We Can Finance Tough Deals!

SBA loans can be approved on historic cash flow coverage based on just the most recent complete tax year and interim financial statement confirming that the positive trends are continuing into the current year.  In comparison traditional conventional lending requires cash flow coverage based on the average of the cash flow calculated from the last two complete tax years.

In the case where the most recent tax year plus the interim financial statements do not identify adequate cash flow coverage, projected income can be used.  This is important when the proposed project is an expansion to an existing business that will increase future income or a business acquisition where past year’s expenses will be reduced or eliminated.

In the case where no tax returns or financial statements exist, such as a new business start-up, projections with reasonable assumptions combined with a very credit worthy borrower with experience operating such a business can be adequate to obtain an SBA loan.

Special purpose properties are specific to the type of business operating from the property and would be extremely costly to convert to an alternative use.  Obvious examples include Car Washes, Hotels, Retirement Homes, and Day Care Facilities.  Because of their special nature, conventional financing is usually only available at extremely low advance rates; generally no more than 50% loan to value.  SBA financing can be used for advance rates up to 85% loan to value.

  • Limited Cash Flow Coverage
    • One Year + Interims
    • Positive Trends, Will Listen To a “Story”
  • Projection Based Deals

    • Expanding Business or “creative” add backs
    • Starts Ups – New Business opportunity
  • Special Purpose Properties
    • Car Washes
    • Flagged Hotels
    • Retirement Homes
    • Day Care Facilities