Alliance Lending Corporation
We partner with banks and credit unions to provide fixed asset financing as described above. Typically, a bank or credit union is in a first lien position for up to 50% of the total eligible project. Our company (CDC) representing the Small Business Administration is in a second lien position for up to 40% of the total eligible project. The applicant is responsible for the remaining 10%. Our portion of the loan can go up to $5 million dollars on a regular real estate loans and the interest rate is fixed for 20 years.
Loans incorporating energy savings or green technology can potentially exceed the $5 million dollar mark. We are an economic development company, so we also have a job creation requirement. One job for every $65,000 for real estate loans on the CDC/SBA portion and one job for every $100,000 for manufacturing loans on the CDC/SBA portion.
We can assist with that calculation. There are only two loan terms: 20 years on real estate loans and 10 years on equipment loans. The equipment loans must have a useful life of 10 years or longer.
For real estate loans: Purchasing an existing building requires that the applicant occupy at least 51% of the building. For ground-up construction loans, the applicant must occupy at least 60% of the building. The remaining portions can be leased out to other tenants.
Please consult with us for rules on leasing the remaining space. Special purpose projects (a listing of special projects can be made available) require the applicant to contribute an additional 5%. Also, new business start-ups also require an additional 5%. Regular loan 50% – Bank or Credit Union 40% – CDC/SBA 10% – Applicant Special Purpose Project 50% – Bank or Credit Union 35% – CDC/SBA 15% – Applicant New Business Start-up (in business less than 2 years) 50% – Bank or Credit Union 35% – CDC/SBA 15% – Applicant Special Purpose and New Start-up Businesses 50% – Bank or Credit Union 30% – CDC/SBA 20% – Applicant Interest Rate for the CDC/SBA in February 2016 was 4.324 fixed for 20 years on real estate loans.
The interest rate for equipment loans in January 2016 was 4.288% fixed for 10 years. Sample Projects: Hotel/Motels; professional buildings; dry cleaners; car washes; laundry mats; plant nurseries; movie theaters; public storage facilities; bowling alleys; charter schools; printing equipment; truck stops; lube and tune shops; childcare facilities; restaurants; volleyball facilities; soccer facilities; manufacturing facilities… Sample Special Purpose Projects Hotel/Motels; car washes; some lube and tune facilities; golf courses; …Check with us for a complete listing of special purpose projects.
Buying or Selling a Business
- Buying or Selling a Franchise
- Purchasing an Existing Business
- Loan Providers
- Obtaining Debt Funding
- Obtaining Government Funding
- Real Estate Finance