Business loans that combine business and real estate are attractive to lenders. GRP Capital Managing Director Krishan Patel led the team that closed this southern California restaurant loan.
Why Lenders Prefer Loans that Combine Business and Real Estate:
• One Word: Collateral Loans that combine business and real estate have significant collateral, which gird the deal. Many businesses can have ups and downs, especially as the pandemic continues to evolve. Very few businesses are immune from these economic vagaries. However, real estate tends to be more stable.
• SBA Guaranty: Small Business Administration (SBA) loans are dominating certain business sectors. These include most hospitality loans. As an added incentive, SBA also shows preference for loans that combine business and real estate.
Clients Were New to SBA:
Patel remarked: Our clients came to us after listening to our remarks at the AAHOA webinar following the passage of the original SBA stimulus package. Our clients, despite being very experienced entrepreneurs, had never utilized SBA for their funding needs. They were eager, however, to secure a government guaranteed loan. In addition, they were looking to establish a new banking relationship. We knew just the lender for them, one that has found great success in closing SBA loans and was also nearby. Our clients were pleased with the results and told us “they appreciated our assistance in expediting this transaction.”
GRP Capital secured a fully amortized, 25-year permanent loan with low interest rates. The owners were able to lower their monthly mortgage. In addition, they benefited from a reduced mortgage payment for the first few months as part of the latest stimulus package.
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. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.
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