Over Thanksgiving break, we received a loan request for our private money fund. My underwriter was on vacation in Florida and couldn't begin reviewing it until Monday, December 2, 2024. The loan in question was an SBA Bridge Loan, a specialty of ours, with a 90% loan-to-value (LTV) request.
Despite the timing challenges, we closed the loan in just a few days. The delay was caused by a glitch in the title company's system, which took a couple of days to resolve. Once we had the title, it took us only a day to prepare the closing package and deliver the funds to the closing agent. A 90% LTV loan, closed that quickly, is no small feat!
Why 90% LTV?
Many may wonder why a bridge fund would go as high as 90% LTV—most wouldn't. The answer lies in our extensive experience with SBA loans and confidence in underwriting the exit strategy. If I'm confident the loan can be refinanced within six months, the risk is minimal.
In fact, we’ve never had a default or even a slow payment. These loans are a perfect fit for us.
The Borrower’s Story
In this case, the borrower was a successful insurance agent with a growing income who wanted to purchase a property for his business. He had already secured a loan commitment from an SBA lender, but there was a catch: the lender couldn’t close until the city issued permits for minor interior changes.
Although these changes were purely cosmetic, permits were still required—a process that often takes 4-5 months. Unfortunately, the seller wasn’t willing to wait that long. That’s where our fund stepped in.
We matched the borrower’s SBA approval at 90%, enabling the seller and Realtors to get paid immediately. The borrower secured his property and now has the time he needs to navigate the city’s permitting process. These permits are always issued eventually, but they can be a time-consuming hassle.
Looking Ahead
As we move into the new year, SBA loans remain a strong option for many businesses looking to expand, buy out partners, or acquire property. Our Bridge to SBA products offer a fast, reliable solution to help businesses close deals quickly while navigating delays like permitting.
If you’re looking to close by the end of the year, we can make it happen—but we need all required documents by Wednesday, December 18, 2024. Our process is quick, and we’re here to help you move forward with confidence.
The headwinds facing the economy aren’t new—we’ve been managing them all year. Despite these challenges, businesses are thriving, and there’s still a place for dreamers and doers. These dreamers are shaping the future, and we’re here to help bring their visions to life.
Karen
Give us a call today to discuss your commercial finance needs or get started by filling out this form!
Karen Schimpf
(512) 358-1511
[email protected]
www.ApplyCommercialLoans.com
