Loan Guidelines for Automotive Property Financing
Eligible Property Types:
Included within this category are auto repair shops, used car lots,
quick-lube facilities, tire repair shops.
Loan Size:
USDA: $250,000 - $5,000,000 SBA: $250,000 - $5,000,000
Eligible Locations:
East of the Mississippi
Loan Term Amortization:
USDA: Maximum 30 years; SBA: Maximum 25 years
Collateral:
First position mortgage as certified by title search and title policy on property. First security interest under UCC-1 on all business assets is generally required.
Loan Escrows:
The borrower may be required to contribute monthly to an escrow account for real estate taxes and property insurance.
Appraisal:
Complete summary appraisal required.
Environmental Screen or Phase 1:
Required
Eligible Principals:
U.S. citizens, or permanent resident aliens. 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.
