Business Only Loan Program Highlights For Gas Stations and Convenience Stores
Business only transactions are for operating who are purchasing or refinancing the actual value or goodwill of the business with no real estate involved. Business only financing may involve the purchase of machinery and equipment. This is usually done with SBA loans. Even though the loan amounts are typically smaller than those backed by real estate, they usually require better cash flow and better qualified borrowers because of higher default rates due to the lack of collateral.
Types Of Financing:
|Acquisition (Going concern and equipment)|
|Machinery And Equipment|
$250,000 – $5,000,000
5,7, or 10 Years for Good Will, Machinery & Equipment or Working Capital
Prime + 1.75% – 2.75%
Loan To Value:
40 – 70%
1st Year 5%, 2nd Year 3%, 3rd Year 1%
|None To Minimal Lender Fees|
|Due Diligence Deposit|
|Customary Closing Costs|
|Construction Fee, if applicable, to offset monitoring costs|
|SBA Charges A Fee Of Approximately 3.5% (depending on loan amount and percentage of guarantee, usually 80%)|
|Owner Occupied Small Business|
|US Citizen Or Permanent Resident Alien Status|
|Good Credit / Character|
|Management Experience In Industry Or Related Industry|
|Reasonable Financial Statement Or Credible Projections|
|Business Must Meet SBA Size Standards|
First lien on machinery, equipment and inventory. Additional outside collateral may be necessary if leasehold improvements are substantial.
Loan decision usually made within ten days of receipt of all requested documentation.