Below are recent subprime SBA loans we provided for borrowers who were turned down by other SBA lenders or didn’t believe they could qualify for SBA financing. All rates were prime + 2.75% (currently 7.5%), the same rates most conforming SBA lenders charge.
The problem stems from trying to teach financial responsibility too late in life, says Noah Grayson, president and founder of Norwalk, Conn. -based South End Capital. He advocates introducing young people to finance at the same time they’re learning history, algebra and other standard subjects in school.
South End Capital Corporation (SECC), the nationally recognized, non-conforming real estate and business lender, is pleased to announce a plethora of innovative program and process improvements set to take effect immediately.
South End Capital is pleased to announce the closing of this $525,000 owner-occupied office refinance loan in Alabama. The borrower’s short-term loan had expired in March of 2019 and the current bank would not offer a refinance. A conventional or SBA loan was not possible with the current loan maturity date passed, and the borrower in need of an alternative income documentation loan.
We provided a $1,205,000, 167% LTV loan which included about $300K of working capital and consolidated $900K of debt. The property housed the borrower’s business and primary residence. Monthly business debt was reduced from roughly $14K to $9K. The final rate was 8.25% and was amortized over 25 years.
We are pleased to announced the funding of this low documentation refinance loan secured by a 3 building property comprised of a used auto dealership, an auto-body shop and an auto-paint shop. The co-borrower had a 667 credit score but we underwrote the primary borrower’s higher score and provided a 5 year fixed, 30 year amortized loan at 7.5%.
South End Capital has recently announced the closing of 6 subprime SBA loan closings. These loans were provided to business owners who were previously shutout of financing from other SBA lenders. Borrowers with low credit, past derogatory issues, and unique situations are all considered under South End Capital’s program.
Starting today our SBA underwriting fee will be waived for first responders (police, firefighters and EMS). This fee waiver will constitute a savings of up to $2,500, and will enable first responders to proceed through our SBA loan process up until the issuance of a loan commitment, with zero out-of-pocket costs.
Starting today our SBA underwriting fee will be waived for any veteran of the US armed services. This fee waiver will constitute a savings of up to $2,500, and will enable veterans to proceed through our SBA loan process up until the issuance of a loan commitment, with zero out-of-pocket costs.
We refinanced the 1st mortgage on this TX warehouse, paid off $109K of IRS tax liens and provided $15K of cash-out. We required no tax returns for this 75% LTV loan and we delivered a 5 year fixed, 30 year amortized rate at 8.625%.
We are pleased to announce that we have provided $230,000 to a Gas Station / C-Store and $220,000 to an Emergency Response Service via our Subprime SBA program. Both loans carried an 8.25% interest rate, were amortized over 10 years and had no prepay penalty.
US Business News issued a press release today announcing the winners of their 2019 Finance Elite Awards. South End Capital led the pack in the non-conforming commercial real estate category and was further selected as a featured lender in their awards publication. Noah Grayson, South End Capital’s President was interviewed for the article.
In 29 days we funded $252,000 for a 70% LTV auto-repair warehouse purchase loan for a borrower with 654 credit, who wanted a fast and affordable permanent mortgage. We underwrote off bank statements only and paid for the appraisal upfront (The borrower only paid $500 out-of-pocket which we credited back at closing). The interest rate was 9%, fixed for 5 years and amortized over 30 years.