State Business Capital (SBC) - SBA, USDA and Conventional Small Business Loans

Dear Business Professional:

If you're like most businessmen, you have mixed feelings about taking out a business loan. "That extra money would sure come in handy," you say to yourself, "but I don't know if it's worth all the time, trouble and aggravation!"

We at State Business Capital agree completely. That is why we have made every effort to make the process as uncomplicated as possible.

We can handle your business needs for expansion, acquisition or start-up capital or practically any type of business growth funding. Our loans are ideal for existing franchises, office/warehouse condominiums, freestanding buildings, and small office buildings.

No inconvenient visits to banks or loan companies. No intimidating interviews with over-bearing loan officers. No compensating bank balances required. No saving or checking accounts needed. You can apply for the money you need for your business by mail – in the privacy, comfort and convenience of your own office or home. Since 1981 this is how we've always done business – and it's one good reason why so many businessmen have come to us for their commercial and business real estate-secured loans from all across the country.

There are other good reasons as well, including competitive rates, flexible terms and our outstanding customer service.

We arrange for the advancement of funds to corporations, partnerships and sole proprietorships. With our SBA loan you can borrow from $300,000 up to $2,000,000 secured by real estate and equipment. With our USDA loan you can borrow from $2,000,000 to $10,000,000 (to $25,000,000 in some instances). With our Special Conventional loan you can borrow from $400,000 to $6,000,000 secured by real estate (not including equipment) or going concern value. And with our NEW " Stated Income/Stated Asset" loan you can borrow from $300,000 to $1,000,000. And we'll help you keep your payment low by giving you a choice of repayment plans (up to 25 years SBA and 30 years USDA, fully amortized, 15 to 20 years Conventional, fully amortized – no balloon). You can be sure you'll find terms that fit your needs exactly.

When we receive your loan application with the required documents, pending qualification, we'll get back to you right away with preliminary approval. We'll even arrange the closing in a location convenient to you. Usually, once we receive your application and essential documentation, you'll have your approval in 7 to 15 days! As long as your credit is good, have a valid business purpose for the loan, can meet the monthly payments, have adequate collateral, and meet federal regulations, you will be qualified.

We sincerely appreciate the opportunity to serve your lending needs, and look forward to providing you with a fresh approach to commercial lending.

Best of all, we're just an e-mail away.

STATE BUSINESS CAPITAL (SBC)

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We are uniquely qualified to structure creative loan solutions for properties with temporary cash flow deficiencies, purchases with subordinate financing or difficult to finance property types such as marinas or limited service motels.

Under this program we can handle difficult to finance deals that banks typically pass on. These include special purpose properties (restaurants, bars, gas stations, marinas, etc.), owner/user, single tenant, properties with low debt service coverage, and borrowers with imperfect credit. We do deals under this program that conventional lenders turn down.

These programs offer either fixed or floating rates that are very competitive with quick approvals. There are no owner-user limitations so investment properties such as office building, retail centers, rental houses, and apartment complexes are eligible. Once again, these loans do not have any call provisions, reappraisal requirements, or ongoing debt service limitations. Sorry, start-ups, new construction and land not allowed. Strictly limited to income producing properties.

Business Services
Manufacturing Plants
Office Buildings
Processing Plants
Golf Courses
Distribution
Wholesale
Retail Complexes
Hotels & Motels
Restaurants
Citrus Picker/Handler
Warehouses
Tourist/Recreation Facilities
Marina
Gas Pipeline
Family Entertainment Facility
Convenience w/Gas Station
Juvenile Correction Facility
Ship Builder
Cold Storage Facility
Oil Refinery
Bottled Water Company
Auto Dealerships
Car Wash Facilities
Gas Stations
Lumber Mills
Franchises
Health Fitness Clubs
Resorts

New Business Ventures
Truck stops
Sawmill
Mulch manufacturer
Fruit Processor
Coal Mine
Equipment Dealer
Textile Manufacturer
Cotton Gin
Pre-fab Buildings
Convention Centers
Yarn Texturizer
Museum
Antique Mall
Rodeo Arena
Guest Ranch
Dry Docks Ship Repair
Physical Therapy & Gym
Vending Company
Senior Living Facility
Child Care Center
Convalescent Hospitals
Nursing Homes
Medical Offices
Veterinary Clinics
Printing Companies
Bowling Alleys
Apartments
Shopping Strips

State Business Capital (SBC) is a correspondent lender that originates SBA and USDA guaranteed loans and special Conventional loans. SBC joint ventures with other lenders whereby the other lenders are the lender of record. In these cases, SBC is considered a joint venture compensated affiliate of the lender of record. SBC normally packages the SBA/USDA and Conventional loans. Since 1981 SBC has provided small business financing in conjunction with other lenders of the U.S. Small Business Administration (SBA). SBC offers real estate, equipment, construction and other financing, as well as exceptional service, to small businesses throughout the U.S. SBC’s highly trained staff members are dedicated to simplifying the loan process so you can get the financing you need quickly! SBC’s proven experience with government guaranteed business loan programs ensures that our clients receive quick, responsive service.

SBC's purpose is to arrange permanent financing for small business owners, to assist the small business owner to access capital that is not dependent upon variables beyond your immediate control, such as economic factors, re-appraisal results, the condition of other loans in the lender's portfolio, and maintenance of financial ratios.

The only function of SBC is to assist small business with the funding of U.S. Small Business Administration guaranteed loans (SBA), the U.S. Department of Agriculture guaranteed loans (USDA), and our special Conventional loans. We are well versed in the financial needs of small business and in the regulations and policies of the United States Small Business Administration since 1981. Our staff will work with you directly to obtain the information needed to process your request. If your loan request cannot fit into one of our government loan programs, we will try to place it in our Special Conventional loan program.

Any legal entity, including individuals, public and private organizations, may borrow. There is no size restriction on the business. There are no owner occupied/user requirements. Investor properties are welcome.

    • Purchase of existing business
    • Financing business and industrial acquisitions, conversion, expansion, repair, modernization,
       development costs or working capital
    • Purchase equipment, facilities, machinery, materials or supplies.
    • Furniture and fixtures
    • Processing and marketing facilities
    • Accounts receivable and inventory
    • Refinance existing loans, leases, or other debt for viable projects.
    • Loan fees, professional services, and feasibility study costs

Any commercial income producing real estate will be considered nationwide. (No land or construction)

All types including, acquisition, refinance, rehabilitation, expansion, tenant fit-up, conversion, bad credit, partner buy-out, etc. Sorry, no start-ups, new construction or land. Strictly limited to income producing properties.

Purchase and refinances. Cash-out refinance and subordinate debt is acceptable. All other purposes will be reviewed on a case-by-case basis.

First (and in some cases first and second) real estate liens on approved property types, and perfected security interest in personal property located on the property. Leasehold and fee simple title are accepted. Seller holdback is allowable.

The LTV maximum will be dictated by property type, geographic location, and credit score. It is normally 50% to 70% of lender's evaluation but can go to 75% under certain conditions.

Loan terms are generally 15 years, fully amortizing (in some cases, 20 years will be considered).

These loans generally range from $400,000 to $6,000,000. Larger loan amounts will be considered.

Prepayment lockout for initial 2 years. Five percent prepayment premium through year 5.

Loans which fall under RESPA guidelines generally do not fit within our Conventional Commercial Lending Program and will normally be rejected.

SBC will analyze your loan application based upon a combination of several factors

First mortgage lien on the subject property(s), assignment of leases and rents, pledge of partnership interest, UCC on other collateral. All collateral must secure the entire loan. Repayment must be reasonably assured. Personal and corporate guarantees are required. A qualified appraisal report is required on property that will serve as collateral & must meet FIRREA requirements.

Appraisal, survey and environmental insurance is required. Existing reports may be acceptable and may be pre-approved.

We look for quality loans that will support a stable employment source. The factors we review to determine loan quality include:

     • Equity:
          10%-30% down may be required at the loan closing, depending upon the risk factors,
        credit score, and property type, presented by your request.

     • Profitability:
          Your application should show historic cash flow adequate to service the debt.

     • Management:
          Management must demonstrate experience in the industry and competence in
        production, marketing, finance and personnel management.

     • Collateral:
          Collateral must be sufficient to secure the loan.

     • Guarantees:
          Personal guarantees from owners, major stockholders and/or partners are required.

If your business falls within one of the following categories, it is ineligible for this loan.

Your loan request will be considered ineligible if you intend to use proceeds to:

Greater of 1% of loan amount or $5,000, depending on transaction size. A portion of the Fee is refundable, less documented out-of-pocket expenses, if lender elects not to proceed.

A one-time fee of 2 percent of the loan amount is paid by the borrower to SBC upon the issuance of a loan commitment unless the fee is approved to be included in the loan amount. Typical lender costs may also be incurred. Other loan closing costs normally associated with a business loan will also be incurred. Loan costs normally can be included in the loan if approved by the lender.

The basic lender's counsel fee is $1,000 and includes preparation of loan documents, assignments and allonges. The fee also encompasses the lender's legal costs. In the event that the transaction requires the involvement of outside legal counsel, this fee may be greater.

Other fees may be paid from either the Expense Deposit or at closing depending on the item and the loan amount. These fees include items such as: Appraisal Fee, BPO Fees, Environmental Reports, Structural Engineering Reports, Consultants or other professionals retained., Environmental Insurance, Survey, Flood Certificate, Credit Reports, Closing Agent Fee, UCC Searches, Recording Fees, Title Insurance, Notary Fees, and State and Local Taxes. These fees vary by loan and location.

A minimum of 10% tangible balance sheet equity is required at the time of issuance of a Loan Commitment. Equity is developed in accordance with generally accepted accounting principles. Feasibility studies may be required.

Most lenders require at least 10% capital injection. So, if you want a loan for $5,000,000, the lender will expect you to contribute $500,000, or have a minimum 10 percent tangible balance sheet equity. This percentage may fluctuate depending on your credit, collateral and other factors involved, but 10% is common.

Interest rates for loans may be fixed or adjustable. The rate is negotiated between the lender and borrower and is similar to those rates customarily charged to other borrowers in similar circumstances. Adjustable rates cannot be adjusted more than every six months (6 month adjustable). The rates are generally floating relative to Prime (lowest current New York Prime as published in The Wall Street Journal - not a higher Bank Prime), plus a percentage based on risk factor.

Lender addresses the business adequacy of equity, cash flow, collateral, history, management, and the current status of applicable industry in a written credit analysis.

     • Adequate cash flow to meet debt obligations and operating expenses
     • Adequate collateral value
     • Personal guarantee required for all owners

Borrower should posses management ability and experience in the field, feasible business plan, ability to generate cash flow profit, adequate equity committed or net worth in existing business and adequate collateral. Minimum tangible balance sheet equity, as defined by the lender, is 10% however, additional equity may be required. Collateral is normally a combination of real estate, equipment, inventory, accounts receivable and the loan to value is normally 75% maximum on real estate, 60% to 70% maximum on equipment and 60% maximum on inventory and accounts receivable. Debt service coverage is normally 1.2 minimum. Interest rates are normally adjustable from prime plus an amount based on risk factor. Processing time is normally 30 days and even faster when possible.

We share information submitted to us with those we represent and only in accordance with strict internal security standards, confidentiality policies and applicable laws. We do not share client information with other companies except in order to conduct our business, to comply with applicable law, and to protect against fraud. For privacy and security reasons all information that you submit to us is stored in our corporate computer files which are offline and only accessible to SBC.

After reviewing the loan, if you feel you fit the loan parameters and want to pre-apply, complete the "Express Loan Pre-Application" by clicking the "Pre-Apply" button below this paragraph, or at the top left of any page in the green border on our web site. An SBC representative will get back to you within a few days of receiving your application.

There is no fee to pre-apply
No additional documents and No credit reports
are required at this stage

The best way to know if we can assist you to obtain a loan is to complete our online "Express Loan Pre-Application" by clicking the "Pre-Apply" button above this paragraph. We'll respond with our opinion/decision within a few days.

If you want an answer to a simple question or prefer to not complete the online application, please contact us by e-mail below:

We can best serve you when you answer the following questions in your e-mail:

Due to heavy volume, initial contact with SBC should only be by completing the Pre-Application form or by Email. Our Email address is accessed by clicking on the "Email link" below. Thank you for your patience and understanding.

CONVENTIONAL LOAN INDEX