It’s no secret that SBA loans can serve as an incredibly attractive financing option for small businesses that are trying to grow. While these types of loans can carry lower interest rates and offer longer terms for repayment than most other business loans, it’s important to remember that not everyone is eligible for this type of financing.
In fact, qualifying for SBA loans can be down right difficult even if your client’s business has a proven track record of strong revenue and has a solid business plan in place.
If your client is among those who don’t qualify for an SBA loan, or if you are interested in learning more about the alternatives to SBA loans, you’re in luck. Today, there are a number of alternative lenders that are choosing to break away from the traditional lending models, and are instead offering a more holistic and hybrid approach to small business financing. Here are some alternatives to traditional funding that you should know about:
Low Rate Program
If your small balance commercial clients need more flexibility than what is offered by traditional banks, a low rate program could be just what they are looking for. In fact, this type of program can help them lock in the best SBA alternative solutions for their particular needs.
With rates as low as 6.375%, fast closings offered, loan amounts up to $2 million, and cash outs available, our low rate program can be a fantastic solution for your clients.
Lite Doc Programs
If required documentation is preventing your clients from securing the commercial loan they need for funding, our Lite Doc Programs or Reduced Documentation Solutions can be the perfect solution. For borrowers with sufficient credit, these programs offer no tax returns or 4506T required, as well as cash outs and no seasoning requirements.
Lite doc programs can make it much easier for investors and business owners to secure the commercial financing they need — in turn, making it easier for you to close more non-bankable deals in your area.
1-4 Plex Program
If you’re trying to close more multifamily deals, you’ll want to get to know our 1-4 Plex Program, offering fast closings and competitive pricing for 1-4 unit investor deals. As you know, investors of a duplex, triplex, or other 1-4 unit properties face unique challenges when it comes to securing mortgage financing.
Additional benefits of this program include no required tax returns or 4506T, no DTI calculation, and no limit on the number of properties financed.
Non-Recourse Program
We also offer commercial lending solutions for non-recourse loan requests, through our non-recourse program offering interim and permanent commercial real estate financing. This particular program features short and long term options, with loans ranging from $1 million to $5 million and nationwide lending.
Bridge financing through this program is best for commercial properties that have some existing cash flow and that require light rehab or re-tenanting before permanent financing is realistic or attainable.
Permanent financing is another option, best for stabilized commercial properties that have in-place cash flow but are still near misses for banks or other traditional lenders.