Commercial Mortgages

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I have access to a wide range of commercial financing alternatives to SBA loans. Commercial mortgages backed by the Small Business Administration (SBA) are an attractive option for business owners because of their low rates and business-friendly terms. And the lenders who offer SBA loans like them as well – mainly because the U.S. government guarantees a portion of each loan. The problem is that all small business owners are not able to qualify for SBA loans. A lot of business owners who have sought this type of financing find this out and wonder if there are any alternative solutions available in today’s competitive market. There are. Let’s set the stage. The SBA reports that around half of the 28 million small businesses in America are operated outside the home. If you consider the fact that a sizable number of business owners are not able to qualify for SBA loans, the need for alternative financing is clear. Here are some of the most common reasons why small business owners fail to qualify for SBA loans, followed by fallout alternatives you as a business owner can take advantage of:

Common reasons for SBA loan rejection

Borrowers who fail to qualify for SBA loans may not know that I have other options. Here are 2 alternative solutions:

1. Short-term bridge financing

If you have a pressing need for financing, a short-term solution may be the best option to ensure you get the funding you need right now. Then we can work to address the reason for your denial and, if possible, correct it in time for another refinance down the road.

For instance, you may not be able to secure an SBA loan because of your business’ projected cash-flow. If you are confident you can improve earnings within the next year, it could be a smart move to take out a bridge loan for the time being and try for the SBA loan again in a year’s time. Since this type of loan is really just a stop-gap measure, it would be wise to remember this as part of a larger plan for your finances where I can assist you long term.

2. Non-bank alternative programs

Not all business owners like yourself who fail to qualify for an SBA loan will be willing to settle for a hard money solution. I get it and I have other options too that can represent an equivalent value to SBA.

Here are 3 solutions I can offer to you as a business owner looking for an SBA alternative:

• Complete Program
If you need flexibility beyond what an SBA lender can offer maybe a better fit would be a standard non-bank solution, such as my Complete Program. Many of the SBA restrictions on the use of loan proceeds and general borrower/business makeup are lifted, allowing a wider range of business owners to secure the funding they need. The Complete Program does feature higher interest rates than a typical SBA solution, but the increased flexibility and expedited transaction process are a reasonable trade-off for many business owners.

• Stated Owner-Occupied Program
This stated income program is a smart alternative for business owners who struggle to provide the documentation necessary to secure an SBA loan and may just be what you need.

The Stated Owner-Occupied Program utilizes a proprietary algorithm that enables data to be pulled from various sources, meaning you can get approved without having to provide business financial statements or personal/business tax returns. In fact, the only documents needed at the beginning of a transaction are a loan application and credit report.

Now I understand that you may be familiar with stated income alternatives and likely associate any such program with unfavorable terms and high interest rates. However this is not really the case considering it is a viable solution option. The stated income program gives business owners the opportunity to secure a fully-amortizing, long-term loan at a competitive interest rate – much like an SBA loan.

• Bank Statement Program
The Bank Statement Program is an innovative solution for credit-worthy borrowers who would rather use bank statements instead of tax returns to prove their income.

To determine whether you are able to repay a loan, there will be a 12 consecutive months of bank statements review for the business’ operations to determine gross revenue. Then an industry standard expense factor is applied to determine the net cash flow available to cover the business, personal, and subject property debt obligations and debt service coverage. It’s a simple way for successful business owners to qualify for commercial mortgage financing.

I am sure that I can be assistance if you are a business owner turned down by a SBA lender or know in advance that you won’t qualify. Please contact me at your convenience to discuss your scenario and we will work on a solution together – (813) 404-9361 or .

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