Loan Guidelines for Service Business Property Financing
Eligible Property Types:
Businesses which provide a service rather than a tangible product to their customers. Businesses include day-care centers and assisted living facilities.
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.
