Lending Partners

Banks

Banks are a primary source of commercial lending, providing businesses with a range of financing options to support their growth and operational needs. As commercial lending institutions, banks offer various types of loans, including term loans, lines of credit, commercial real estate loans, equipment financing, and SBA loans. Banks are known for their stability, extensive resources, and ability to offer competitive interest rates and terms. They typically require thorough documentation and a solid credit history from borrowers. Additionally, banks often provide comprehensive financial services, including treasury management, merchant services, and investment products, making them a one-stop-shop for business banking needs. While the approval process can be more rigorous and time-consuming compared to alternative lenders, businesses benefit from the reliability and structured support that banks offer.

Credit Unions

Credit unions are member-owned financial cooperatives that offer commercial lending services to businesses. As commercial lending institutions, credit unions provide various loan products, including term loans, lines of credit, commercial real estate loans, and equipment financing. They often offer competitive interest rates and favorable terms, as their not-for-profit status allows them to focus on serving their members rather than maximizing profits. Credit unions are known for their personalized customer service and community-focused approach, often working closely with business owners to understand their specific needs. While they may have more limited resources compared to large banks, credit unions typically provide a more flexible and accessible lending process. Membership requirements and a focus on local or regional businesses are common characteristics of credit unions, making them an attractive option for small to mid-sized businesses seeking supportive and community-oriented financial partnerships.

Insurance Companies

Insurance companies, besides offering insurance products, also provide commercial lending services, particularly for large-scale projects and long-term financing needs. These institutions typically offer loans for commercial real estate, infrastructure projects, and substantial capital expenditures. Insurance companies can provide attractive terms, such as lower interest rates and extended loan durations, due to their large pools of capital and long-term investment strategies. They are well-suited for stable, low-risk borrowers seeking substantial financing amounts. Commercial loans from insurance companies often involve a thorough underwriting process, focusing on the borrower’s financial health, project feasibility, and collateral value. While the application and approval process may be rigorous and time-consuming, borrowers benefit from the stability and reliability of insurance companies as lenders. This type of financing is particularly advantageous for businesses seeking long-term, stable financing for significant projects or assets.

CMBS

Commercial Mortgage-Backed Securities (CMBS) are a type of financial product that pools together commercial real estate loans and then sells them as securities to investors. CMBS lending is facilitated by investment banks and financial institutions that originate the loans, pool them into a trust, and issue bonds to investors. CMBS loans are typically backed by a diverse range of commercial properties, such as office buildings, retail centers, hotels, and multifamily properties. The loans are bundled and divided into tranches, each with different levels of risk and return, allowing investors to choose according to their risk tolerance. Borrowers benefit from non-recourse loans, meaning the lender can only claim the property used as collateral in case of default, not other assets of the borrower. These loans typically offer longer terms, ranging from 5 to 10 years, with amortization periods up to 30 years.

Agency / SBA

Agencies such as Fannie Mae, Freddie Mac, and the Small Business Administration (SBA) play a significant role in commercial lending, particularly for multifamily housing and small business financing. These agencies do not lend directly but work through approved lenders to provide loans that are often backed by government guarantees. Fannie Mae and Freddie Mac: Primarily focus on multifamily housing, offering competitive rates and terms to support affordable housing and large residential projects. SBA: Provides a variety of loan programs aimed at supporting small businesses, including SBA 7(a) loans for general business purposes and SBA 504 loans for real estate and equipment. These agencies have standardized underwriting guidelines that must be followed by their approved lenders, ensuring a consistent and transparent lending process. purchases. Due to the government backing, loans through these agencies often come with lower interest rates and favorable terms compared to conventional commercial loans.

HUD

The U.S. Department of Housing and Urban Development (HUD) provides various loan programs designed to support the development, rehabilitation, and refinancing of multifamily housing and healthcare facilities. HUD's lending programs are aimed at increasing the availability of affordable housing and improving living conditions, with a strong focus on community development. HUD 221(d)(4) Loan Program: Provides financing for the new construction or substantial rehabilitation of multifamily rental properties. HUD 223(f) Loan Program: Offers refinancing or acquisition of existing multifamily rental housing. HUD 232 Loan Program: Designed for the financing of residential care facilities such as nursing homes, assisted living facilities, and board and care homes. Due to government insurance, HUD loans often come with lower interest rates compared to conventional loans. The application and approval process can be extensive and time-consuming, often requiring detailed documentation and compliance with strict guidelines.

Debt Funds

Debt funds are investment pools that provide capital to businesses and real estate projects through debt financing. These funds are managed by investment firms or private equity groups and are an alternative to traditional bank loans. They can offer a range of loan products, including senior debt, mezzanine debt, and bridge loans. Debt funds can offer more flexible terms and structures compared to traditional lenders, tailoring solutions to meet the specific needs of the borrower. Typically, debt funds can provide financing more quickly than traditional banks, which is crucial for time-sensitive projects or acquisitions. Willing to lend to higher-risk projects or borrowers that might not qualify for conventional bank financing, including distressed assets or new developments. Provide various types of debt financing, including senior loans, mezzanine financing, and bridge loans, catering to different stages and types of commercial projects. Typically charge higher interest rates than traditional bank loans due to the increased risk and flexibility they offer.

REITs

Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-producing real estate across a range of property sectors. As commercial lending institutions, some REITs focus on providing debt financing for commercial properties. These are known as Mortgage REITs (mREITs), which primarily earn income through the interest on their loan investments. Funded by capital from investors seeking regular income and diversification in their portfolios, which mREITs achieve through the interest payments from their loan portfolios.Can finance a wide array of commercial properties, including office buildings, shopping centers, industrial properties, and multifamily housing.