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  • Participation Lending SBA 504 Bridge Financing

    Terms

    • Fixed Assets – up to 10 years.
    • Real Estate – up to 20 years.
    • Construction period – up to 18 months. Extensions will be considered on a case by case basis.

    Fees

    • Nonrefundable $250 Application Fee (Credit Toward Origination Fee at Closing if Approved)
    • WHEDA Origination Fee is 1% of WHEDA participation amount. One half due upon loan approval and one half due at closing
    • Borrower to pay all loan closing fees

    Rate

    WHEDA’s rate matches the Lender’s rate when sharing the same collateral position, or the rate will be risk based if WHEDA is assuming a subordinated collateral position. The Lender may retain a servicing fee up to 25 basis points from the rate paid to WHEDA.

    Loan Size

    Maximum WHEDA participation is $2 million.

    Participation Requirement

    A minimum of 50% of the total project lending to be made by a Participating Lender(s).

    Collateral

    Typically pro-rata shared lien but subordinate lien positions may be considered on a case by case basis and is subject to risk based pricing.

    Loan to Value

    Maximum 90% LTV on a project basis.

    Debt Coverage Ratio

    1.10, minimum

    Collateral Coverage

    110% of market value, 80% of liquidation value, minimum.

    Loan Guarantees

    Personal guarantees will be requested.