Through the 7(a) program, Grayson added, funds can be used for expenses like the purchase, refinance, renovation or ground-up construction of commercial real estate. Funds can also be used for expenses like working capital, equipment, inventory, partnership buyouts, debt consolidation, business purchases, leasehold improvements, expansions and more.

SBA 7(a) Loan Terms

Loans usually range from $25,000 up to $5 million, Grayson said. The rates can be fixed, but most lenders offer an adjustable rate, adjusted quarterly.

SBA 7(a) Lenders

• South End Capital

Commercial mortgage terms vary greatly, especially because they cover other types of loans. According to Grayson, terms can range from a one-year interest only loan to a 30-year fixed mortgage. Interest rates also vary and can start as low as 4% or as high as 12% or more.

…With smaller loans, “a preferred SBA lender may rely on other data points beside net income, such as [small-business credit scores], time in business, business credit and repayment history — and gross income — to determine eligibility,” Grayson said. 

As one of the nation’s top equipment lenders and tech-enabled loan marketplaces—we’re able to offer the most competitive equipment financing options available. Featured financing: We directly funded this 3-year term, 0% down payment freight truck purchase. We paid the referring partner an $8,000 referral fee.

Other lenders may be tightening guidelines but we’re adding more programs to help meet your financing needs! 25-year fixed commercial real estate financing up to 90% LTV for various property types, from $25K to $20M+, with rates from 5% (30-year fixed loans are available for investment residential property).

As one of the nation’s top commercial lenders and tech-enabled loan marketplaces—we’re able to offer the most competitive real estate and business financing options available. We directly funded a $2,530,000, 75% LTV, 6.75% rate, 25-year amortized SBA 7(a) loan to finance the purchase of a bar and lounge.

As one of the nation’s top equipment lenders and tech-enabled loan marketplaces—we’re able to offer the most competitive equipment financing options available. Featured financing: We directly funded this 4.58% rate, 5-year term, 0% down payment equipment purchase with a delayed payment.  

As one of the nation’s top equipment lenders and tech-enabled loan marketplaces—we’re able to offer the most competitive equipment financing options available. Equipment financing is available for most industries with rates starting in the 4% range, and with terms out to 7-years.

 

Stearns Financial Services Inc. (“SFSI”) today announced it has signed a definitive agreement with VersaHoldings US Corp. to acquire Stearns Bank Holdingford N.A. (“SBH”) and launch VersaBank’s expansion into the United States. Canadian-based VersaBank, a leader in digital banking and cyber security solutions, is acquiring SBH through its wholly owned US subsidiary, VersaHoldings US Corp, for an estimated US$13.5 million (subject to adjustment at closing).

Among the many recent loans funded by South End Capital was a 5.5% rate, 10-year amortized $2,096,300 SBA 7(a) loan for the purchase of equipment, inventory, and working capital for business expansion needs. South End Capital is a $2.3 billion balance-sheet lender and tech-enabled loan marketplace offering a full spectrum of business and real estate loans from $1K to $75M+.  

LendVer, the reputable database of vetted business and investment property lenders and service providers has finalized its review process for the 2022 Best Commercial Real Estate & Business Lender, and has selected St. Cloud, MN based South End Capital. Founded in 2009 by Noah Grayson as a nationwide, non-conforming commercial lender, South End Capital became a division of Stearns Bank N.A., a $2.3 billion financial institution, in June of 2021.

The 2021 Best of the Best ranking, released in the May issue of Independent Banker, is based on pre-tax return on assets (ROA) from the past three years, with banks divided into three asset segments. Stearns Bank has consistently been ranked within the top 10, and for 2021, has been ranked #9 in its peer group of banks with over $1 billion in assets [see the rankings].

This article will clearly describe the charges and costs of hard money loans (that are sometimes also called private money loans). This includes hard money rates and terms, fees, closing costs, and payments. There’s a lot to discuss, so let’s get started.

Grayson emphasizes three key factors that lenders prioritize before making lending decisions: Ability to repay the loan, the need for the money and how it will assist with a critical business need or growth, and the business and business owner’s overall creditworthiness.

“The number of employees the business has, or the amount of gross revenue (revenue received before expenses) doesn’t matter as much as the net income of the business (revenue after expenses) and the amount of time a business has been in operation,” Grayson says. “The higher the net income of the business and the longer the business has been in operation, the more financing options the business will have, and the more favorable terms will be available.”

South End Capital a division of Stearns Bank N.A., a trail-blazing commercial lender and tech-enabled equipment, real estate, and business loan platform, has announced another explosive month for equipment financing. The 723 equipment financings in March were delivered to start-up and established businesses of all kinds, and many were funded in hours and required the borrower to complete just a short verbal or 1-page application.