![]() Commercial Lending X April 2019 Update:
Time To Reinvent Commercial LendingCommercial Lending X is your one stop source for all of your commercial financing needs. Combined we have over 50 years of commercial lending, credit management, and underwriting experience. Our team has gotten approvals for over $400 million in commercial loans over the past nine years. Let us see what we can do for you. ![]() The Next Crisis in Banking – It is Not What You Think The Great Recession hit Banks hard. Not only were many Bank’s under-capitalized at the time, but the quality of their loan portfolios was poor and in some cases dismissal, leading to large losses that almost completely crashed the whole financial system, the economy and even the Country. Great strides have been made since the Great Recession, both in the form of tighter regulations as well as just better management practices from Boards of Directors and Bank owners, to be sure what happened in the late 2000’s never happens again. Although Banks are still at risk of having increases in problem loans and capital issues should the economy hit the skids, due to much better lending practices, more conservative loan advance rates, better loan loss reserves, and higher minimum capital ratios, Banks are much better poised to survive any future economic downturns, making the full collapse that started in 2007 much less likely in the future. Despite the changes that have been made to key areas such as credit quality and capital, Banks are still not home-free. Their continues to be one key issue facing Banks, and that issue is deposit generation. ![]() Recent Success Stories Below are a few recent success stories to help provide more detail on the type of transactions we can get financing for at Commercial Lending X. New Daycare Center Start-up – Client was looking to open their second daycare location. We were able to secure 90% financing for the start-up of their second location in the form of a $3.6 million construction loan, with a conversion to an SBA 504 loan when construction is complete, offering a 25-year fixed rate on 40% of the loan amount, and a ten year commitment from the originating Bank up front on their portion of the loan at an attractive fixed rate. Hospital Refinance – Client was looking to refinance an existing hospital they operate and consolidate existing debt. We were able to secure an attractive $3.3 million mortgage at a very competitive long-term fixed rate with a local / regional bank on a non-recourse basis to complete the refinance and close quickly. ![]() Loan Program Updates Multi-family 6 to 12 Unit Special Pricing Program offering fixed rates starting in the mid 4% range fixed for 5 years with 7 and 10-year options available, 30-year amortizations, refinances up to 80% of value and cash-out up 70% of value. Looking for stabilized properties with historical cash flow to support proposed debt service. The CMBS Market (Commercial Mortgage Backed Security) has continued to make a return. Non-recourse financing is available for acquisition and commercial property refinances of loan amounts $3 million and greater with long-term attractive fixed rates available starting as low as the mid 4% range for income producing properties (mixed-use, office, retail, industrial, and apartment). Loan to values usually need to be at or below 65%. Cash-out is also available in certain circumstances. SBA 504 interest rates have come back down close to historic lows. If you are looking to refinance or acquire a commercial property to primarily owner-occupy with your business (51% or more occupied by your business), now is a great time to do so. Utilizing the SBA 504 program you can get a 10-year Bank commitment on 50% of the loan amount, finance as much as 40% of the loan amount via an SBA 504 loan, and allow you to get away with as little as 10% down on the purchase. In April interest rates were 4.36% on the 20 Year SBA debenture and 4.53% on the 25 Year SBA debenture. |