far 2015
$1MM revenue so far 2015
Has collateral

Will pay 5-6% APR

Long story short, the deal is "A" paper in every respect. Not sure where to place it to beat Bank of America (current note is 4.5% APR, but understands a longer term will probably be 5-6%)

[brokerCompany]

Maybe they want SBA? rates are better. Or celtic bank

[RichardGerard]

Hey Zach... Really not much wiggle room.. I'm assuming the client is doing all his business and personal banking with B of A and they're giving him a LIBOR + 1.25... He/she is not doing a great volume of business to really have banks fighting over the paper..... I would send them to a local bank with a National Footprint (Capital One, Wells etc) or a local Credit Union to see if they have an interest

[D360]

Zach, I sent you an email to see if our lender can offer competitive rates for your client with a SBA loan.

As Richard stated not much wiggle room but let's discuss with Rich or Doug to see if we can get it done.

[Christian]

Pretty sure SBA is going to be 6-7%.

[sbaguy]

Zach,
I am a noob on here, but this may be something that is within our footprint. Our expertise is originating SBA eligible CRE transactions, that are in the $1-5MM range for SBA. We will consider smaller transactions if it is super clean, and there are not a lot of partners or affiliates. We can also go over $5MM via SBA 7(a)+Pari Passu loan for strong transactions. Assuming this is a CRE play, we are priced anywhere from P+1.5 to P+2.75. It would be a 25 year fully amortized loan, with a prepayment of 5% the first year, 3% the second year, 1% the third year, and no prepayment thereafter. If this isn't a real estate play, there is a 90% chance that I will be a pass (my two main relationships that pay enough to co-broker deals generally do not look for non-CRE transactions), but I would be happy to point you to a SBA lender that would consider the transaction. In this situation, you would generally be looking at pricing that’s at P+2.75, and anywhere from 5-10 years, and no prepayment. Brokercompany mentioned Celtic Bank who is a great 7(a) lender for these types of transactions. I also recommend someone like Stearns Banks, who is one of the quicker SBA lenders in my opinion (it really depends on which BDO that you are working with). Depending on the location, USBank is also ultra competitive, but they will only lend in states that they have a presence in. Keep in mind if SBA is the route you go, the SBA SOP has the "all available collateral" requirement for any transaction that is not full collateralized based on liquidation values. This generally takes a borrower by surprise when the transaction does not involve real estate. For example, if your client is looking to complete a partner buyout, and purchase equipment, there is a good chance that the loan will not be fully collateralized. In such situations, the SBA lender is required to take "all available collateral", which generally means a second mortgage on a home, other real estate, etc.; until the loan is fully collateralized. If BOA is offering a conventional loan, this could be a disadvantage that you will need to address with your client.

In addition to SBA, we also originate CMBS transactions starting at $3MM, but that is likely not going to be a fit here unless it’s a large medical office building. Either way, I wish you the best of luck on this transaction, and feel free to reach out to me if this is something that you would like me to take a look at.

Regards,
Brandon Driver | President & CEO
4221 Wolcott Drive
Plainfield, Indiana 46168
317-519-2347
www.skylightcommerciallending.com

[FUNd]

They want a better rate than 4.5% apr on commercial financing? 30 year consumer mortgage was just under 4 last week. Call them back, tell them to refinance their house, and softly set the phone back on the hook. Call someone who really wants to play ball.

[VFG]

Agree with Fund. If your borrower is hat rate sensitive, then you're doing work for nothing. At the end of the day you'll jump through all kinds of hoops going over and beyond and he will never move forward. Tell him to grab the yellow pages and call all the banks and to go with the one who throws the best rate.