Bankable Terms for Un-Bankable Borrowers

Founded in 2009 as a nationwide, non-conforming commercial lender, South End Capital became a division of Stearns Bank, N.A., a $2.2 billion financial institution, in June of 2021. We offer mortgages secured by commercial and investment residential real estate, collateralized and uncollateralized business loans, and equipment financing. Our technology-enabled platform delivers a streamlined loan process, and we are committed to providing excellent service and innovative, affordable financing.

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Listed here are the most commonly asked questions about who we are and how we operate. If you have a question that is not found here, please do not hesitate to contact us and we will be happy to address it.

Is SEC a lender or a broker?

SEC is a division of Stearns Bank, NA, a $2.2 billion national financial institution. As such, SEC is an approved direct commercial real estate lender, investment residential lender, business lender, SBA lender, USDA lender, and equipment financing lender. SEC also administers a cutting-edge, technology-based intermediary loan marketplace that facilitates the placement of loans SEC cannot fund in-house, through a strategic network of lending partners. SEC lends in all 50 States plus Washington, DC.

What documents are required to close a loan with SEC?

The documentation required will vary depending on the financing type.

Equipment Financing less than $150K (and up to $350K in some cases) requires only:

▶ A completed verbal or 1-page application for approval, and a few basic items to fund (this is why we can fund in as little as 82 minutes!)

Larger financings up to $5M+ may require additional documentation such as tax returns and financials.

SBA, USDA, and Conventional business and real estate financing may require the following documentation (the below list may not be all inclusive and/or may not be applicable to your request). Don’t worry, we’re here the entire way to make the process streamlined and stress-free, and we utilize automation and DocuSign whenever possible:

▶ Personal Financial Statement

▶ Last 1 to 3 Years Business and Personal Tax Returns

▶ Business Debt Schedule (if applicable)

▶ Borrower and Individual Certification Forms (if applicable)

▶ YTD P & L and Balance Sheet

▶ Projections (if a start-up business or construction loan)

▶ Seller Tax Returns & Financials (if purchasing a business)

▶ Purchase Agreement (if purchasing real estate or a business)

▶ Construction Budget and/or Feasibility Study (if a construction or development request)

▶ Rent Roll & Operating Statement (if a cash-flowing investment property)

▶ Existing Appraisal or Environmental Reports (if applicable and available)

Documentation requirements for the participating lenders in our marketplace will vary by lender and transaction type. We only partner with the most technology-efficient lenders that have a track-record of performance. Many marketplace loans can fund with basic documentation in as fast as a few hours.

How do I signup as a Referral Partner with SEC?

If you are a lender, mortgage / loan broker, ISO, CPA, media company, finance / real estate professional, or entrepreneur looking to leverage our real estate and business loan programs to increase your revenue, then click here to register and be reviewed for approval as a Referral Partner (there is no cost to register and it only takes about a minute). Once approved you will be eligible to receive competitive referral fees on funded loans you referred to us, and view the status of your referral pipeline 24/7 in our comprehensive partner portal.

I’m a borrower, broker or lender—why should I work with SEC?

If you are a borrower looking for financing in this market, you know the process can be difficult and confusing. SEC is an experienced lender, founded in 2009, with a focus on customer service, transparency and ethical practices. We have always concentrated on providing non-conforming borrowers the most competitive and affordable loan options, and we have built a reputation as a market leader doing just that (Google us!).

If you are a broker or lender, then you know loan fallout is a costly issue that can be resolved and monetized by the right strategic partner. The loan programs SEC offers are genuine, and they perform. We utilize the latest technology to offer our partners the opportunity to convert their leads and fallout into significant revenue. We operate as your back-office so that you can focus your effort on what’s most important to you. We offer competitive referral fees, volume incentives, and additional benefits such as co-branded loan referral links and referral tracking. Once approved you’ll receive access to our innovative partner portal where you can view the status of your referral pipeline 24/7 and manage your account.

Does SEC charge upfront fees?

No. SEC charges no upfront or application fees. After a borrower signs and accepts a term sheet, he/she will be responsible for the payment any required due diligence fees (if applicable), such as an appraisal or environmental report fee.

Does SEC charge loan points and/or fees at closing?

SEC charges standard origination and closing fees. Because we are a division of a bank, our fees tend to be lower than our competitors. We are happy to provide a fee estimate upon request so there are no surprises.

How long does it take to close a loan with SEC?

Closing time depends on the financing type, but we prioritize speed throughout the loan process. Equipment and marketplace business financing can be approved and funded in less than a day. Real estate, SBA, and USDA loan approval can occur in a matter of days (after receipt of a completed loan application), with the entire funding process taking approximately 45 to 90 days.

Does SEC offer loan programs outside of the United States?

We offer loan programs in all 50 states plus Washington, DC. We do not offer any loan programs in any other countries.

What collateral will SEC lend against?

Only commercial real estate, 1 to 4 unit non-owner occupied residential properties held (or to be acquired) for investment purposes, businesses and hard business assets (i.e., equipment, machinery, etc.) are eligible for financing under our programs. SEC can also provide business financing without any collateral in a number of cases. We do not offer financing on owner-occupied residential properties, securities or any other types of collateral.

Are Referral Partners, loan brokers, or third parties ever considered representatives, agents or employees of SEC?

No. SEC approved Referral Partners are only authorized to refer SEC eligible borrowers for potential financing. SEC approved Referral Partners are independent, third-party individuals and/or companies, are not subsidiaries, agents, or employees of SEC, are not authorized to make representations, or conduct business on SEC’s behalf, nor commit SEC to any obligation. Any third-party found to be making a claim of legal affiliation with SEC, a representation or commitment on behalf of SEC, or requesting funds on behalf of SEC, will be viewed as having committed fraud and be prosecuted to the fullest extent of the law. If you feel you have encountered an individual or entity committing such fraud, falsely issuing documentation on behalf of SEC, or attempting to collect funds on behalf of SEC, please contact us immediately at fraudprevention@stearnsbank.com.

Customer Support

(320) 202 – 6106

4140 Thielman Lane
St. Cloud, MN 56301