Mike Fasulo's ACC & 504 Presentation

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    08-Sep-2014

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Mike Fasulo's presentation at 2014 Lender's Meeting at Arkansas State University in Jonesboro, Arkansas.

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  • Overview 5/22/2014 Company Confidential 1
  • Michael Fasulo, Vice President 467 Southwest Dr., Jonesboro, AR 72401 mfasulo@arcapital.com 888-726-9226 (office toll free) 501-519-3442 (cell)
  • Established in 1957 Private non-profit lending corporation Dedicated to economic development Fully supported by the State of Arkansas Audited by the State Banking Department and SBA. Rely heavily of our banking partners to accomplish the mission of improving the economy of the state and preserving/creating jobs. Experienced staff well trained in SBA and USDA Lending.
  • Benefits of a SBA/USDA Loan to the Bank: - Allows for loans to be considered when collateral is an issue - Allows financing for startup businesses - Longer amortizations allows for better debt service coverage - Refinancing can help stabilize a struggling business - Reduces portfolio concentrations in industry segments Benefits of a SBA/USDA Loan to the Borrower: - Allows for financing that otherwise would not be available. - Provides true amortizing debt no balloon payments. - Longer amortization lowers the monthly payment
  • (Part of the Arkansas Corporation Group)
  • SBA 504 Loan An SBA loan is a direct loan issued to your customer in a subordinated position. Although it is a SBA loan you have no direct contact with the SBA. 6BCC is responsible for underwriting the SBA loan. Your permanent and interim loan are made as conventional bank loans.
  • Six Bridges Capital Corp. Current SBA 504 Loan Debentures in 6BCCs Portfolio = $100 million # of Loans = 200 Markets served by 6BCC: All of Arkansas Fayette, Shelby & Tipton in Tennessee Desoto, Marshall, Tate & Tunica in Mississippi
  • SBA 504 Loan Eligible Project assets include the following: Real Estate Equipment Real Estate and Equipment can be combined in one SBA 20-Year Debenture; lowering the overall payment to the Applicant. An Applicant must meet SBA Eligibility guidelines but we are responsible to make the determination.
  • SBA 504 Loan Program A SBA 504 loan can be used for the following: New construction Purchase of leased property Change of ownership Refinance in conjunction with an expansion Straight refinance not allowed at this time Debenture Amounts: $150,000 to $5,500,000 Debenture $300,000 to $13,000,0000+ Project Size
  • SBA 504 Loan Existing Business Multi Purpose Building 10% - Equity Injection 40% - SBA Debenture 50% - Bank Permanent First Mortgage
  • SBA 504 Loan Existing Business Single Purpose Building 15% - Equity injection 35% - SBA Debenture 50% - Bank Permanent First Mortgage
  • SBA 504 Loan New Business Single Purpose Building 20% - Equity Injection 30% - SBA Debenture 50% - Bank Permanent First Mortgage
  • Current Debenture Rates Interest Rates: 20 Year = 5.19% 10 Year = 4.48% Note: These are established at the time of the SBA Debenture funding and once set are for the full term of the loan SBA Fees: .5% on banks 50% Permanent First Mortgage 2.16% on the SBAs Net Debenture (Fees reduced by .5% for Veterans) Note: All fees can be added to the project and repaid over the amortization period
  • Benefits of a 504 Loan to the Bank: - Improves Collateral Position - Loan to Value of 50% - Provides ability to lend on equipment and have the added protection of real estate collateral. - SBA Debenture provides a long term fixed interest rate, making the payment requirements more predictable. - Longer amortizations allows for better debt service coverage - Reduces portfolio concentrations in industry segments Benefits of a 504 Loan to the Borrower: -Allows for down payments as low as 10%. -Preserves capital that can be used in the business. -Provides long term fixed interest rates. -Provides true amortizing debt.
  • Learn more about our Loan Products at: www.arcapital.com Thank you!