Phone: 877 850 5130
Address: 17505 N. 79th Avenue, Suite 105 Glendale, Arizona 85308
Email: avanateam@avanacapital.com
Website: http://www.avanacapital.com/
States They Lend In: Nationwide
SBA 504 Loan Structure
Low Down Payments: Qualified companies may be able to secure funding with as little as 10% down, so you can keep growing your business with cash left on hand. (Startups and single-purpose facilities may need a larger down payment to qualify.)
Below Market Fixed Rates: The SBA 504 loan offers rates that are set for the duration of the loan, without balloons later. The rates are also set lower than standard market rates and are amortized over 20 to 25 years, so borrowing for development is easy to budget.
No Additional Collateral: While some loans require that you pledge personal assets, such as your home or vehicle, the SBA 504 loan is secured by your purchase.
Can Include Closing Costs and Fees: As with most loans, there are closing costs and other “soft fees,” such as insurance and appraisals, that are necessary in order to process the loan and receive funding, but they can be rolled into the loan, so you can keep more cash on hand for daily needs..
If your commercial property is at least 51% owner-occupied, small-business loans from AVANA Capital can help you acquire, renovate, or build commercial real estate properties. SBA 504 loans may also be used to purchase heavy equipment that is necessary to keep your operation running or to boost productivity. Typically, you’ll only need 10% – 20% of the total cost of your project as a down payment. Additional funding to cover the remaining balance is typically broken into two lien loans. The first lien loan covers 50% of the total cost, while the second lien loan, which is secured by the SBA, will cover the rest. The team at AVANA can deliver your pre-approval within 24 hours, with closing in as little as 45-60 days. We offer very competitive rates, and your loan can be paid off over a period of 20 or 30 years, making it easy to grow your company and maintain more working capital.
Eligible Property Types
- Hospitality
- Skilled Nursing
- Assisted Living
- Retail
- Medical Offices
- Franchised Restaurants
- Warehouse / Industrial
- Self-Storage Facilities
Transaction Categories
- Acquisition Financing.
- Opportunistic or Auction Purchases.
- Partner Buyouts and Repositioning
- 1031 Exchange Purchases
- Expansion and Renovation
- Refinance and Protective Advances
Construction Loans Structure
Two Years Interest-Only: Construction loans through AVANA Capital are uniquely structured, so that the borrower only pays interest for the first two years. This gives ample time for the project to be completed before monthly principal payments are added.
Low Down Payment: While conventional construction loans need as much as 35% down, our requirements are between 10% and 20% depending on the property type under the Construction to SBA 504 Program.
Can Include Closing Costs and Fees: Various construction costs, as well as closing and soft fees, such as architectural assessments, title insurance, and surveys, can be rolled into the loan, enabling you to keep more cash on hand during the construction process.
Our construction loans are generally short-term loans under the SBA 504 program, where the initial two years are interest only. After the first two years, the principal is converted to a principal and interest payment over a 20-year to 25-year amortization period. All construction loans are based on a floating interest rate both during construction and after construction, so owners typically refinance and obtain more favorable financing at a lower fixed interest rate amortized over a 25-year period. Our loans will require a 10% contingency dollars calculated on total hard costs and 5% contingency dollars calculated on total soft costs in the project. We also require an interest reserve calculated over the construction loan period which is included as part of the total project cost. Most of the loans that are approved provide a secondary form of repayment that is unencumbered ,and in some cases, we may require additional cash collateral during the stabilization period. All of our construction loans require SBA authorization prior to closing and must meet the minimum equity requirements. Conventional construction loans may require up to 35% of the total project costs as the equity contribution.
Transaction Categories
- Franchised Territory Expansion
- Brand Conversions
- Property Expansion and Renovation
Eligible Property Types
- Hospitality
- Skilled Nursing
- Assisted Living
- Retail
- Medical Offices
- Franchised
- Restaurants
- Warehouse / Industrial
- Self-Storage Facilities
Bridge Loans Structure
Low Monthly Payments: With bridge loans from AVANA, borrowers pay only on the interest of the loan for 12 months – 36 months. This leaves more cash on hand to handle other expenses and enables you to generate profit with your purchase before principal payment is due.
Competitive Rates: We offer very competitive rates, so it’s easier to borrow the money your company needs to grow.
Fast Closing: While other lending options take 45-60 days to close, AVANA can close bridge loans in as little as 10 days or an average of 30 days from application. You may be pre-approved for funding in as little as three days.
If you need to act quickly to take advantage of a discounted purchase option, refinance, or purchase a note, a bridge loan from AVANA Capital can help. Our bridge loan program is the best immediate solution for refinancing or a quick close for a purchase where we can fund up to 75% of the as-is value for a period of 12 to 36 months. During this time, you’ll make payments on the interest only and can redevelop or reposition your purchase so that it generates revenue. At the end of the term, the principal payment will be due in full. Unlike other forms of financing that can take up to three months to close, AVANA’s bridge loans typically close in just 10 to 30 days. Our pre-approval process can be completed in as little as three business days, so you’ll be able to make swift yet knowledgeable decisions and act quickly.
Transaction Categories
- Acquisition Financing.
- Opportunistic or Auction Purchases.
- Minor Construction and Repositioning.
- CAPEX and FF&E financing.
- Discounted Payoff Financing.
- Debt consolidation and Recapitalization.
Eligible Property Types
- Hospitality
- Skilled Nursing
- Assisted Living
- Retail
- Medical Offices
- Franchised Restaurants
- Warehouse / Industrial
- Self-Storage Facilities
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