Business listings
SBA & Major Lender Business Loan Guidelines
1. Start Ups Limited to the following
Medical Professionals: MDs, Dentists, Veterinarians
Franchise Tier I only.
Management Experience:
Medical Professionals 2 years post residency
Franchise Tier I 3 years management experience or 2 years in same industry.
Restaurant Franchise Tier I 3 years restaurant manager experience.
Injection Requirement:
Medical Professionals - 15%
Franchise Tier I 20%
Collateral Requirement:
Medical Professionals up to $500,000 N/A
Over $500,000 75% of project costs for real estate
Franchise Tier I 100% of loan needs to be collateralized and 75% of the project costs must be for real estate.
Maximum Start Up loan: $2,000,000
2. 504 Start up Loans Real Estate Based Transactions Only
Start Ups Limited to the following:
Medical Professionals: MDs, Dentists, Veterinarians
Professionals: Architects, Audiologists, CPAs, Dental Labs, Engineers, Lawyers, Occupational Therapists, Optometrists, Speech Therapists, Pharmacists and MAI Appraisers
Management Experience:
Medical Professionals 2 years post residency
Professionals - 2 years
Injection: 10%
Collateral Requirement: 65% LTV
Maximum Loan Amount: $3,000,000
This is Major Lenders first mortgage.
504 Company provides a second mortgage from $1.5MM to $2.0 MM. Depending on project, total financing provided $4.5MM to $5.0MM
504 Company can provide a second mortgage to $4.0MM for manufacturers only. Total financing provided up to $7.0 MM.
Other: No ground leases.
3. 504 Start Up Loans
Start ups limited to Restaurant Franchise Tier I only and Franchise Tier I.
Management Experience:
Restaurant 3 years restaurant management
Franchise Tier I 3 years general management experience or 2 years in same industry.
Injection:
Restaurant Tier I 20%
Franchise Tier I 15%
Collateral Requirement: 65% LTV
Maximum Loan Amount:
Restaurant Tier I - $2.0 MM; this is major lenders first mortgage.
Franchise Tier I - $3.0 MM; this is major lenders first mortgage
Other: No ground leases.
4. 7A Business Acquisition
Industries: Medical Professionals: MDs, Dentists, Veterinarians
Professionals: Architects, Audiologists, CPAs, Dental Labs, Engineers, Lawyers, Occupational Therapists, Optometrists, Speech Therapists, Pharmacists and MAI Appraisers
Management Experience:
Medical Professionals 2 years post residency
Professionals - 3 years working in the profession
Debt Coverage: 1.25 for last 2 years plus interim.
Injection: 15%
Collateral: Must include real estate.
Medical Professionals 45% of loan needs to be collateralized.
Professionals 50% of loan needs to be collateralized.
Example:
$1.0MM loan would need $500,000 in collateral for a professional business acquisition. (This is after the Lender discounts the collateral provided).
Maximum Loan Amount: $2.0MM
5. 7A Business Acquisition
Industries: Franchise Tier I
Restaurant Franchise Tier I
General Industries non franchise
Management Experience:
Franchise Tier I 3 years general management experience or 2 years industry management experience.
Restaurant Franchise Tier I 3 years restaurant manager experience
General Industries non franchise 3 years direct industry management experience. (Please see prohibited list for industries that some major lenders can not lend to.)
Debt Coverage: 1.35X for last 3 years plus interim.
Injection: 20%
Collateral: Must include real estate.
Franchise Tier I and General Industries Up to 1.00MM 45% of loan needs to be collateralized; Over 1.0MM 67% of loan needs to be collateralized.
Restaurant Franchise Tier I 80% of loan needs to be collateralized
Maximum Loan Amount: $2.0MM
6. 504 Business Acquisition - Real Estate Based Transactions Only
Car Washes are prohibited.
Industries: Medical Professionals
Other Professionals
Restaurant Franchise Tier I
Franchise Tier I
General Industries
Debt Coverage: 1.25X for last 2 years plus interim. (Medical and other professionals)
1.35X for last 3 years plus interim. (Restaurant and Franchise Tier I and General Industries)
Injection: Medical professionals, other professionals and Franchise Tier I 10%
Restaurant Franchise Tier I and General Industries 15%
Collateral: 65% LTV
Maximum Loan Amount: $3.0MM for CIT first mortgage
$2.0MM for Restaurant Franchise Tier I
Other: No ground leases
7. Existing Businesses Under Current Management
Gas Stations/C Stores are prohibited.
Management Experience: 2 years for 7A refinance real estate
Debt Coverage: 1.25 for last full fiscal year plus interim.
1.35 for restaurants
Injection: 0%
Collateral: 90% of the market value of real estate (LTV not to exceed 100%)
Maximum Loan Amount: $2.0MM
Other: No ground leases
8. Existing Businesses Real Estate Purchase
7A 504
Management Experience: 2 years 2 years
Debt Coverage: 1.25 last fiscal 1.20 last fiscal
year plus interim year plus interim
1.35 for restaurants, 1.30 for restaurants
chiropractors and
automotive for last
fiscal year plus
interim.
Injection: 10% 10%
15% for restaurants
Collateral: 45% of loan needs 65% LTV
to be collateralized
Maximum Loan Amount: $2.0MM $3.0MM
$2.0MM restaurants. This is major lenders first
mortgage.
Other: No ground leases No ground leases
9. Dunkin Donuts Baskin Robbins
Start up or Business Acquisition
7A Loan 7A Loan 504 Loan
Dunkin Only or Baskin Only Real Estate
Dunkin/Baskin Dunkin Only
Combo or Dunkin
Combo
Management
Experience: 2 years Dunkin 2 years 2 years Dunkin
Experience Management Experience
Experience
Debt Coverage: 1.25 Start Up 1.25 Start Up 1.25 Start Up
1.20 Bus Acq. 1.20 Bus Acq. 1.20 Bus Acq.
Required for each of the last 2 years plus interim.
Injection: 25% 30% 10%
Collateral: Start Up Start Up
Up to $700,000: Up to $500,000: 65%
No real estate No real estate
required. Required.
Over $700,000 Over $500,000
58% of loan needs 58% of loan needs
Collateral (after Collateral (after
Discounts.) Discounts.)
Business Acq. Business Acq.
Up to $1.0MM: Up to $750,000: 65%
(No real estate (No real estate
Required.) Required.)
Over $1.0MM: Over $750,000:
58% of loan 58% of loan
Collateralized Collateralized
(after discounts.) (after discounts.)
10. Franchise Tier I List
Arbys
Baskin Robbins
Buffalo Wild Wings
Chilis
Culvers
Dennys
Dunkin Donuts
Fuddruckers
Goddard School
Golden Corral
International House of Pancakes (IHOP)
Jack in the Box
Kentucky Fried Chicken (YUM Brand)
Kiddie Academy
Kids R Kids
Pizza Hut (YUM Brand)
Pizzeria Uno (Uno Chicago Grill)
Primrose School
Ruby Tuesday
Steak N Shake
The Original Pancake House
11. Prohibited Industries
Below list of industries and businesses now or hereafter prohibited by the SBA or Major Lenders :
Adult Entertainment
Agriculture, Crop or Livestock
Amusement Parks
Automobile Dealers, New & Used
Cemeteries
Coin Operated Amusement Devices
Employment Agencies
Equipment Rental & Leasing
Fitness, Health, Sports & Recreation Clubs (bowling facilities allowed)
Gas Stations with or without convenience stores
Golf Courses (start up)
Hazardous Waste Treatment, disposal service, recycling businesses
Hotels, Motels
Ice Cream Store or Parlors (EXCEPT Baskin Robbins)
Ice Skating Rinks
Loan Brokers, Mortgage Loan Brokers
Lumberyards, Retail and Wholesale
Microbreweries and Brew Pubs
Photocopying or Duplicating Centers
Printing, Commercial, Commercial Graphics
Publishers or Retailers of printed material with religious or political content
Publishing
Quarries
Real Estate Agents
Record and Pre Recorded Tape Stores
Rent to Own businesses
Vending Machine Operators
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