Borrower Benefits Low down payment of only 10% Long repayment terms reducing monthly payments Frees up cash flow to expand your business Many rate options including long term fixed rates Use of Proceeds Purchase, construction or renovation of owner-occupied commercial real estate refinancing of existing debt is not permitted with a 504. Please refer to SBA 7a for refinance transactions.
Standard Loan Structure 50% financing - First mortgage (up to $5,000,000 million) 40% financing - SBA 504 second mortgage (SBA/Certified Development Corporation provides up to $2 million) 10% minimum down payment by the borrower (15% in the case of special use properties)
25 years, fully amortized
Fixed, floating and adjustable rates available
Competitive fee structure
Prepayment penalty applies & is set based on various factors
20 years, fully amortized
Fixed rate is determined at SBA-guaranteed 504 debenture sale
Fees set by the proposed lender
Prepayment penalty for initial 10 years, none after the end of year 10
SBA 7a Loans
Borrower Benefits Long repayment terms, reducing monthly payments Frees up cash flow to expand your business Down payment as low as 10% on multi-purpose real estate acquisitions and as low as 15% on single-purpose real estate acquisitions Financing available for most industry types including: hotel/motels, gas station/convenience stores, restaurants and day care centers
Loan Amounts Up to $5,000,000 million Use of Proceeds Real estate - purchase, construction, renovation or refinance of commercial real estate. Majority of space must be owner-occupied. Business acquisition - business, franchise or professional practice. Machinery & equipment - purchase or refinance. Loans up to $1.5 million Start-up - franchised businesses such as restaurants and hotel/motel. Terms Real estate - up to 90% financing, up to 25 years, Prepayment penalty for initial 3 years, none after the end of year 3 Business acquisition - up to 80% financing, up to 10 years, No prepayment penalty Refinance - up to 100% financing, up to 25 years, Prepayment applicable for initial 3 years on terms greater than 15 years Rates are based on a spread over the Prime Lending Rate. Rates vary depending on the specific strengths of the transaction SBA Guarantee Fee is paid directly to U.S. Small Business Administration. Amount varies based on loan/guarantee amount. Other customary fees also apply All 7a loans are fully amortized and are assumable
Conventional Small Business
Borrower Benefits Long repayment terms, reducing monthly payments Frees up cash flow to expand your business Fixed interest rates result in less uncertainty due to future interest rate fluctuations
Loan Amounts Up to $5,000,000 million
Use of Proceeds Purchase or refinance (with cash out) of commercial real estate (minimum 25% owner-occupancy required) Eligible property types include (but are not limited to): self-storage, industrial, hotel/motel, office, car wash, restaurant, day care and retail Ineligible property types include: multi-family, single family residential, church, water park, golf course, raw land and marina
Terms 25 year fully amortizing repayment schedule Loan to values of up to 85% on multi-purpose properties Lower loan to values available for special use properties. Prepayment penalties are required Fixed (for full loan term) and variable rates available All customary fees apply (including loan origination fee and loan closing costs) Underwriting requirements: Minimum FICO & debt service coverage requirements (vary by deal type - call for specific information). Additionally, taxes/escrows may be required Loans are assumable
USDA Business & Industry
Up to $5,000,000 million
Eligible Areas Projects financed under the B&I program must be located in the United States or its possessions/territories and must be in a rural area (defined as having a population of less than 50,000).
Eligible Borrowers Any legal entity including individuals, public and private organizations and federally recognized Indian tribal groups There is no size restriction on the business
Use of Proceeds B&I Loans may involve acquisitions, construction, conversion, repair, modernization or debt refinance. Loan proceeds can be used for real estate acquisition and/or improvements, machinery, equipment, furniture, fixtures and working capital. Closing costs and guarantee fees are also eligible.
Borrower Equity Requirements For existing businesses: a minimum of 10% tangible balance sheet equity is required at the time of issuance of the Loan Note Guarantee For start-up businesses: a minimum of 20% tangible balance sheet equity is required at the time of issuance of the Loan Note Guarantee Equity is determined in accordance with Generally Accepted Accounting Principles (GAAP)
Terms All B&I loans are fully amortized with no balloons or call dates. Maximum repayment terms are up to 30 years for real estate and improvements, up to 15 years (or useful life) for machinery, equipment, furniture and fixtures and up to 7 years for working capital. Rates are based on a spread over the Prime Lending Rate. Rates vary depending on the specific strengths of the transaction. A one-time Guarantee Fee of 2% of the guaranteed principal amount is due to USDA at loan closing. Other customary fees also apply.
Borrower Benefits Long repayment terms, reducing monthly payments Low down payment of as little as 10% Financing available for most eligible industries including (but certainly not limited to): restaurants, manufacturers, medical professionals, retail stores, dry cleaners, print shops, day care centers, car washes, wholesalers, hotels/motels, machine shops, gas station/c-stores and others
Loan Amounts Up to $2,000,000 million (up to $5,000,000 million on real estate acquisitions)
Special Requirements Buyers must have direct or highly related industry experience coupled with acceptable personal credit histories. Loans available to purchase 100% ownership in an existing business Transaction can be structured as either an asset purchase or stock purchase redemption Due to the uniqueness of each transaction, business acquisitions are evaluated on a case-by-case basis Loans typically must be secured with a First Security Interest in all business assets as well as all available collateral (including the buyer's personal residence) until the loan is fully secured. Loans will be considered with up to a maximum unsecured exposure of up to $500,000 Third party business valuation may be required
Terms Terms of up to 10 years depending on use of proceeds (terms will be longer if real estate is included with the business purchase) SBA 7a loans with terms of up to 15 years have no prepayment penalty while terms of 15 years or greater have no prepayment penalty after year 3 Rates are based on a spread over the Prime Lending Rate. Rates vary depending on the specific strengths of the transaction All customary fees apply all 7a loans are fully amortized and are assumable. The loans have no call dates or balloons
Borrower Benefits Long repayment terms, reducing monthly payments Frees up cash flow to expand your business Low down payment of as little as 20% for acquisitions (& 100% financing available for refinancing and renovations with sufficient equity in business) SBA 7(a), SBA 504 and USDA B&I loans available
Up to $5,000,000 million (larger transactions may case-by-case)
Use of Proceeds Renovation, upgrading &/or re-branding of existing gas stations Acquisition of existing branded gas stations Expansion of existing gas stations Ground-up construction of new gas stations/convenience stores supported by a current feasibility study Independent & regional brands financed on a case-by-case basis Terms and Requirements Business owners must have direct or highly related industry experience coupled with acceptable personal credit histories Rates are based on a spread over the Prime Lending Rate. Rates vary depending on the specific strengths of the transaction For branded gas operations, terms of the gas supply agreement must be equal, with options, to the term of the loan, all customary fees apply All 7a loans are fully amortized and are assumable
Palm Tree Financial Car Wash Finance Program is a one-stop financing resource available to assist with the purchase, renovation, expansion, construction or refinance of car wash businesses and equipment. We offer highly attractive SBA financing packages.
Borrower Benefits Long, fully-amortizing repayment terms of up to 25 years Frees up cash flow to expand the business Low down payment of as little as 20% for acquisitions and start-ups 100% financing available for refinancing and renovations with sufficient equity in business Turn Key Financing packages (construction to permanent financing) available Competitive pricing and terms Loan amounts available up to $5,000,000 million
Minimum Criteria Direct or highly related industry experience (required for full service operators only) Acceptable personal credit history Proven historical debt service ability for existing and proposed debt
Estimated Timing Closing in 45 to 60 days from receipt of a complete underwriting package and signed term sheet with deposit check Third party reports may delay closing if not ordered and delivered promptly
Initial Documentation Required to proceed to a Term Sheet/Letter of Interest:
Sponsorship Package -Bio's for all Principals (must include a list of current owned or previously owned businesses) -Financial Statements for Principals -Credit reports for all Principals (within the last 90 days) A completed Financing Request Form (see "Forms" tab at the top of this page). Executive Summary on the business Offer Memorandum on the subject asset if the transaction is an acquisition Color Photos of the subject property (color rendering if new construction) Detailed Sources & Uses of Funds Five Year Detailed Performa Detailed Construction Budget Detailed Construction Plans Feasibility Study (if available) Business complete tax returns for the last three years Personal complete tax returns for the last three years on all Principals Current Business Balance Sheet and Profit and Loss Statement Previous Third Party Reports -Environmental -Engineering (property solutions report) -Appraisal -Owners Title Policy -General Inspections (roof, termite, etc.) -Survey Current Insurance Policies (copy of declaration page) Any other information you believe to be of importance please include
Palm Tree Financial cannot complete a proper review and ultimately produce terms and or a quote we can stand behind without a complete submission package from you. Kindly submit a complete package electronically, we prefer all packages to be submitted via email/electronically, we do have the capability to receive large files electronically. If you are not able to generate some of the required documentation, Palm Tree Financial does offer documentation services (e.g. Performas, Executive Summaries, Source & Uses of Funds, etc), please visit the tab at the top of our website "Documentation Services Offered" for more details.
If you are a referring Broker you must complete the PTFC Referral Agreement and accompany the Referral Agreement with your submission (this agreement is only required on your first submission). You can find PTFC's Referral Agreement under the "Partner with Us" tab at the top of this page).
General pre-screen turn times are 3-5 business days.
PALM TREE FINANCIAL WILL NOT REVIEW ANY PROPOSAL FOR FINANCING THAT IS NOT A COMPLETE SUBMISSION FILE.
SPECIALIZING IN COMMERCIAL AND MULTI-FAMILY REAL ESTATE FINANCING