Below are a few examples of successful loan completions. If you're having trouble getting your local bank to pull the trigger, contact us!
Manufacturing Co. Succession Strategy
The Goal: A sheet metal fabrication company wanted to transfer ownership from Mom and Dad to their two sons.
The Deal: We closed a $4.3 million SBA loan, which was secured by commercial real estate, equipment, receivables and inventory. The loan has an 18-year blended amortization and is fully amortizing, eliminating the need for costly renewals every 3-5 years.
Bank Solutions Bonus: We also structured the transaction in conjunction with an estate plan with equitable treatment for a daughter who was not involved in the family business.
Towing and Recovery Start-up
The Goal: Business owners with a successful track record in an unrelated business, but grew up in family towing and recovery business, wanted to start a new business.
The Deal: Acquisition of wreckers, a manufactured building, and working capital from a $155,000 SBA loan got these entrepreneurs off to a good start with a 7-year amortization to help with cash flow that would have been problematic without SBA.
Auto Parts Franchise Expansion
The Goal: Finance 20% annual growth situation to give small family business a huge growth opportunity.
The Deal: $150,000 Line of Credit allowed the business to increase inventory levels to absorb their 20% annual growth by purchasing wisely, taking advantage of quantity and prompt payment discounts.
The Product: With its 10-year term, the SBA Cap-Line, secured with investment real estate and inventory, was the perfect product for a long-term solution.
Assisted Living Facility
The Goal: Underserved rural area needed assisted living facility.
The Deal: A $5 million USDA B&I guaranteed loan financed the construction of a new facility. The owner’s equity included “family land” where the facility was constructed and participation in the project by the general contractor. Since only real estate was included in the loan, it amortizes over 30 years.
Bank Solutions Benefit: The longer amortization and 18 months of interest-only payments made the company’s ramp-up period cash flow positive. The USDA provided an 80% guarantee which returned a 1.14 premium when sold on the secondary market.
The Goal: Acquisition of a profitable company as a hub for a new process.
The Deal: Because the company had many years of development cost in intellectual property for a future process from their by-products, it did not have the cash flow history to support the acquisition stand-alone. Our experts structured a reverse merger to buy out the shares of the target company partners and complete a $3.9 million USDA B&I loan secured by commercial real estate, equipment, receivables and inventory.
Multi-family and Healthcare
The Goal: Refinance of a 124-unit apartment complex.
The Deal: An $11 million refinance using HUD loans (a first cousin to government guaranteed lending, with the proper approvals) allowed our bank client to make a large loan without using bank funds which would affect Tier-1 Capital.
Bank Solutions Benefit: When sold on the secondary market, the loan created over $500,000 of non-interest income for the bank.
Construction Company Expansion/Refinance
The Goal: Acquisition of a second location, and secure commercial real estate with long-term financing.
The Deal: A $3.5 million SBA loan solved both the construction company’s goals. In addition, the loan refinanced expensive heavy equipment leases, improving cash flow. An addition of a $200,000 SBA Cap-Line helped the company pay vendors on time and take advantage of discounts while balancing project completion and client draw schedules.
Bank Solutions Benefit: The bank booked a 112 premium on the guarantee sale on the secondary market.
Real Estate Firm Office
The Goal: Small business, which occupied 51% of its company headquarters, wanted to refinance and lease the balance.
The Deal: A $750,000 refinance could have been done with either a SBA or USDA B&I guarantee. The 80% guarantee of the B&I loan won the day.
Bank Solutions Bonus: Our tax experts successfully navigated tax lien issues for one of the principals in order for the loan to close.
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