Bay Area Capital Commercial


Bay Area Capital Commercial provides a wide assortment of comprehensive financing programs. Our primary goal is to be your source for the financing of commercial loans. We provide creative solutions for commercial real estate investors across the nation. If you need to refinance an existing property or you need purchase money - we can help structure the terms that most suitably meet your needs.

The Small Business Association's l504 ending program is designed to help small businesses obtain financing which typically would not be available to them through conventional banks and lenders. These SBA loans typically have longer terms, reasonable rates and are somewhat unique in that they can assist with financing for equipment and even working capital. However, the SBA does not provide financing for companies if they cannot demonstrate reasonable experience, decent cash reserves, and document their ability to repay the debt.

The average Bay Area Capital SBA loan is in the $500,000 to $2,000,000 range and can be structured in numerous ways. The SBA guarantees loans made by banks and other lenders. Most SBA loans have an SBA component and a bank component. SBA loans are typically used for long-term business financing. The term of loan is often based upon the ability of the business to repay the loan, and the remaining useful life of the asset being financed.

The SBA does not set the interest rate for the bank's loans. The rate of interest is determined by the lending institution and based on market factors. It is sometimes an adjustable rate mortgage tied to the Prime Rate, or it can be fixed for a period of years. The maximum permitted rate allowed by the SBA is Prime + 2.75%. SBA Loans require a personal guarantee from all owners, officers, and directors that own 20% or more of the business. SBA loans include a prepayment penalty in most cases. The prepayment penalty is usually as follows:

Year 1: 5%
Year 2: 3%
Year 3: 1%

General guidelines:

Real Estate 25 year amortization
Working Capital 7-10 years
Equipment up to 15 years, depending on remaining useful life

Loan Purposes:

Commercial Real Estate required as primary collateral
These loans may assist with:

Inventory and Materials
Furniture, Fixtures, Machinery and Equipment
Leasehold improvements
Business equipment
Working Capital
Refinance of Debt that substantially improves the business cash flow

Non Permitted Uses

Cash out refinancing (other than working capital
Repayment of income tax or sales tax liabilities

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