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SBA 7a Loans, SBA Commercial Loans 
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Recent Articles SBA Loans: 
SBA Revises Goodwill Provisions
Common SBA 7a Questions 
SBA 7a Recent Changes
SBA 7a Loans - Why Is Funding Down? 

 

  

DUE TO PRESIDENT OBAMA'S STIMULUS PACKAGE, ALL SBA 7A FEES ARE TEMPORALLY WAIVED

We are still closing SBA Commercial Loans.  This segment of the business is still viable.  If you are considering refinancing your building or purchasing a new one, the SBA 7a loan is one of the most reliable programs in the industry and we urge you to fill out the preapproval form now. 

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Jeff Rauth of Commercial
Finance Advisor's "Gets
Ink" in Scotsman Guide,
regarding SBA 7a Loans

The benefits of the SBA commercial loans for business owners are numerous.  90% financing on purchases AND 85% financing on refinances are a few of them.  Another is that this loan has some of the most flexible underwriting guidelines available.  For example, Debt Coverage Ratio's of 1:1 are allowed WITH the use of future business projections.  Most commercial mortgages are underwritten to the historical financial's ONLY, ie the last 3 years of tax returns.  However, with this program the borrower can use future financial projections to improve their books.  Outside income can also be used to further increase net income.  Credit scores as low as 580 are acceptable as well.  Another benefit is the ability to tie in working capital into the loan, among others.  

The use of the SBA 7a loan proceeds are another major benefit.  Borrowers can use the loan to rehab or do ground up construction, buy equipment and roll in working capital.  All within the same loan...     

(Click here if your loan amount is over $2,000,000 
SBA 504 program)


Rate is normally Prime + 1% – 2.75%.  And again with the highest level of financing in the commercial mortgage business at 90% loan to value on purchases AND up to 85% loan to value on refinances (working line and build out can be rolled in as well).
 Again, refinances are acceptable through the SBA 7a program, despite what you might have heard. 

SBA 7a Refinances:

  • The refinance has to either reduce the borrowers monthly payment by 20% or more or
  • Borrowers existing loan has a balloon clause (no timing restrictions) or
  • Proposed SBA 7a loan will have a lower interest rate. 
  • Cash out proceeds have to be business related.
  •  Up to 90% loan to value, cash out or rate and term...

SBA 7a Loan, General

  • No small town population restrictions 
  • 51% or more owner occupied
  • Minimum 580 credit score (Most banks will not fund loan request with this low of credit score - we know who will) 
  • 1.0 minimum Debt Coverage Ratio - Can use fore-casted numbers (projections) into Debt Coverage Ratio

Take advantage now of this unique SBA 7a loan program designed for business owners.  Get preapproved on your SBA commercial loan now by filling out the mini commercial loan application (takes less than 5 minutes to fill out).  And or call to discuss your SBA 7a loan.

248 885-8797 

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Medbluebotton 
Commercial mortgage training, fee agreements, spreadsheets, etc.



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Commercial Finance Advisors, Inc.
(248) 885-8797 Phone
(866) 337-3141 Fax
http://www.cfa-commercial.com/

Main Office
261 E Maple Rd

Birmingham, Michigan 48009

Second Office
Roanoke, Virgina

 



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