Business Loans

Whether you are looking to grow your existing business, or start a new one,  the proper financing is critical for your success.  Our experienced lenders will help you identify your immediate and longer term financing needs.  With your help, we will structure the appropriate combination of financing solutions.  Some of the most common loans include.

• Term Loans

Term Loans are typically used for longer term working capital needs.  These needs can include:

Business Purchase/Expansion

Equipment Purchase

Inventory Purchase

Vehicles

• Line of Credit

Business Lines of credit are vital to provide the necessary flexibility for business owners.  They are typically used for:

Short term working capital

Financing accounts receivable

Smaller equipment purchases

• SBA Financing

SBA 7a Loans

SBA 7(a) loans are the popular Small Business Administration (SBA) business loans. The advantage of the 7(a) program is to provide business's the ability to get financing for growth and expansion.   The program works by participating lender funding the loan and will receive a guarantee of up to 75% of the loan amount from the SBA. This allows the lender to make loans to businesses that might not qualify for financing from other lenders..

To qualify for a 7(a) loan, you must be a for profit business,  and meet the SBA's size standards,  not have the ability to finance the loan internally,  and you must demonstrate the ability to repay the loan.

The 7(a) program is very commonly used to help finance new business franchise's

Borrower Benefits

-Long repayment terms, reducing monthly payments

-Low down payment of as little as 10%

-Financing available for most business types including Hotel/Motel, gas Station/conveniences stores, restaurants and day care facilities.

Loan Amounts            100,000 to 2.0 Million

Use of Proceeds

-Start-up franchise business

-Real estate - purchase, construction, renovation or refinance of commercial real estate for owner occupied properties

-Business acquisition - business , franchise or professional, or service business's

-Machinery & equipment - purchase or refinance

Terms

Rates are based on a spread over the Prime Lending Rate.  The rate will vary depending on specific strengths of the transaction.

The SBA Guarantee Fee is paid directly to the US Small Business Administration.  The amount of the fee waries based on loan/guarantee amount. 

SBA 504 Loans

The 504 program is for the purchase of fixed assets such as commercial real estate and machinery.  There are three parts to a typical SBA 504 Loan

-First mortgage loan of approximately 50% of the purchase price of the assets.

-SBA fixed rate debenture/second mortgage loan of approximately 40% of the purchase   price of the assets.

-Borrower contributes the remaining 10%. If the property is special use real estate, a 15% contribution is required by the borrower, and if the property is a special use and start-up operation, a 20% contribution is required. Special use properties are properties such as gas stations, motels, assisted living facilities that can only be used for the purpose that they were built.

Borrower Benefits

-Low down payment of only 10%

-Long repayment terms - reducing monthly payments

-Flexible rate options, including long term fixed rates

Use of proceeds

 -Purchase, construction or renovation of owner-occupied commercial real estate

 -Purchase of new equipment that has a useful live of 10 years or greater

Terms

                First Mortgage     

                                25 year, fully amortized

                                Fixed, and floating rate options available

                                Prepayment options available and set based on factors of loan

                Second Mortgage

                                20 years fully amortized

                                Fixed rate is determined at SBA guaranteed debenture sale

                                Fees set by Certified Development Corporation

                                Prepayment penalty during first half of loan term

• Private Financing

Benchmark Commercial Lending is a direct lender for select business owners throughout the Midwest.  Many of our clients are in the need of funds quickly to take advantage of their unique opportunities.  Typically these opportunities are funded for one year or less.  Some of the benefits of private financing include:

                Up to 100% financing available

                LTV up to 70 of collateral

                Approvals are quick- usually within 3 days of submission

                Close fast - usually within the week

                No minimum credit score required

                No income verification

                No pre-payment penalties