COMMERCIAL REAL ESTATE AND EQUIPMENT FINANCING

TBFC 504 LOAN RATES FOR AUGUST 2016: 20 YEAR FIXED RATE 4.09% | 10-YEAR FIXED RATE 4.10%

WELCOME

TBFC FINANCING IS PROVIDED IN COMBINATION WITH BANK FINANCING
AND EQUITY INVESTED BY THE BORROWER.

A project financed by TBFC has three sources of funding:

  1. A TBFC loan for up to 40% of total project cost with TBFC holding a second mortgage position;
  2. A loan from a commercial lender of the borrower’s choosing for 50% of total project cost with the lender holding the first mortgage position;
  3. An equity investment from the small business borrower for at least 10% of the project cost.

Tidewater Business Financing Corporation loans have a term of 20 years when used to acquire real estate and a term of 10 years when used to acquire machinery and equipment. Both loans have a low competitive fixed rate for the term of the loan.

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NEWSLETTER

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ABOUT

A BUSINESS FINANCING OPTION
THAT’S TOO COMPELLING TO IGNORE…

Tidewater Business Financing Corporation (TBFC) is a non-profit corporation formed in 1983 to promote commercial and industrial growth throughout Virginia and Eastern North Carolina. We serve as a resource for small businesses in need of permanent financing to acquire fixed assets.

TBFC is certified by the U.S. Small Business Administration to provide permanent financing through the SBA 504 Loan program. We provide long term financing at competitive interest rates for the purchase of fixed assets including land, buildings, and heavy equipment.

Over the past 31 years, TBFC has loaned more than $200 million enabling 500 small businesses to expand and prosper.

RECENT LOAN FUNDINGS

  • Industrial & Commercial Ship Repair – $520,000
  • Graphics Arts Advertising Agency – $120,000
  • Commercial Contractor – $140,000
  • Prosthetic & Orthopedic Supplier – $580,000
  • Industrial Metal Tool & Die Manufacturer – $491,000
  • Dental Office – $612,000

SERVICES

Small business expansion Loans that have a Big Impact…

At Tidewater Business Financing Corporation (TBFC), we offer business owners market rate financing with a minimum down payment to aid in the purchase of an array of fixed assets.

As a non-profit, our sole mission is to assist small businesses and promote economic development.

With TBFC financing, you can:

  • Purchase land or an existing building.
  • Build a new facility or renovate an existing one.
  • Make site improvements, finance soft costs and professional fees, even buy machinery or equipment.

 

THE LOAN BREAKDOWN

A bank or other lender typically finances 50% of the project cost and takes a first lien position on the assets financed. The first trust lender provides a commercial loan at current market rates and fees for their share of the project. Tidewater Business Financing Corporation finances up to 40% of the project cost and takes a second lien position, while the small business owner provides a down payment that can be as low as 10%.

 

Example of financing on a typical $1 million project:

COST OF PROJECT

Acquisition of Land & Building
$800,000
Improvements
$160,000
Soft Costs
(i.e. appraisal, architects fees, closing costs)

$40,000
TOTAL
$1,000,000**
loan-breakdown

PROJECT FINANCING

ENTITY
LOAN AMOUNT
SECURITY
Lender
$500,000
1st Lien
TBFC
$400,000
2nd Lien
Borrower Down Payment
$100,000
 
TOTAL
$1,000,000**
 

RECENT LOAN FUNDINGS

  • Assisted Living Facility – $416,000
  • Graphics Arts Advertising Agency – $120,000
  • Commercial Contractor – $140,000
  • Prosthetic & Orthopedic Supplier – $580,000
  • Industrial Metal Tool & Die Manufacturer – $491,000
  • Dental Office – $612,000

KEY ADVANTAGES

An excellent choice that will pay dividends for years to come…

With TBFC financing, business owners can purchase commercial real estate or equipment with a down payment as low as 10%. The small business owner not only gets the tax benefits and appreciation on the real estate, but also locks in occupancy costs for the long term with financing tailored to their needs.

Low Down Payment & Enhanced Cash Flow:

With financing available for up to 90% of the project cost, TBFC loans offer an affordable down payment, enabling the entrepreneur to conserve working capital and retain liquidity to meet operating needs.

Long Term Financing at Competitive Rates:

TBFC real estate financing can be fully amortized over 20 years. Equipment financing can be fully amortized over 10 years. This enables a small business owner to pay for a facility over the long term, avoid risky loan call provisions and enjoy lower monthly payments.

Ownership Options Tailored to Meet Small Business Owner Needs:

A business owner can purchase and hold title to a building personally, in the name of the business or even set up a holding company for the real estate. This gives the small business owner the flexibility to maximize tax benefits of ownership and minimize liability in the manner best suited for the business owner and their company. Additionally, two or more small businesses can receive a TBFC loan if they combine to create a real estate holding company. For instance, this option works especially well for professionals in the medical, veterinary, legal and accounting fields.

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QUICK FACTS

Quick facts about loans with TBFC..

  • Borrower can hold title personally, in the businesses name or in a holding group of two or more companies
  • A business is eligible if the net worth is less than $15 million and after tax income is less than $5 million averaged between the last two years
  • Minimum project size is $125,000 and the TBFC loan maximum is $5,500,000.
  • Business purchasing building must occupy at least 51% of the building
  • Business constructing a new building must occupy 60% immediately following construction’s completion
  • At minimum, all 20% owners must guarantee the loan
  • Business must be for profit firm
  • Possible loan up to 100% of appraisal
  • TBFC is authorized to make loans in Virginia and Eastern North Carolina

 

 

 

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VETLOAN ADVANTAGE

Veterans have a track record of success as small business owners, surpassing other groups, according to the U.S. Census. Now, Tidewater Business Financing Corporation’s VetLoan Advantage program helps veterans get the financing they need for small business ownership and success.

The SBA 504 Loan Program provides up to 90% financing for owner-user commercial/industrial real estate. In addition to a low down payment (typically 10%), borrowers can take advantage of long-term fixed rates. Veteran-owned businesses can take advantage of VetLoan Advantage features which reduce upfront loan costs.

HOW IT WORKS

The program is designed to increase veteran access to capital for owner-occupied commercial real estate and equipment purchases.

TBFC will pay the third party lender fee (1/2%) and will reduce the processing fee by 1/2% on its portion of the loans provided by the SBA 504 program. We believe that TBFC is the only SBA 504 lender in Virginia to offer this level of discount to veterans.

This is a voluntary program that provided an opportunity for our organization to give back to our veterans and the business community.

CONTACT US

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