Financing the Purchase of an Independent Motel
with Seller Carryback in Oregon
Scientific Capital arranges a 1.35 million 7a loan for the refinance of the independent motel in Oregon. The project was financed at 60% Loan to value for the SBA loan and 85% combined loan to value including the seller carry 2nd loan. The complexity of this project was the new SBA rule under section IV-D2g(3) Policies Regarding Debt Refinancing stating:
“The lender may consider refinancing any seller take-back financing with an SBA-guaranteed loan if it has been in place for at least 24 months following the change of ownership and is, and has been, current for the past 24 months…”
Since this hotel was acquired mid 2009 with full seller carry back, the new SBA regulation made this property unqualified for SBA refinancing until mid 2011. Through diligent research and analysis of the language of the subsections of the regulation, Scientific Capital was able to qualify the project for the refinancing. The unfavorable terms of the original carry back made this refinance a significant benefit to the principals making months of efforts to complete this project well spent.
What Our Client Thinks of Us
You were the right consultant for this tough project. Not only you have an extensive network of lenders and vendors, but are rational and detail oriented to get a sophisticated project completed successfully. Your presentation of my business and my project to the lenders was a major factor in getting this financing happen. I will continue working with you in my future business endeavors.