Included within this category are auto repair shops, used car lots, quick-lube facilities, tire repair shops.
$150,000 - $2,000,000
15, 20, 25 Years
First position mortgage as certified by title search and title policy on property. Must have a first security interest under UCC-1 on all business assets of real estate and operating entities.
Determined by pricing matrix.
Debt Service Coverage Ratio:
Minimum DSCR of 1.00x depending upon property type, age, physical condition, location, and competitive market position.
Up to 80% CLTV of MAI appraised value conforming to FIRREA.
Borrower must justify proceeds to be used for business purposes only. Minimum 2 years ownership; maximum LTV 80%.
The borrower may be required to contribute monthly to an escrow account for real estate taxes and property insurance. The borrower may also be required to establish a monthly capital replacement escrow reserve equal to the greater of (a) 5% of gross revenues or (b) an amount to be determined on the basis of an engineering report and site inspection.
Complete Summary Appraisal required.
Environmental Insurance/Screen or Phase 1:
No survey required if title company agrees to delete the standard exceptions from the title policy.
The borrower shall establish a remediation/repair reserve at closing equal to 125% of required deferred maintenance repairs as indicated in the environmental and architectural/engineering reports.
U.S. citizens, permanent resident aliens, non-permanent resident aliens (with restrictions); majority principal owners cannot be on probation or parole.
Must be personally guaranteed by all 20% or greater owners of real estate or operating entity.