What types of deals are funding?

[Blaise Dietz]

Hi,

I was asked by a commercial Realtor today about what types of business loans are being funded and here was my response.

SBA loans! As most of you know, the SBA 7a loan goes up to 2 mm and you do not need to own the real estate and the SBA 504, where you do own the real estate, has a loan limit of 5mm.

We recently funded a Firehouse Subs and an ACE Hardware franchise deal and the key to getting this done is working with a lender that does not charge up front fees! Borrowers are afraid of being raped by the unscrupulous broker or banker who charges these fees. So, my advice is to NOT refer yourself or your client to brokers or bankers who charge upfront fees for SBA loan placement help. Also, you should avoid any broker or banker who charges more than 1pt for origination. The active lenders are paying YSP's of 1 point to their preferred brokers. Isn't 2 points for compensation enough?

Fact: Most local banks are on the sidelines still but there are several lenders that avoided the sub prime residential catastrophe and the irrational exuberance that took place in the commercial loan markets and are actively funding deals in conjunction with the SBA.

If you are looking for some small balance commercial business I would focus on working with business owners that qualify for the SBA loans and franchise's that are already approved by the SBA.

Please share with me loans and deals that are closing for you! Thanks..

Attack life!

Blaise