Category Archives: Consulting & Planning

The State of Commercial Lending: A Conversation with GRP Capital Management Team

It’s a New Year and time to think about new beginnings, new ventures and new business plans. 

We thought it would be a good time to check in with our GRP Capital Management, President Rick Patel and Managing Director Krishan Patel. Let’s find out what their take is on the economy and the state of commercial lending. Check in with us if you have follow-up questions. We would love to hear your business plans and our team of experts is ready to consult with you.

Here is our conversation:

Q: What are the best ways to deal with rising interest rates while seeking financing? 

Krishan: Although borrowers may not have direct control over interest rates, they can work in their favor by reducing the leverage of their transactions. With a potential recession on the horizon, banks will be under close scrutiny by regulators, leading them to prioritize making safer loans. As a result, lenders may be more willing to offer reduced rates to borrowers who are willing to take on more risk or offer a banking relationship. Banks are interested in offering incentives to borrowers to choose their institution. 

Q: What measures should business owners be taking during these times of higher interest rates? 

Rick: I tell all our clients to be strong managers. Focus on controlling expenses as much as possible. You may want to reach out to your lender. Keep them informed if you have any hardship with your interest rate. It might be the time to discuss modifying your rate if it’s workable.

Krishan: Clients also need to be watching carefully how rising interest rates are affecting their bottom lines. Interest rate increases can have a ripple effect throughout the supply chain, as companies may need to raise their prices in response. As an end seller or service provider, it is important to consider these changes. Adjust prices strategically to maintain your margins and remain competitive in the market. It is also essential to move levers with conviction, rather than reacting to changes haphazardly or without a clear plan.

Commercial Lending Options

Q: Are there any loans out there right now that can actually come down in rate or allow for earlier refinancing? 

Krishan: Conventional loans offer more flexibility in terms of interest rates and prepayment options, but they can be more difficult to qualify for. On the other hand, government-guaranteed loans may have less flexibility in terms of prepayment options, but they may be easier to access for some borrowers.

Rick: The borrower’s financial picture is really critical. A strong borrower has the leverage to find financing options through other sources, for example credit unions, community banks, CMBS and other avenues. Our team specializes in finding the best rates, which are often not the local lenders. 

Krishan: When clients come to us looking for financing, we talk to various potential lenders and try to work out the best structure. Ideally, we want to tick off the most boxes for our clients. 

Q: What types of loans are lenders interested in making now? 

Krishan: Florida, Texas, and other southeastern states have attracted lenders’ attention due to their strong economies. In addition, diversification in asset type may also be a key lender strategy in 2023 in order to remain competitive, spread risk and ensure a stable portfolio.

Rick: The truth is that lenders are looking at strong business models and strong borrowers. But that doesn’t mean that there isn’t money for people with a few dings on their credit report or those who have had some ups and down in business in the past. But in general, lenders are a little on the cautious side right now. 

Q: What do borrowers who are interested in SBA loans need to know? 

Rick: I know some borrowers want to avoid the SBA, but they shouldn’t! 

Krishan: Yes, we definitely have clients who found the SBA application process to be too tedious.

Rick: But the truth is that SBA financing may still be the perfect fit for meeting their leverage requirements (equity contribution). We find that our GRP Capital expertise takes the bulk of the burden of the application off the clients, which makes the SBA loan underwriting faster and easier for everybody.  

Krishan: Ultimately, borrowers should not see SBA loans as a burden. Rather it is an opportunity for borrowers to access the financing they need.

Rick: Borrowers should know that 7a loans have historically had variable rates. However, some of our lenders are now providing fixed rate options. We know that interest rates can also come down in the future. So we have to work with our clients to determine the right time to lock in a rate or whether a variable rate is in fact the best product. 

Q: What are the most important reasons to refinance even during these times? 

Rick: Numerous reasons. Moving from 7a loans to a fixed rate option is a great example. 

Krishan: Refinancing with non-predatory lenders or establishing new banking relationships can open up opportunities in the future.

Rick: Refinancing should always make your cash position better or allow for improvements on the property. 

Q: What’s happening with construction loans? 

Rick: It’s complicated!

Krishan: Although construction lending has slowed, lenders are carefully evaluating the ability of general contractors to complete projects in the face of supply chain disruptions, labor shortages, and rising costs due to inflation. 

Rick: If you are considering construction, you need really strong professionals advising you on all aspects of the project. You especially need professionals in budgeting and zoning. Not every lender is interested in construction projects. However we are able to place these loans with good evidence of future profitability.

New Issues and Products

Q: Are there any special programs for any specific loan sectors? 

Krishan: One area we’d especially like to break into is the USDA Food Supply Chain Guarantee. These loan products are newer to GRP but are designed to strengthen America’s food supply chain. They offer many benefits that other businesses sectors can’t capture. The program supports any businesses involved in aggregating, processing, manufacturing, storing, transporting, or distributing food. 

Q: Anything changing in the appraisal process? 

Rick: In the current economic climate, it is likely that appraisers will be more cautious in their underwriting process in order to mitigate risk. They will assume higher supply costs and higher payroll costs, just to name two categories.

Krishan: Appraisers are also considering the possibility of sustained current interest rates. And they are constantly watching the potential for inflation to erode earnings and affect discretionary spending. 

Rick: We try to have these conversations with our clients before and during the appraisal process. Borrowers need to be aware of these potential challenges. They have to clearly understand the value of the property being financed, without emotion or excitement about potential financing. 

As you can see, the current loan climate is changing all of the time. We at GRP Capital are in contact with our large network of lenders to stay on top of all of the ups and downs, new and old ways to structure loans and finding the best matches for our clients.

Meeting from above

SBA Launches Working Capital Loan

The Small Business Administration has just announced a brand new working capital loan program. This program will be administered as a 7a loan. Although the SBA has not announced a start date, the official launch of the loan could occur as early as third quarter 2024.

The name of the pilot program is the Working Capital Pilot Program (WCP). The goal is to provide lines of credit to small business owners. The SBA particularly wanted to create this financing option during the current extended high rate environment.

According to the SBA’s press release, “This pilot program represents a significant expansion of the SBA’s loan programs by adding a line of credit product with an innovative fee structure engineered to increase flexibility for small businesses and lenders, providing more options when structuring a line of credit to meet businesses’ specific needs.”

What we Know about the Working Capital Loan Program:

• Competitive Rates for a Line of Credit: This loan can be utilized for short-term capital injections. As a result, the loan should help increase profitability or jump start a new aspect of a business. The shorter team loans and flexible designs should be enticing to many entrepreneurs.

• Flexibility: The WCP offers greater flexibility than other SBA 7a offerings in terms of maturity date and loan terms.

• Asset Based Financing : The WCP will offer a line of credit, based upon the assets of the small business. This should enable business owners to manage cash flow and to also deal with any snags in supply chains.

• More guidelines are forthcoming: The SBA is offering one-on-one consulting to lenders to help educate their personnel first about the advantages and details of the WCP. GRP Capital expects to be able to recommend these loans after a short study period with our lending partners.

• Using Valued Lender Partners: In order to access this working capital loan, we will need to engage with experienced lenders in the SBA marketplace. These lenders are already in contact with our GRP Capital team. Together we are determining the best usage of this new financing option.

• Annual Guaranty The loan will include an upfront SBA guaranty. Borrowers can pay this guaranty annually.

Our GRP Capital team specializes in finding the right lender for each project. We save our clients time and money, as we research the best choices for their funding sources. Our experience allows our clients to find funding that is project-appropriate and will allow for sufficient cash flow. Whether you are looking to refinance or purchase or engage in construction, we would love to discuss your business plans with you. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.

Interest rate

Interest Rates and Your Loans and Investments

Interest rates are a hot topic right now. But how do they impact your current and future loans? Whether you’re a seasoned investor or business owner, understanding the mechanics of interest rates is critical. Only then can you make informed decisions.

Let’s break it down.

Cost to borrow money:

  • A loan’s interest rate determines how much it costs to borrow money. The interest rate determines the additional amount you pay on top of the principal.
  • Lower rates reduce your borrowing costs. As a result, your cash flow and profitability improve.

Value and growth of investments:

  • On the flip side, interest rates dictate the returns on investments. These include bonds, treasury bills, savings accounts and certificates of deposit (CD’s). Higher interest rates can mean better yields for investors.
  • Compounded interest rates accelerate the growth of these investments over time.
  • It is critical to compare returns against inflation. If inflation outpaces interest rates, your purchasing power diminishes.

Key Factors to Know about Interest Rates:

•Not every loan is dependent on the Fed rate or the prime rate. While many loans are influenced by Federal Reserve policies, others are pegged to different benchmarks. These include the SOFR (Secured Overnight Financing Right), swap rates or even lender-specific indices.

The prime rate is often used as a baseline for commercial lines, with an additional margin based on borrower risk. (Prime +1.5 for example).

• Fixed vs. Variable Rates

  • Fixed rate loans lock in your interest rate for a part of the life of the loan. This provides stability, but can be less advantageous if market rates drop significantly.
  • Variable rates fluctuate with market conditions and are often readjusted quarterly. While they offer savings during low-rate environments, they can become costly when rates rise.

FAQS about Interest Rates:

Q: I have a fixed rate mortgage or business loan. Should I be concerned about interest rates?

A: Not necessarily. Fixed rate loans shield you from market volatility; your payments remain constant. However, if the rates drop significantly lower than your fixed rate, it might be a good idea to explore refinancing. At GRP Capital, we can help you assess whether refinancing aligns with your long-term goals and global cash flow.

Q: Are variable rate loans risky?

A: Variable rate loans can be advantageous when interest rates are low but require careful planning for potential increases in payments during high-rate periods.

  • A $1 million loan at 4% variable interest would cost $40,000 annually in interest payments. If the rate increases to 6%, that jumps to $60,000, a significant cash flow consideration.
  • Business owners who prefer predictable expenses often opt for fixed rate loans despite potentially higher costs during lower rate climates.

Q: How do higher interest rates affect my ability to secure financing?

A Higher interest rates increase borrowing costs. They may also tighten lending criteria, as lenders assess higher risks. This makes it even more important to work with experienced professionals who can identity competitive financing options tailed to your needs.

Navigating the complexities of financing in today’s fluctuating rate environment can be challenging. But that’s where we come in.

At GRP Capital:

  • We specialize in matching client with lenders who understand their unique projects.
  • Our expertise spans acquisitions, refinancing and construction financing across various industries.
  • We prioritize solutions that balance competitive terms with sufficient cash flow for long-term success.

Whether you are looking to refinance existing debt or secure funding for growth opportunities, our GRP Capital team is here to guide you every step of the way. Let’s discuss how we can help you achieve your business goals.

Energy efficient lightbulb

No More Cap on SBA 504 Green Loans

Hot off the presses is this procedural change regarding SBA 504 green loans!

In the past, the SBA 504 green loan program had a $16,500,000 cap. The SBA has announced, that starting in April, they have removed the cap.

Why Is This New Rule Important ?

  • Lifting the cap means that more borrowers can access this funding.
  • No more cap means that Green Loan funding is now available for bigger loans, including construction, acquisition and renovation.
  • The cap removal means that each project has no cap and each borrower has no cap in terms of green loans.

FAQ’s About the SBA 504 Green Loan Program

  • The SBA 504 Green Loan program encourages business owners to be energy efficient and to utilize renewable energy.
  • To be eligible for this funding, you must be creating either more efficiency or transferring your energy consumption to renewable energy in your business.
  • Typically renewable energy must be generating 15% of your energy needs.
  • Energy efficiency must result in utilizing 10% less from non-renewable energy sources.

Matching You with an Appropriate Lender

  • Not every lender has experience with 504 loans including Green loans.
  • Our GRP Capital team already know which lenders are interested in which industries and if they have geographic preferences. We also know which lenders have good reputations and have a high percentage rate of closing loans in a reasonable time frame.
  • Because the 504 program can take a little longer to close, it’s imperative for us to match you with a lender that we both trust.

From Term Sheet to Closing: Understanding the 504 Process

  • Once you have chosen a lender, our team goes into overdrive to get you to closing with a 504 loan.
  • In order to apply for SBA 504 funding, you have to utilize a Community Development Corporation or CDC. The CDC does the initial underwriting and makes sure that the loan will be acceptable to the SBA. We will help you select a CDC.
  • You will also be matched with a senior lender.
  • Our loan processing team, led by Keren Alpert, works directly with the underwriters at the CDC and the lenders as well as other third parties, like appraisers, attorneys, title agents and insurance agents. We know the process all the way until closing.
  • We work directly on your behalf, so you can work on running your business.
Please let us know if you are interested in financing for any of your business projects. Any member of our GRP Capital team would be happy to help you.

Whether you are investing in your first commercial business or expanding your existing portfolio, our in-house experts can help you identify and close on the right loan for your financing needs.
Our primary mission is to provide the most responsive, client-oriented financial services by offering competitive commercial and real estate loan products through a chain of banking and non-banking networks.

From Idea to Closing: The GRP Capital Loan Process

You’ve heard the phrase “the loan process”. What does that even mean to you as a borrower?

We’re glad you asked. Here’s what you need to know!

First Things First: What Is Important to You?

  • Clients come to us by contacting a member of our GRP team, either one of our business associates, our management team or any of our support staff.
  • We consider our first steps like a matchmaking process. First, we need to get to know you. What are the specific goals for your business, what kind of financing are you looking for? How do you envision your business for the short-term and the long-term?

Our Loan Process includes Expert, Personalized Advice

  • Our in-house team will begin to look at your business and your plans. We will ask questions to determine potential roadblocks and evaluate the strength of you and your business as a borrower.
  • Sometimes, we will come back to you with advice to delay seeking financing. We have advised clients to wait for their businesses to show another quarter of profitability. We also have advised clients when we believe that a purchase may be overpriced.
  • If we believe that your business plan looks strong, we will then reach out to our network of lenders to sell your story to them. It’s really important that we advocate for you with the lenders, seeking to find financing that meets your needs.

Matching You with an Appropriate Lender

  • Truly, the GRP Capital “secret sauce” is having relationships with many types of lenders. This is what saves our clients the most time and aggravation.
  • We try to find several lenders so you can choose from among a variety of loans, determining what the most important aspects are (size of loan, type of loan, schedule of repayments, monthly payment, having a relationship with the lender, etc.)
  • We have inside information in many ways, as we already know which lenders are interested in which industries and if they have geographic preferences. We also know which lenders have good reputations and have a high percentage rate of closing loans in a reasonable time frame.
  • Ultimately our lenders know that GRP Capital analyzes all of our potential clients before we begin to search for matching lenders. This analysis saves time for our lenders as they trust our ability to determine the strengths and issues that all of our potential loans have.

From Term Sheet to Closing:

  • Once you have chosen a lender, our team goes into overdrive to get you to closing.
  • Our loan processing team, led by Keren Alpert, works directly with the underwriters as well as other third parties, like appraisers, attorneys, title agents and insurance agents.
  • We work directly on your behalf, so you can work on running your business.
  • Lenders prefer to receive documents that meet their standards, are correct and demonstrate the true nature of the borrowers. Our loan processing team provides that for them.
  • Our clients may take on occasional loans. But our highly experienced loan processing team has seen it all. We can help manage the bumps along the way that can happen and guide you through the steps to take.
  • We know the process all the way until closing. If necessary, we can host closings in our office or support you as you sign documents closer to your home.

What lenders say about us:

“I wish all our clients were GRP Capital clients.”

“You guys rock!”

“They are great to work with and very responsive.”


Please let us know if you are interested in financing for any of your business projects. Any member of our GRP Capital team would be happy to help you.

Whether you are investing in your first commercial business or expanding your existing portfolio, our in-house experts can help you identify and close on the right loan for your financing needs.
Our primary mission is to provide the most responsive, client-oriented financial services by offering competitive commercial and real estate loan products through a chain of banking and non-banking networks.

How and Why we Find Lending Partners

What we do here at GRP Capital is find appropriate lending partners for our clients. But what does that mean? Why does it matter? And why would lending partners even want to work with us?

We’re glad you asked. Here’s what you need to know!

What our Lending Partners Want

  • First, lenders want to make loans in the right “buckets”. Sometimes these are for certain industries, sometimes they are in a certain geographic area. And sometimes, the desirable loans are for a certain size or a specific structure.
  • Lenders prefer to receive documents that meet their standards, are correct and demonstrate the true nature of the borrowers.
  • Lenders want to find qualified borrowers, who can pay back their loans through managing and owning profitable business ventures.

How GRP Capital and Lenders Work Together

  • Probably most importantly, our lenders know that GRP Capital analyzes all of our potential clients before we begin to search for matching lenders. This analysis saves time for our lenders as they trust our ability to determine the strengths and issues that all of our potential loans have.
  • Lenders do not have time to waste. They know that GRP Capital will not bring them loans that are not in their wheelhouse.
  • Finally, lenders are desirous of a smooth path through underwriting and closing. This is where we really do some of our finest work.

How our clients benefit:

  • Because we start off looking for appropriate lenders, we can save our clients time and money as well as finding the loan that is structured for their needs. Each loan is unique. We do not have a cookie cutter approach.
  • Our clients may take on occasional loans. But our highly experienced loan processing team has seen it all. We know exactly the expected quality and content of all of the documents that our lending partners request.
  • Our loan processing team works directly with the bank, the title company, the attorneys, the insurance agents, the accountants. We work hard so our clients can run their businesses. Our clients prefer this setup, and our clients’ comfort is preeminent.

What lenders say about us:

“I wish all our clients were GRP Capital clients.”

“You guys rock!”

“They are great to work with and very responsive.”



Please let us know if you are interested in financing for any of your business projects. Any member of our GRP Capital team would be happy to help you.

Whether you are investing in your first commercial business or expanding your existing portfolio, our in-house experts can help you identify and close on the right loan for your financing needs.
Our primary mission is to provide the most responsive, client-oriented financial services by offering competitive commercial and real estate loan products through a chain of banking and non-banking networks.
Checklist with hand

Business Recovery After the Hurricane: A Checklist

Let’s talk about business recovery after a major weather even.

We still have six weeks to go in the hurricane season! But many of our clients have already experienced physical damage as well as interruption to their businesses including loss of revenue.

What are the Most Important Tasks for Business Recovery?

Communicate with Your Lender!

  • Believe it or not, if you have commercial real estate, contact your lender right away.
  • Let the lender know about any damages and how you think this might affect your business. Be honest about what the challenges could be in terms of both revenue and expenses.
  • Your lender may reduce or delay your regular mortgage payments for a short time.
  • If GRP Capital helped you find a loan, we are happy to work directly with the lender on your behalf, so you can attend to your business recovery needs.

Determine Physical Damage and Engage Insurance

  • First, determine all of the physical items that need to be repaired. It’s critical to obtain multiple quotations.
  • If your repairs are extensive, you may want to hire an attorney who specializes in real estate, insurance and contracts. Critically, this attorney will work directly with the insurance adjuster.
  • On the advice of an attorney, you may want to hire your own “public adjuster”. A public adjuster works for you and not the insurance company.
  • Find out the procedures for paying for repairs. Some insurance companies have preferred providers. They may have their own forms and secure links for invoices.
  • If you were already considering renovations, consider combining hurricane repair with renovations. Click here for more information on this business plan.

Loss of Income or Business Interruption

  • In addition to physical damage, how is your business functioning?
  • Have you suffered business interruption because your business had to close due to damage or power failures?
  • Were you unable to operate at capacity because your employees were unavailable?
  • Make a list of all of the ways your business had economic injury. If you have business interruption insurance, you can provide this list to your agent.

Apply for SBA Disaster Loans

  • The Small Business Administration sets aside money in cases of major weather events.
  • In order to apply for help following Hurricane Milton, click here. For Hurricane Helene, click here.
  • You can receive low interest loans to cover uninsured losses, whether they are physical damage or economic injury.
  • GRP Capital can assist with applying for SBA help. Please contact our team to start the process.
Please let us know if you are interested in financing for any of your business projects. Any member of our GRP Capital team would be happy to help you.

Whether you are investing in your first commercial business or expanding your existing portfolio, our in-house experts can help you identify and close on the right loan for your financing needs.
Our primary mission is to provide the most responsive, client-oriented financial services by offering competitive commercial and real estate loan products through a chain of banking and non-banking networks.
Hurricane Texas picture

Combining Storm Damage Repairs and Renovation

Are you looking at storm damage repair from Hurricane Beryl?

Hurricane Beryl is now in the history books. This storm kicked off the traditional hurricane season and caused significant damage over a large swath of the country. Now, business owners are facing water damage as well as long-term power outages. Consequently, many business owners are working on their hurricane repair plans.

Sometimes storms come with a silver lining. This could be one of those times.

If you have a property that is in need of hurricane repairs, consider upgrading or renovating your property at the same time as the repairs. You could undertake more extensive renovations, even take on deferred maintenance. Especially if you have had any previous mold that needs to be remediated, using insurance proceeds to clean up water intrusion may allow you to fix both problems.

Actually, doing additional renovations during repairs can be very cost-effective. Your demolition costs may be lower. Your timeframe may be ideal, too. Essentially, you are combining your insurance compensation with other financing. GRP Capital can help secure financing through a new loan or a refinanced or restructured existing loan.

Preparing for Your Storm Damage Repair and Renovations

  • First, determine what needs to be repaired. It’s critical to obtain multiple quotations.
  • Find out the procedures for paying for repairs. Some insurance companies have preferred providers. They may have their own forms and secure links for invoices.
  • If your repairs are extensive, you may want to hire an attorney who specializes in real estate, insurance and contracts. Critically, this attorney will work directly with the insurance adjuster.
  • Now make a list of what items you would renovate if money were no object. Choose from projects that would enhance your property or increase its value. Consider franchise renovation packages if applicable.
  • Then rank your list of projects.
  • Next, talk with trusted construction and renovation professionals. Certainly, discuss both the critical hurricane repairs and your wishlist.
  • Finally, determine how much you would save by combining projects.

Contact GRP Capital while you are gathering your data. Be sure to let us know about your repairs and your wishlist. Truthfully not all lenders show interest in every kind of loan. Fortunately, we know which lenders in our lender network are financing these combination project loans. This knowledge can save you time and money.


Please let us know if you are interested in financing for any of your business projects. Any member of our GRP Capital team would be happy to help you.

Whether you are investing in your first commercial business or expanding your existing portfolio, our in-house experts can help you identify and close on the right loan for your financing needs.
Our primary mission is to provide the most responsive, client-oriented financial services by offering competitive commercial and real estate loan products through a chain of banking and non-banking networks.

Combining Hurricane Repair and Renovation

Hurricane Ian was a big storm, causing major damage. Consequently, many business owners are working on their hurricane repair plans.

Sometimes storms come with a silver lining. This could be one of those times.

If you have a property that is in need of hurricane repairs, consider upgrading your property at the same time. You can undertake more extensive renovations, even deferred maintenance.

Actually, doing additional renovations during repairs can be very cost-effective. Your demolition costs may be lower. Your timeframe may be ideal, too. Essentially, you are combining your insurance compensation with other financing. GRP Capital can help secure financing through a new loan or a refinanced or restructured existing loan.

Preparing for Your Hurricane Repair and Renovations

  • First, determine what needs to be repaired. It’s critical to obtain multiple quotations.
  • Find out the procedures for paying for repairs. Some insurance companies have preferred providers. They may have their own forms and secure links for invoices.
  • If your repairs are extensive, you may want to hire an attorney who specializes in real estate, insurance and contracts. Critically, this attorney will work directly with the insurance adjuster.
  • Now make a list of what items you would renovate if money were no object. Choose from projects that would enhance your property or increase its value. Consider franchise renovation packages if applicable.
  • Then rank your list of projects.
  • Next, talk with trusted construction and renovation professionals. Certainly, discuss both the critical hurricane repairs and your wishlist.
  • Finally, determine how much you would save by combining projects.

Contact GRP Capital while you are gathering your data. Be sure to let us know about your repairs and your wishlist. Truthfully not all lenders show interest in every kind of loan. Fortunately, we know which lenders in our lender network are financing these combination project loans. This knowledge can save you time and money.


Please let us know if you are interested in financing for any of your business projects. Any member of our GRP Capital team would be happy to help you.

Whether you are investing in your first commercial business or expanding your existing portfolio, our in-house experts can help you identify and close on the right loan for your financing needs.
Our primary mission is to provide the most responsive, client-oriented financial services by offering competitive commercial and real estate loan products through a chain of banking and non-banking networks.

Options For a Maturing Note

If you have a maturing note, you have the following options:

  • Pay off the remainder of the loan
  • Extend the loan
  • Renew the loan
  • Secure new financing

Choosing the Best Option for your Maturing Note:

• Paying off a maturing note: If you have had a conventional or even SBA mortgage which has been paying down your debt over a long number of years, making your final payment might not be too cumbersome. Do you have a bridge loan or a construction loan? If this is the case, full payoff may not be feasible. Be aware that you will no longer have tax credits for mortgage interest, which will change your taxable income.

• Extending the Loan: This option allows you to get some extra time before making that final payment. Extension is most common when facing balloon payments. Your lender must agree to an extension; in fact, this is not automatically granted. There will likely be some additional interest charges should you choose this option.

• Loan Renewal:  Have you had a good relationship with your lender? Were your payments on time for the most part (with perhaps some pauses during COVID 19 lockdowns)? Your lender MAY be amenable to creating a new loan. This will allow you to continue to pay down debt, reducing your taxable income, while staying with a familiar lending partner. Unfortunately, there are certain industries that are coming up against lender hesitancy to renew loans, including hospitality loans.

Securing a New Loan:  If you cannot go back to your current lender, you must secure new financing. Because of higher interest rates, this is the time to seek advice and figure out the best options.

GRP Capital can be of assistance. We will examine restructuring and reach out to lenders to determine what financing options are likely to be approved. Our team will consider if you should refinance existing debt, retire part of it or even restructure it. In addition, we can help evaluate your financing and cash flow needs. You will have a better sense of what type of financing options exist and choose the best one for your business.

If you would like to discuss your maturing note or any other business issues, feel free to contact our team.  An initial business evaluation is complimentary.