ASBC 504 Velocity Bridge Loan Program

Last week, the FBDC 504 Velocity Loan Program made another small business deal happen – this time, in our Georgia market.  The borrower, a rising advertising and production company based in Atlanta, utilized the program to finance a mixed-use office building.  The project was originally approved back in March by the lending partner, but due to Covid-19 related stresses, the bank was unable to facilitate the funding on time.

‍This is where Velocity stepped in!

‍The program was able to facilitate full 90% financing that included renovations.  The original lender remained committed to the permanent financing upon the debenture funding. In this scenario, the bank maintained their client relationship all while incurring ZERO RISK from the time of the closing through the debenture funding.

We are all navigating this new lending environment together. When times call for thinking outside the box, FBDC has the tools and expertise to keep deals on track and ultimately, reach the closing table. We stand ready to provide solutions to keep the small business community moving forward!

The General Manager of the Club at Cheval (semi-private golf course located in Tampa, FL), decided he wanted to purchase the course from the owner. After exploring purchase options with his banker at First Citrus Bank, the 504 Program proved to be the best fit with its low down payment and long-term fixed rate.

His 504 Loan application was approved with FBDC and First Citrus Bank just as the COVID pandemic struck – flooding the credit market with uncertainty. Knowing both the bank and borrower may be weary about moving forward with the purchase, the FBDC Business Development Officer informed them of the FBDC 504 Velocity Bridge Loan Program, which provides gap-financing prior to the SBA loan funding.

Why was gap-financing the right decision for this loan?

- Gap-financing mitigates all credit risk as it pertains to the SBA funding.

- Our Velocity Program is not subject to state approvals or administration, creating an expedited process like no other.

This particular Velocity Loan was:

APPROVED in less than a week
‍CLOSED within three weeks (along with Third Party Loan)
FUNDED sba debenture approx. 60 days after closing

By utilizing the FBDC 504 Velocity Bridge Loan Program, the borrower was able to eliminate risk and uncertainty, experience an expedited funding process and obtain a 2.59% 25-year fixed rate. Finally, due to the CARES Act, the borrower is not required to make a payment on their SBA loan for the next six months.