TYPICAL REQUIREMENTS

Down payment:

•	20% for business acquisition
•	10% for real estate (typically portion of down payment may be seller carry)

Term:

•	10 years business acquisition
•	25 years real estate
•	Combination uses a weighted average

Collateral:

•	First security interest in assets being purchased
•	Does not need to be fully collateralized, however, any available assets of borrower must be taken up to full collateralization.

Management:

•	Direct management in similar industry or transferable management skills

Rate:

•	Prime + 2.75% maximum

Cash Flow:

•	Typically need 2-year average with consistent interim statements

Credit

•	Anything we need to know?

Personal Guarantees

•	Of all 20% or more owners

Life Insurance / Landlord Subordination

•	Usually

POSSIBLE DELAYS

•	Life insurance
•	Non U.S. Citizen
•	Presently under indictment, on parole or probation
•	Charged with and/or arrested or convicted of any criminal offense other than minor motor vehicle violation
•	Over the next several months verifying 2000 tax returns if relying on those numbers

RECENT CHANGES

•	Guarantee increased from $750,000 to $1,000,000
•	Prepayment penalties 5%, 3% and 1%. Apply only to voluntary prepayments of 25% or more on loans with maturities of 15 years or longer.
•	Fees:

2.0% on guaranteed portion up to $150,000
3.0% on guaranteed portion for $150,000 to $700,000
3.5% on guaranteed portion for $700,000 to $1,000,000

•	Gross loan amount capped at $2,000,000
•	Obtain an appraisal if the business has been transferred in past 36 months
•	Document valuation of business
•	Verify tax returns from the business

Please feel free to call us if you have any questions on this information.
We're happy to assist you.