SBA Lending Division SBA Lending Division October 2015.
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SBA Lending SBA Lending Division Division October 2015
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Proprietary 3 How can SBA products support your customer’s credit needs? The U.S. Small Business Administration’s Goals: Educate, counsel, assist, protect and promote business enterprise SBA provides a number of financial assistance programs for small businesses that have been specifically designed to meet key financing needs, including debt financing, surety bonds, and equity financing SBA Loan parameters provide more flexible options versus conventional lending! Lower cash injection requirements into a project Higher LTV Longer Terms/Maturity Lower monthly payments
Transcript of SBA Lending Division SBA Lending Division October 2015.
SBA Lending DivisionSBA Lending Division
October 2015
Proprietary 2
Convenience & Advantage of TD
1300+ Convenient locations Maine to Florida
Full range of financial products serving 18+ million customers
Dedicated SBA Loan Officers, Underwriters, Closers & Servicing team
Top SBA Lender in the US
#1 SBA Lender in New England
#1 SBA 504 Lender in Capital District
533 closed loans Preferred Lender status from the SBA
Proprietary 3
How can SBA products support your customer’s credit needs?
The U.S. Small Business Administration’s Goals: Educate, counsel, assist, protect and promote business enterprise
SBA provides a number of financial assistance programs for small businesses that have been specifically designed to meet key financing needs, including debt financing, surety bonds, and equity financing
SBA Loan parameters provide more flexible options versus conventional lending!
Lower cash injection requirements into a project
Higher LTV
Longer Terms/Maturity
Lower monthly payments
Proprietary 4
Product OfferingProduct Offering
TD Bank, SBA Division
Express Loans Available with 504 & 7a Loans
7a 504 Express Loans USDA CAP Lines EWCP
*All loans subject to approval
Proprietary 5
Use of Proceeds
We use SBA products as a credit enhancement and not a credit shield
Equipment, Inventory and Leasehold Improvements
Construction and Renovation
Partner Buyout and Management Succession
Working Capital Line of Credit
Commercial RealEstate Acquisition
Debt Refinance
Working Capital and Line of Credit available in conjunction with the products above
Franchise Financing
Proprietary 6
TD Bank, SBA Division
7a Loan Summary7a Loan SummaryUse of Proceeds: Real Estate Purchase, Refinance, Construction, Business Expansion, Equipment Purchase, Business Acquisition, Partner Buyout & Franchise Financing.
Loan Size Advance Rate
Terms Advance Rates
Fees Rates
$350,000To
$5,000,000
SBA Guarantee up to 75%,
Max Guarantee $3,750,000
Up to 90% of project costs
Up to 25 Years
Fully Amortized
No Balloons
Up to 90% on Real Estate
Up to 100% on
Machinery and
Equipment
Up to 85% on Business Acquisition
One Time SBA Guarantee Fee Paid to the SBA
Construction Fee may vary
Variableand
Fixed
Working Capital and Lines of Credit available with 7a Loans. *All loans subject to approval
Proprietary 7
SBA 7a vs. Conventional
Conventional
Purchase Price: $1,000,000
Cash Injection: $250,000
Fee: $10,000
Closing Costs (est.) $15,000
Loan Amount: $750,000
*Monthly Payment: $4,950
Total cash required: $275,000
*loan based on a ten year term with a 20 year amortization at indicative rate of 5%.
SBAPurchase Price: $1,000,000Cash Injection: $100,000SBA Guaranty Fee: $25,000
Closing Costs (est.) $15,000Loan Amount: $940,000
*Monthly Payment: $5,772
Total cash required: $100,000
*loan based on a 25 year term with a 25 year amortization at indicative fixed rate of 5%
Proprietary 8
TD Bank, SBA Division
504 Loan Summary504 Loan Summary
Loan Size Advance Rate
Terms Loan to Value
Fees Rates
1st Mortgage
No Maximum
2nd Mortgage$5MM to $5.5MM
Up to 90% of project costs
Up to 25 Years
Fully Amortized
No Balloons
Up to 90% The CDC Loan Fee is .05% of
the 1st Mortgage
Variableand
Fixed Rates
Express Loans available with 504 Loans.
*All loans subject to approval
Proprietary 9
Why use a SBA 504 Loan?
Project Costs:Building Purchase: $4,000,000Renovations: $ 450,000Closing Costs: $ 50,000
TOTAL: $4,500,000
Conventional Bank FinancingBank Loan (75%): $ 3,375,000Borrower Equity (25%): $ 1,125,000
$ 4,500,000
The 504 loan requires lower down payment, conserves working capital and stabilizes cash flow by keeping the cash in the business. Scenario above: Conventional lending requires $675,000 more to close.
How many business owners have that much cash?Of the ones who do have that cash, how many can afford to pull that much from their business and continue daily operations without significant impact? Of the declined deals you’ve seen over the years, how many do you think could have been saved with the 504? How many more deals can you close moving forward?
SBA 504 FinancingBank 1st Loan (50%): $ 2,250,000504 2nd Loan (40%): $ 1,800,000Borrower Equity: $ 450,000
$ 4,500,000
Proprietary 10
TD Bank, SBA Division
SBA DealsSBA DealsFranchise Day CareFranchise Day Care
$3,286,0007a – 22 years
Real Estate & Equipment
Franchise RestaurantFranchise Restaurant$2,221,500
7a – 14 yearsRE Purchase & Construction
Urgent CareUrgent Care$1,680,000
7a – 20 yearsRefinance
Funeral HomeFuneral Home$1,440,000
7a – 18 yearsConstruction
Food WholesalerFood Wholesaler
$3,000,0007a – 25 years
RE Purchase & Construction
Retail StoreRetail Store$1,485,000
7a – 25 yearsReal Estate Purchase
Proprietary 11
Franchise Concepts
Proprietary 12
Competitive Advantages of Competitive Advantages of TD Bank SBATD Bank SBA
Proprietary 13
TD Bank SBA Division
Contact InformationContact Information::
*All loans subject to approval
John Konevich, Vice PresidentSBA Division
Mobile: 978-989-2409
Office: [email protected]
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