Net Worth Commercial Loan Requirement

[James LaFarr]

How strict are banks on the requirement of net worth being >= loan amount for commercial loans? is there a way to bypass it without having a partner?

[Evan Polaski]

@James LaFarr, to add to Wenda's comment, it will also depend on the actual lender. Every lender and broker I have ever dealt with for non-recourse and/or agency debt is strict on the net worth covenant. You could potentially find recourse loan options that are not looking at net worth, but in my experience those lenders have much stricter other covenants, i.e. 1.50 DSCR and higher reserve requirements.