USDA & SBA Loan Guidelines for Retail Property Financing

Eligible Property Types: Markets, convenience stores, drug stores, department stores, laundromats. Loan Size: USDA: $250,000 - $5,000,000  SBA: $250,000 - $2,000,000 Eligible Locations: Nationwide Loan Term Amortization: USDA: Maximum 30 years  SBA: 15, 20, 25 years Collateral: First position mortgage as certified by title search and title policy on property. Collateral assignment required. Subordination of tenant leases may be required. Loan Pricing: Determined by pricing matrix. Debt-Service Coverage Ratio: Minimum DSCR of 1.25x depending upon property type, age, physical condition, location, and competitive market position. Loan-to-Value Ratio: 80% LTV. Cash Out Refinance: Borrower must justify proceeds to be used for business purposes only. Minimum 2 years ownership. Maximum LTV 75%. Loan Escrows: The borrower may be required to contribute monthly to an escrow account for real estate taxes and property insurance. The borrower may also be required to establish a monthly capital replacement escrow reserve equal to the greater of (a) 5% of gross revenues or (b) an amount to be determined by Ocean Capital on the basis of an engineering report and site inspection. Appraisal: Complete summary appraisal required. Environmental Insurance/Screen or Phase 1: Required Survey: No survey required if title company agrees to delete the standard exceptions from the title policy. Reserves at Closing: The borrower shall establish a remediation/repair reserve at closing equal to 125% of the required deferred maintenance repairs as indicated in the environmental and architectural / engineering reports. Eligible Principals: U.S. citizens, permanent resident aliens, non-permanent resident aliens (with restrictions). Majority principal owners cannot be on probation or parole. Recourse: Every loan will be personally guaranteed by any shareholder with 20% or more ownership in the company.