Loan Criteria
The following Lending Criteria is intended to give you a good ideal of Basic Commercial Loan Criteria. These are general guidelines and by no means all inclusive.
Please note that Criteria is subject to change from Investor to Investor.
In general the following Lending Criteria is geared towards Small Business Loans that fit under SBA 7(a), SBA 504 or USDA B&I Loan Programs with Loan Amounts from $250,000 to $10,000,000.
Please also keep in mind we do have the ability to assist with larger Loan Amounts up to $100 Million and more on strong borrowers and on certain property types.
If you have any questions about a Loan Program please do not hesitate to contact us.
Basic Loan Criteria
Minimum Loan Amount:
$350,000.00 – will consider smaller loans on case by case basis
Maximum Loan Amount:
$10,000,000.00 - on Small Business
$100,000,000 – for Larger Companies
Lending Territory:
Nationwide
Loan Term Amortization:
Usually 20 – 25 Years on SBA or USDA Loans
Conventional Loans are normally 5 – 10 year loans amortized up to 30 years
Collateral:
First position mortgage as certified by title search and title policy on property. Must have a first security interest under UCC-1 on all business assets of real estate and operating entities
Debt Service Ratio:
Minimum DSCR of 1.25, exceptions on case by case basis, depending upon property type, age, physical condition, location, and competitive market position.
Loan to Value:
Up to 90% on on New Purchases and up to 80% on Refinances. Not all Borrowers will qualify for Maximum LTV’s
Loan Types Offered:
SBA, USDA and Conventional Financing as well as Private Funds are available through Alliance
Appraisal:
An MAI Appraisal will be required from an Approved Appraisal Firm.
Do not order the Appraisal – Investors are very strict about handling the Appraisal.
Upfront Deposits:
Alliance has a Processing Fee that is due upon signing a Commercial Fee Agreement. The exact amount of the Processing Fee will be disclosed in the Commercial Fee Agreement but runs in the range of $500 on smaller loans to $1500 on larger loans.
Additionally the Borrower will be required to put up a deposit for Third Party Reports such as Appraisals, Environmental Survey, Property Survey or other reports as the Investor may require.
Recourse:
Most loans will require all owners of 20% or more to personally guarantee the loan
Larger Loans may be available without recourse.
Loan Purpose:
Acceptable Loan purposes are for New Purchase, Rate and Term Refinances, Limited Cash Out Refinances, or Construction of a New Property
The above Loan Criteria is not all inclusive - please contact us with any questions regarding loan programs.
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