Call: 1-877-850-5130Program Guidelines
| Maximum Loan Amount | $25,000,000 – 1st Mortgage / Trust Deed Loan Amount | ||||||
| Minimum Debt Service Coverage Ratio |
Multi-Purpose – 1.10x
Hospitality – 1.20x Special Purpose – 1.25x |
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| Minimum Global Debt Service Coverage Ratio | 1.25x+ | ||||||
| Post-Closing Liquidity | 5% of total loan amount (1st + 2nd mortgage amount) | ||||||
| Full Recourse | Yes (with Personal Guarantees) | ||||||
| Minimum FICO Score | 650 | ||||||
| Ownership Experience | Two years minimum ownership experience demonstrating successful (profitable) operation of same business. | ||||||
| Maximum LTV For 1st Trust Deed |
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| Maximum Advance Rate | 70% – 85% of cost | ||||||
| Contingency | 10% contingency and interest reserve must be accounted for in the project cost. | ||||||
| Post-Closing Liquidity | 5-10% of total loan amount (1st+ 2nd mortgage amount), available upon completion of construction. | ||||||
| Third Party Cost Review | Borrower must agree to third-party cost review, contractor evaluation report, and third-party fund monitoring during construction. All related costs may be included in project cost. | ||||||
| Performance Bond | Borrower may be asked to provide performance bond from their contractor. Subject to third-party review of contractor. | ||||||
| SBA Eligibility | The borrower must be eligible under the SBA 504 or SBA 504 Green Loan initiative programs. | ||||||
| Maximum LTV For 1st Trust Deed |
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| Cash Collateral(May Be Required) | Additional cash collateral equivalent to 5% to 10% of the total project cost may be required during the construction phase if the Borrower and Guarantors do not meet the Global Debt Service Coverage Ratio requirements (0.50x-1.00x from surplus cashflow). Cash Collateral will generally be released upon completion of construction and issuance of the SBA 504 debenture. | ||||||
| Additional Hospitality Requirements | Midscale or upper midscale limited-service or select-service franchises only. Property must be located in an economically diverse community with a population >50,000. |
| Maximum Advance Rate | 75% of cost or 70% of stabilized value. For SBA eligible projects, up to 80% of eligible project costs. | ||||||
| Loan Size | $1,000,000 to $15,000,000 | ||||||
| Loan Term | 6 months to 36 months – Interest Only | ||||||
| Collateral | 1st Mortgage or Deed of Trust on land and improvements held fee simple interest | ||||||
| Stabilized NOI |
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| Recourse | Partial or Full Recourse | ||||||
| Ownership Experience | Minimum 3 years of comparable ownership and management experience demonstrating successful (profitable) operations. | ||||||
| Preferred Property Characteristics for Hotel Loans |
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Forms & Pricing Sheets
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AVANA Capital Credit Check Authorization Form
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AVANA Capital Management Résumé
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AVANA Capital Loan Application Form
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AVANA Capital Business Debt Schedule
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Statement of Personal History – SBA Form 912
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Personal Financial Statement – SBA Form 413
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Request for Transcript of Tax Return – Form 4506-T
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SBA 504 2nd Interim 2nd Trust Deed Pricing
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Construction to SBA 504 Program
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Construction to Mini-Perm Program
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Broker / Non-Bank Lender Application Form
The following documents are required to prescreen the transaction and issue a discussion term sheet within 3 business days.
| Business/Property | All federal copies of income tax returns for subject business over the past three years, including affiliate entities in which principals hold 20% or more ownership. For affiliate entities in which principals hold less than 20%, K1 statements are needed for the previous three years. |
| Personal | All federal copies of tax returns over the past three years for all parties with 20% or more ownership interest in subject business. |
| Financial Statement | Current year to date financial statement for all entities and personal financial statement of all guarantors. Personal financial statement form available here. |
| Debt Schedule | Schedule of all debts for subject business. Template available here. |
| Resumes | Management resumes of all principals, Guarantors, and GM. Template available here. |
Rates
WSJ Prime
5.25%
1 Month LIBOR
2.42%
5 Year Swap
2.80%
20-Year SBA 504 Rate*
4.92%
Rates shown are updated every Tuesday of each week. On weeks where Monday is a holiday,
rates will be updated on Wednesday. Last updated: December 11, 2018
*As quoted by CDC Small Business Finance.