Commercial Loans  >  Small Loan Program

Program Overview

Purpose:Adjustable or fixed rate, non-recourse loans on income producing properties.
Loan Size:$1,000,000 to $3,000,000
Property Types:Multi-Family, Industrial, R & D Flex, Office, Retail, and Self-Storage.
Term:10 to 20 year maturities.
Interest Rate:Fixed interest rates set at spreads currently ranging from 150 to 275 basis points over corresponding Treasuries, depending on property type and underwriting criteria.
Loan to Value:Up to 75% loan to value. Will consider up to 80%.
Minimum:Minimum of 1.25x for Multi-Family, Industrial, Anchored-Retail.
Debt Coverage:Parks; 1.30x on other Retail, R & D Flex, Office and Self-Storage, based on underwriting criteria.
Liability:Non-recourse to Borrower, except for the usual carve-outs with respect to fraud, misapplication of funds, waste, property taxes, and environmental issues.
Processing Fees:1% Origination Fee on transactions.
Prepayment:Defeasance typically permitted after initial lock-out period. Prepayment without penalty permitted during last 3 months of term.  For additional charge, prepayment may also be permitted after lock-out period with prepayment fee to be the greater of a yield maintenance formula or 1% of amount prepaid.
Closing Process:Typically within 60 days from receipt of a complete application from Borrower.
Other Costs:Typically none.  Lenders flat Fee + Preparation of Lender's standard loan documentation, appraisal, environmental insurance, property condition survey, and closing costs are all included in the processing fee.
Assumption:Yes, one time to a qualified buyer approved by Lender for a 1% assumption fee.
Amortization:15 to 30 year schedules available on most transactions, subject to underwriting criteria.
Rate Lock:Competitive Rates based on Borrowers credentials and Financials.  Available upon receipt of complete application, subject to borrower qualification.