4+% Long Term Financing for Wisconsin Business Owners Who Create Jobs
(This program is also available on a limited basis in qualifying areas (typically rural/semi-rural) throughout the country).
If you own a business in Wisconsin and you are planning on constructing or purchasing a commercial building that is considered “multi-use” or “multi-purpose” and your business will occupy the building AND create jobs you could qualify for below market commercial financing.
Typically, “multi-use” means a free-standing building which could be any number of different facilities. Good examples would be:
- free standing retail business
- light industrial building
- manufacturing facility
- medical or urgent care clinic
- machine shop
- dental office
- medical lab
- insurance office
Basically, a building that could easily be used by another business.
Current Interest Rates
This special program is part of the SBA 504 program. The 504 is a 2 loan structure where the first mortgage is provided by a bank or lender and the 2nd mortgage is provided by an SBA approved development company.
The first mortgage rate for this program is currently 3.715%
The second mortgage rate is currently: 4.5%
Details On The Program
This program provides a below market first mortgage with interest only payments for the first 3 years and a 30 year amortization to go along with the below market 2nd mortgage of the 504 program.
- First mortgage: 30-year loan, interest only payments for the first 3 years followed by a 27 year amortization
- Second mortgage: 20 year FIXED rate
- First mortgage: minimum $250,000, maximum $2,500,000
- Second mortgage: maximum $2,000,000
- Maximum combined financing: approx $4,500,000
- Minimum FICO score of 680
- Debt Service Coverage Ratio of 1:1 for most recent fiscal year and YTD
(Buildings like hotels, storage facilities and car washes would not be eligible, but they are still eligible for the “regular” SBA programs).
Feel free to contact me at jking(at)greencommercialcapital(dot)com for more detailed info or call 1-800-414-5285.
An EPC (eligible passive company) needs to be created for all transactions.
First mortgage rate is set for first 7 years by adding 275 basis points to the current 5 Year LIBOR swap rate. (Currently the 5 Year LIBOR swap is .965%).
There is a prepayment penalty on the first mortgage which includes a “7-year lock out” meaning you cannot pay addl principle for the first 7 years.
You can also visit our website for more information about other SBA programs: www.greencommercialcapital.com