WHY PNC FOR For SBA Loans BUSINESS Funding.pdf · 2018-03-03 · Business assets and/or Real...
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Financing Solutions for Businesses From a working capital line of credit, to financing a business expansion, commercial real estate or an equipment purchase – PNC Bank has a history of providing financing solutions for business customers. PNC offers three different SBA loan programs that meet short to long term credit needs and features low down-payments and long term financing. WHY PNC FOR For SBA Loans SM BUSINESS BANKING * SBA 504 maximum loan amount is based on the SBA portion of the loan; typically 40% of total project cost. All loans subject to credit approval and require automatic deduction from a PNC Bank Business Checking account. Origination and/or other feeds may apply. ©2012 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC BB PDF 0812-0109-111713 ◊ SBA 7(a) SBA 504 SBA Express Loan Type Maximum Loan Amount* Use of Proceeds Loan Structure Available Loan Terms Rates Borrower Down Payment Collateral Requirement Term Loan $5,000,000 for most loans; up to $5,500,000 for manufacturers (Total project size can exceed $12 million) Commercial Real Estate purchase or major renovations, Construction, Heavy Equipment Three Part Loan Structure: 1. 50% of the project cost is financed by PNC Bank (1st Mortgage) 2. 40% of the project cost is financed by the SBA* (2nd Mortgage) 3. 10% is borrower’s down-payment Up to 20 years amortized for 1st mortgage; Up to 20 years amortized for Commercial Real Estate; Up to 10 years for equipment on the 2nd mortgage Fixed or variable rates on the 1st mortgage Fixed rate for full term of the loan 2nd mortgage Typically 10% Business assets and/or Real Estate, depending on loan purpose Term Loan or Line of Credit $350,000 Business Expansion or Acquisition, Franchise, Start-up, Commercial Real Estate purchase or renovations, Working Capital and Equipment PNC Bank provides the financing backed by an SBA guarantee Up to 2 years for lines of credit Up to 10 years for other loan purposes Fixed or Variable Typically up to 20% for all loan purposes, excluding lines of credit Business assets and/or Real Estate, depending on loan purpose Term Loan $5,000,000 Business Expansion or Acquisition, Franchise, Start-up, Commercial Real Estate purchase or renovations, Refinancing existing debt, Working Capital and Equipment PNC Bank provides the financing backed by an SBA guarantee Up to 20 years for Commercial Real Estate Up to 10 - 15 years for all other loan purposes Fixed or Variable As little as 10% for Commercial Real Estate purchase; typically up to 15 - 20% for all other loan purposes Business assets and/or Real Estate, depending on loan purpose
Transcript of WHY PNC FOR For SBA Loans BUSINESS Funding.pdf · 2018-03-03 · Business assets and/or Real...
Financing Solutions for BusinessesFrom a working capital line of credit, to financing a business expansion, commercial real estate or an equipment purchase – PNC Bank has a history of providing financing solutions for business customers. PNC offers three different SBA loan programs that meet short to long term credit needs and features low down-payments and long term financing.
WHY PNC FOR
For SBA Loans
SM
B U S I N E S S B A N K I N G
* SBA 504 maximum loan amount is based on the SBA portion of the loan; typically 40% of total project cost.
All loans subject to credit approval and require automatic deduction from a PNC Bank Business Checking account. Origination and/or other feeds may apply.
©2012 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC BB PDF 0812-0109-111713◊
SBA 7(a) SBA 504 SBA Express
Loan Type
Maximum LoanAmount*
Use of Proceeds
Loan Structure
Available Loan Terms
Rates
Borrower Down Payment
Collateral Requirement
Term Loan
$5,000,000 for most loans; up to $5,500,000 for manufacturers(Total project size can exceed $12 million)
Commercial Real Estate purchase or major renovations,Construction, Heavy Equipment
Three Part Loan Structure:1. 50% of the project cost is financed by PNC Bank (1st Mortgage)2. 40% of the project cost is financed by the SBA* (2nd Mortgage)3. 10% is borrower’s down-payment
Up to 20 years amortized for 1st mortgage; Up to 20 years amortized for Commercial Real Estate; Up to 10 years for equipment on the 2nd mortgage
Fixed or variable rates on the 1st mortgageFixed rate for full term of the loan 2nd mortgage
Typically 10%
Business assets and/or Real Estate, depending on loan purpose
Term Loan or Line of Credit
$350,000
Business Expansion or Acquisition, Franchise, Start-up, Commercial Real Estate purchase or renovations, Working Capital and Equipment
PNC Bank provides the financing backed by an SBA guarantee
Up to 2 years for lines of creditUp to 10 years for other loan purposes
Fixed or Variable
Typically up to 20% for all loan purposes, excluding lines of credit
Business assets and/or Real Estate, depending on loan purpose
Term Loan
$5,000,000
Business Expansion or Acquisition,Franchise, Start-up, Commercial Real Estate purchase or renovations, Refinancing existing debt, Working Capital and Equipment
PNC Bank provides the financing backed by an SBA guarantee
Up to 20 years for Commercial Real EstateUp to 10 - 15 years for all other loan purposes
Fixed or Variable
As little as 10% for Commercial Real Estate purchase; typically up to 15 - 20% for all other loan purposes
Business assets and/or Real Estate, depending on loan purpose
Inaugural Entrepreneurship Conference Financing / Fundraising Session
November 7, 2013
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What is EFI?
• Economic Development for the State• Not-for-profit• Growth and Jobs, Jobs, Jobs• Divisions
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What is MaSBEC
• Minority and Small Business, Entrepreneurship and Capital
• We do not …• Network and collaboration• Capital Programs
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What are our Capital Programs
• Minority Business Development• Loan Support• Venture Capital• Bond Financing• SBIR/STTR Phase 0 program
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Minority Business Development
• Loan Support with BBIC’s• G6 Partnerships• Developing a Strategic Plan• Developing small and minority business
support programs
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Loan Support
• Not typically for start-ups, but …• Loan Participations• Loan Guarantees• www.eflorida.com/ssbci
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Venture Capital
• Florida Opportunity Fund– 3 programs
• Fund of Funds• Clean Energy Investment Program• Florida Venture Capital Program
– Start-up and early stage– www.floridaopportunityfund.com
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Bond Financing
• Florida Development Finance Corporation• State-wide Conduit Issuer• Why bonds• Qualifications• www.eflorida.com/FDFC
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SBIR/STTR Phase 0
• Grant• Research and Development• Phase I proposal• www.sbir.gov• www.eflorida.com/phase0
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Things to consider
• Understand where you are in the capital funding continuum.
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Things to consider
• The US economy has not “normalized”• Make connections and develop relationships• Utilize free resources to position yourself• Understand the industry / speak its language• Decrease risk profile to increase fundability• The idea is worth the total sum of its paper;
you are responsible for monetizing it.
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Questions?Bill Spivey
Vice President, Capital Programs(407) 956‐5695
David RodriguezManager, Capital Programs
(407) 956‐[email protected]
www.eflorida.com/[email protected]
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Streamlining Florida’s Investment Process
Blaire Martin [email protected]
Michael O’Donnell [email protected]
florida’s entrepreneurial ecosystem
FinancialCapital
IntellectualCapital
Advocates&
Champions
ResourceProviders/Support
New IP & Technology
Early-stage Execs & C-level Mgrs
Corporate Partners
Policy Makers, Government
Economic Development
Organizations
Universities, & Colleges
Professional Service Providers
Workforce Chambers
SBDC SCORE
Angels, VCs, Private Equity
Banks
Government grant/loan programs
Philanthropy
Incubators and Accelerators
Peer Networking groups
Volunteer Mentors
Trade Assns
Non-profit Research Institutions & Hospitals
Talent Pool
Economic Gardening
State & Local Government Foundations & Individuals Businesses
Ecosystem Funding Sources
Entrepreneurs
the problem
1.Investible companies spend too much time raising capital
2.Lack of early communication between investment groups
the problem
Participating in an angel group provides individuals Substantial Benefits
Florida has plenty of deep pockets, so why aren’t there more angel groups?
3. Lack an efficient method to start & administer successful Angel Networks
the mission
To offer a disciplined and rewarding investment approach for accredited investors while streamlining the funding
process for Florida’s entrepreneurs
FAN’s 2013 outcomes to date• Members: 45 Investors • Invested in 3 Portfolio Companies
�FAN has invested $1,036,000�Syndicates have invested an additional $320K (more closing in Q4)
• Expecting to add 1 or 2 more Portfolio Companies in Q4
Source: Startup.co Infographic
FAN’s Centralized AdministrationApplications
Pre-screening & Due Diligence Paperwork Budgets
Post Investment Monitoring & SupportAdvocate for Early-Stage & Follow-On Investment,
Entrepreneurship Education, & Mentorship
FAN ChaptersGroups of Angels + ‘Side Car’ Funds
Geography | Expertise | University Affiliation
Paid Executive DirectorVolunteer Board of Advisors
Recruit & Coordinate Members Cultivate Local Deal Flow
Organize Chapter Meetings
FAN’s team to expand statewide• Michael O’Donnell & Kapono Curry• Tim Cartwright
�Chairman of the Tamiami Angel Fund I �Former Chairman of Gulf Coast Venture Forum
• Jamie Grooms�CEO Institute for Commercialization of Public Research
• FloridaNEXT�A nonprofit organization that empowers young people, entrepreneurs and
small businesses to drive the innovation needed to enhance Florida’s economy and quality of life
how much do we invest? • Angel investments typically range from $50K to $500K
• Angel investors sometimes co-invest larger amounts with partners
� ACA Southeast Syndication Network� FAN is expanding & will grow quickly in 2014
by adding chapters
target client • FAN focuses on businesses that already have proof of
concept and revenues
• We connect companies to resources, like the UCF Venture Accelerator & the UCF Mentor Network, to prepare them to work with investors
ideal ventures• Strong Management Team
Coachable, Fully Committed, Relevant Experience & Domain Expertise, Ability to Execute, History of Goal Setting & Achieving, Realistic about Venture’s Valuation & Critical Risks
• Solves Pressing Needs Market Validation, Revenue, Strong Sales Pipeline, Adoption Rate, Customer Feedback, Realistic about Business Concept
• High Growth Potential Large Addressable Market, Credible & Cost-Effective Growth Strategy, Understand Competitive Landscape & Barriers to Entry, SCM, Realistic Vision of Market
ideal ventures• Sustainable Competitive Advantages
Unique & Compelling, Articulates Benefits & Advantages for Customers, Barriers to New Entrants
• Exceptional Return on Investment Understand Potential Exit Strategies, Potential for 10x in 5 years, Favorable Timing, Ability to make $$ & Grow, Lack Capital Structure Issues & Skeleton Problems
• Use of FundsFocused Plan to Maximize the Investment’s Impact on Efficient Growth + Mentoring, Networking, and Capital Sought should Drastically increase the Valuation
how do you start the process? • Visit http://floridaangelnexus.com/
Contact Section: Send us your company name and your main contact’s full name & email address
• We will reply with access credentials to our online application
• Private credentials give companies access to start and edit their application which is best utilized as a working document that is kept updated throughout the process
• Once a company hits submit, their application appears on the investors’ dashboard of opportunities
Questions?Blaire Martin [email protected]
