Business Loan Capital’s Conventional Loan Program is for small businesses requiring “brick and mortar” financing with long-term, fixed-rate financing for the acquisition or refinance of commercial real estate. Projects are secured by a 1st Deed to Trust/Mortgage on commercial real estate, having a maximum Loan to Value of 70%.
Maximum Loan Amount
• 1st TD – $5,000,000
Maturity and Amortization
• Conventional 1st Deed of Trust/Mortgage – Up to 25 year Amortization with a 3 Year Term (5 Year Term can be considered on a case by case basis)
• Multi-Purpose Properties – Up to 75% LTV
Conventional Financing Eligibility
Subject property must be at least 51% occupied by the owner. Loans will not be made to entities engaged in speculation or investment in rental real estate.
Conventional Loan Eligible Use of Proceeds
• Conventional Loans funded by BLC will be primarily used for the refinance or acquisition of commercial real estate.
Conventional Financing Ineligible Use of Proceeds
The Conventional Loan loan program cannot be used for working capital, inventory, or business acquisitions.
Eligible Property Types
• Multi-Use: Warehouse, Office, Industrial, Medical, Flex, Auto Body, Retail
• Special Use: Mini-Storage, Cold Storage, Auto Repair, Assisted Living
Rate Option / Fees
• Conventional 1st Deed of Trust/Mortgage – Up to 5 year Adjustable Rates available (Fixed Rate options can be considered on a case by case basis).
• Loan Fees – Lender will typically charge up to 1% loan fee.
• Prior Ownership and Management Experience
• Minimum FICO of 650
• All loans are Full Recourse and require the personal guarantee of any and all individuals or entities holding 20% ownership interest or more.
• 1.0x Minimum Debt Coverage Ratio (DCR) for the most recent FYE and Interim period is required.