The first bank essentially just ran out of money. They are lucky (the first bank) we were able to get the new SBA 7a loan closed, otherwise the borrower would have had a very good lawsuit and more frustration to motivate him to pursue suing them for damages. Unfortunately we are seeing more loan requests like this cross our desk.
Atlanta, Georgia (PRWEB) June 15, 2009
Commercial Finance Advisors is pleased to announce the recent funding of an SBA 7a loan in Atlanta, Georgia in the suburban community of Buford. The project was a combination of a refinance, construction, equipment and working capital for the borrower, who is a doctor.
"There was a couple of interesting components of the loan. One was that the borrower had already closed on the request with another bank, which after funding part of the loan backed out… It was a construction loan. This put the borrower in a terrible position and to say that he was frustrated and very concerned is an understatement. He had to still make monthly payments on the debt even though the bank did not hold up their end of the bargain," comments Jeff Rauth, President.
More info on SBA 7a Loans: SBA 7a loans
"The first bank essentially just ran out of money. They are lucky (the first bank) we were able to get the new SBA 7a loan closed, otherwise the borrower would have had a very good lawsuit and more frustration to motivate him to pursue suing them for damages. Unfortunately we are seeing more loan requests like this cross our desk."
SBA 7a loans are designed to help small business owners refinance or purchase new buildings or equipment for their business. There are a couple of very strong benefits to the program. One is that they can go up to 85% loan to value on refinances (and 90% on purchases), which is a huge advantage as property values continue to decline in most markets across the nation.
Another is that the underwriting standards for the SBA 7a loan can be very flexible, which allows loans that don't fit conventional standards to still get funded. In addition, the program has the ability to roll in many different types of collateral, such as real estate, equipment, and good will. This is rare in commercial financing. Borrowers are still able to get working capital and to consolidate high interest business credit cards as well.
However, not all SBA 7a lenders are the same. Just like typical commercial real estate loan, borrowers need to know who the aggressive lenders/banks are, and how to submit loans correctly to get them done. 80% - to 85% of all SBA lenders are still either not lender or are still very conservative. Focusing on the top 10% is critical.
Commercial Finance Advisors, Inc works with borrowers nationwide, on loans from $400,000 - $5,000,000. Most of their clients have dealt with many local banks and are "fed up" with getting the run around and now need to get their loan closed.
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