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Loan Programs
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Small growing businesses and growth-minded professionals need to have the ability to act fast in order to take advantage of opportunities as they are identified. These businesses and professionals also require flexibility in using and managing capital recourses, especially cash! All of CAG’s conventional non-conventional and government small business loan products offer speed and flexibility now and in the future:
Bridge and Hard Money
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Bridge and Hard Money Loans
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Purpose
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Business acquisition, expansion, recapitalization, and refinance
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Loan Amount
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Up to $10 million
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Interest Rate
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Fixed
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Term
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Up to 5 years Interest only
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Prepayment Penalty
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Declining scale
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Fee
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Commitment fees start at 2%
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Collateral Position
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Mortgage on business real estate, machinery and equipment, secondary collateral, UCC filings (primary collateral must be 50% of the loan)
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Recourse
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Full guarantee of all principals
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LTV
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Maximum 75%
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Debt Service Ratio
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Minimum 1.25x for current fiscal year
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Diversity
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Nationwide to a variety of industries
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Financial Data
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Business:
o Three years of historical tax returns and financial statements
o One year of projections for existing business or two years for start-ups
Personal:
o Three years of tax returns & financial statements of owners with 20% or more ownership
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Third Party Reports
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Appraisal and environmental study
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SBA 504 Loans
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SBA 504 Loans
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Purpose
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Purchase of fixed assets of a capital nature
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Loan Amount
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Up to $3,000,000 - First Mortgage Loan is approximately 50% of total project costs; Second Mortgage/SBA Debenture is 30-40% of total project costs; owner's equity injection is 10-20% of total project costs.
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Interest Rate
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o First Mortgage Loan - Floating rate over 30-day LIBOR, adjusted monthly
o SBA Second Mortgage Debenture - Fixed rate determined by the SBA
o Interim Period Loan - Floating rate only
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Term
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o First Mortgage - Up to 25 years, fully amortizing
o SBA Second Mortgage Debenture - Up to 20 years, fully amortizing
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Prepayment
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Declining Scale
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Origination Fee
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Minimum 1.5% on the First Mortgage Loan
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Interim Fee
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Minimum 1% on the Interim Second Mortgage Loan
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Collateral Position
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First and second Mortgages/Deeds of Trust; additional collateral as required
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Recourse
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Full guarantee of all principals
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Financial Data
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Business:
o Three years of historical tax returns and financial statements
o One year of projections for existing business or two years for start-ups
Personal:
o Three years of tax returns & financial statements of owners with 20% or more ownership
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Third Party Reports
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Appraisal and environmental study
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SBA 7(a) Loans
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SBA 7(a) Loans
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Purpose
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Business acquisition, expansion, construction, recapitalization, refinance, working capital, and machinery and equipment purchase
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Loan Amount
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Up to $1.5 million
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Interest Rate
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Floating rate, up to 2.75% over WSJ prime
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Term
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Up to 25 years, fully amortizing
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Prepayment
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o May prepay up to 25% during first 3 years without penalty
o Above 25%, prepayment penalty of 5%, 3%, 1%
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Fee
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One time SBA guarantee fee
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Collateral Position
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Mortgage on business real estate, machinery and equipment, secondary collateral, UCC filings
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Recourse
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Full guarantee of principals
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LTV
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Maximum 80%
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Debt Service Ratio
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Minimum 1.0x
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Diversity
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Nationwide to a variety of industries
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Financial Data
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Business:
o Three years of historical tax returns and financial statements
o One year of projections for existing business or two years for start-ups
Personal:
o Three years of tax returns & financial statements of owners with 20% or more ownership
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Third Party Reports
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Appraisal and environmental study
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