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Joel Soforenko
158 followers -
SBA Lending Specialist
SBA Lending Specialist

158 followers
About
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How To Obtain An SBA Loan: PART 1

Borrower: Who is qualified for an SBA Loan?

A person who wants to borrow from a lender who finances SBA Loans needs to have these qualifications:

1. EXPERIENCE - Requisite experience in the industry he is in or wants to participate in. Standard guidelines for this experience is a minimum of one year as an owner or manager. On a case-by-case basis, a Borrower can transfer experience in a different industry as qualification for this guideline.

2. CASH - Requisite funds as a down payment and/or “cash injection” for the purchase or project including up-front costs charged by the SBA Lender.

3. CREDIT - Requisite credit to qualify under the SBA Lender’s guidelines. There are national SBA Lenders who do not have a minimum credit score requirement. However, a Borrower will have difficulty or not be able to qualify if there are these issues on a credit report: late payments, charge offs, judgments, tax liens and the like.

4. INCOME - Requisite of personal income into the Borrower’s household. The industry standard for a borrower’s income into the household is $30,000 dollars. An SBA Lender wants to make sure the borrower has enough household income to cover the borrower’s household expenses including food. (exceptions on a case-by-case basis with a letter of explanation)

Joel Soforenko is an industry veteran having extensive experience with SBA 7(a), SBA 504 and USDA loans. He has assisted borrowers as a loan originator, processor, underwriter and Manager of the SBA Department of a major origination platform. Joel is now the CEO of Continental Finance Capital Corp and can be reached at (617) 336-3215 x 5 or joel@continental.finance.
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Recent Closing

$850,000 MORTAGE REFINANCE & WORKING CAPITAL

Transaction Overview: Joel Soforenko Works With Borrower to Refinance Her Gas Station & Convenience-Store

Gas stations and convenience stores are certainly not the preferred property types of most lenders, and certainly not most SBA lenders. At Continental Finance Capital Corp however, our SBA program has no restricted industries and no restricted property types (other than those imposed by the SBA).

This borrower needed to pay off her current mortgage and obtain fresh working capital to assist in the expansion of her business, but finding a lender to cooperate was difficult. Joel Soforenko was glad walk the Borrower through the refinance process, lower her monthly payment and provide her $60,200 of working capital to help jump start her 2017!

We were lucky again to have an excellent referral partner working with us on this transaction to help us get it to the finish line.

Continental Finance Capital Corp SBA 7(a) Loan Program


CFCC offers an aggressive SBA loan program priced at a maximum annual interest rate of 6.50%, amortized over 10 years (25 years, if the business has available real estate collateral). The program features one affordable monthly payment and often no prepayment penalty.
CFCC can consolidate a business owner’s expensive merchant cash advances or business debt, remedy stifling business issues, provide expansion or purchase funds and offer unrestricted working capital to assist with new growth and other business needs.
CFCC imposes few business-type restrictions, will consider borrower credit down to 550 (or lower), can work with past borrower bankruptcies or foreclosures, and will fund from $50,000 to $5,000,000 in all 50 states.

We only need one year of income and expenses to qualify a business and we'll even consider startups.

Contact Us

Joel Soforenko, Jd | CEO
Continental Finance Capital Corp
(O) 617-336-3215 x 5
(F) 888-498-0580
joel@continental.finance


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CLOSED LOAN - $1,410,000 @ 90% LTV HOTEL PURCHASE
& WORKING CAPITAL


Transaction Overview - Baymont Inn Purchase

When we say our SBA program is unrestricted, we really mean it's unrestricted! This borrower was under contract to purchase a hotel in Michigan and only had 10% down and no other real estate (not even his primary residence was owned).

He also needed working capital to help ramp up operations and he only had a 638 credit score. Needless to say, this borrower could not find financing anywhere, until...he found South End Capital.

We provided the borrower 90% purchase financing, we financed all the closing costs and gave him an additional $85,000 in working capital. The borrower received a 6.25% rate, amortized over 25 years and the keys to his first hotel!SBA Unrestricted Program

SECC offers an aggressive SBA loan program priced at a maximum annual interest rate of 6.25%, amortized over 10 years (25 years, if the business has available real estate collateral). The program features one affordable monthly payment and often no prepayment penalty. SECC can consolidate a business owner’s expensive merchant cash advances or business debt, remedy stifling business issues, provide expansion or purchase funds and offer unrestricted working capital to assist with new growth and other business needs. SECC imposes few business-type restrictions, will consider borrower credit down to 580 (or lower), can work with past borrower bankruptcies or foreclosures, and will fund from $250,000 to $5,000,000 in all 50 states. We only need one year of tax returns to qualify a business and we'll even consider startups.

Closing Highlights

Flagged Hotel
Michigan
90% purchase financing
Working capital provided
6.25% rate, 25 yr. term
Monthly payment
638 borrower credit score
Program Highlights
Program Parameters

Nationwide
Financing from $250K to $5MM
Low credit score minimum
Most industries considered
No collateral required
Broker rebate available

About South End Capital
South End Capital Corporation "SECC", founded in February of 2009, is a nationwide, non-conforming lender (CA Finance Lenders License # 603 L334) providing collateralized and uncollateralized loans to business owners and real estate investors directly, and in participation with third-party lenders.

Contact Us: Joel Soforenko
(888) 268-7778 x 2 (O)
(413) 478-5379 (Cell)
joel @southendcapital.com


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South End Capital News

Recent Funding

$500,000 Restaurant Refinance and Working Capital Loan
- 6.25% Rate

Transaction Overview - Family Restaurant

This borrower had worked hard to build his small family restaurant into a profitable business, but he was shut down at every turn when it came to accessing affordable capital. Most conventional and SBA lenders don't lend to the restaurant industry because they consider it high risk.

We were pleased to provide this business owner a fully amortizing 25 year mortgage at 6.25% and pay off $160,000 of short-term private business loans at interest rates of 17% plus.H We also delivered $50,000 of fresh working capital and another $53,000 for renovations.

SBA Unrestricted Program

SECC offers an aggressive SBA loan program priced at a maximum annual interest rate of 6.25%, amortized over 10 years (25 years, if the business has available real estate collateral). The program features one affordable monthly payment and often no prepayment penalty. SECC can consolidate a business owner’s expensive debt or merchant cash advances, remedy stifling business issues, provide expansion funds and offer unrestricted working capital to assist with new growth and other business needs. SECC imposes few business-type restrictions, will consider borrower credit down to 580 (or lower), can work with past borrower bankruptcies or foreclosures, and will fund from $250,000 to $5,000,000 in all 50 states.

Closing Highlights
Family Restaurant
Kentucky
High Interest Rate Loans consolidated
Working capital provided
6.25% rate, 25 yr. term
Monthly payment
$2,500 broker rebate

Nationwide
Financing from $250K to $5MM
Low credit score minimum
All industries considered
No collateral required
Broker rebate available

Joel Soforenko
South End Capital Corp.
Sr VP | Director, Business Lending
Main Line 888-268-7778 x 2
Cell Line 413-348-5604
Email joel@southendcapital.com
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Who:

1. Borrower owns and manages a banquet facility
2. Borrower has owned this business for five years
3. Borrower business income meets all loan requirements
4. Borrower has middle credit score of 635

Property Type:

1. Mixed Use – Residential & Retail
2. Three apartments on the 2nd Floor
Business on the 1st Floor
Basement is finished and used by the Business
3. FMV $2,200,000 MTG $1,600,000

What:

1. Note of current lender is now due for pay off
2. Borrower wants conventional rates and terms

Where: Memphis, TN

When: Standard SBA Loan closing time is 45 – 60 days

How:
1. Borrower has exhausted his conventional and non-conforming loan
options
2. Lenders had issues with:
a) Open floor plan of the first floor
b) Location of the property
c) Credit scores of the Borrower

Decision: Eligible for SBA Loan

Why:

1. SBA Lender has no minimum credit score requirements
2. Business had required net cash flow
3. SBA Lender underwrote the loan based on the business nature of the
property and qualifying appraisal
4. SBA Loan requirement is the business must use 51% of the building’s
square footage

Eligibility Cure:

1. Use of the basement added the necessary square footage to business
usage for the 51% square footage requirement to be met

Call or email Joel Soforenko and go over your Loan Scenario
888-268-7778 x 2 or joel@southendcapital.com
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SBA Loan Scenario – Credit Card Issue (Borrower as Co-Signor Owes Debt)

Who:

1. Borrower wants to refinance his business debt
2. Borrower went through a divorce to a trial
3. Borrower and Ex-Spouse were ordered to split the credit card debt
and were responsible for paying off their portion of the debt
4. Borrower’s Ex-Spouse did not pay off the court ordered debt
5. This debt is found on the Borrower’s Credit Report as a charge off

What:

1. Borrower cannot obtain an SBA Loan until this credit issue is dealt with.
2. Bills to be paid off total $25,000

Where: Milwaukee, WI

When: As soon as this issue is resolved, the loan can close

How:

1. Borrower went through all his options including friends, relatives,
reviewing personal and business assets
2. Borrower could not find the means to pay off the subject debt

Decision: Not Eligible for SBA Loan

Why:

1. Recent charge off which could go to judgment.
2. FICO Score was not the issue

Eligibility Cure:

1. The Lender of choice was apprised of the situation and cured the issue
by including the $25,000 as working capital
2. The Borrower was allowed to use the working capital to pay off the
charged off debt at the closing.

Call or email Joel Soforenko and go over your Loan Scenario
617-336-3215 x 5 or joel@continental.finance

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SBA Loan Scenario – Purchase Bar & Grill
Who:
1. Borrower has dreamed of owning a tavern
2. Borrower is a bank branch manager
3. Borrower has experience as a tavern chef
4. Borrower rents a residence and has $125,000 in a bank account
5. Borrower has very good credit
What:
1. Tavern went out of business
2. Tavern leased its location
3. All assets of the business are for sale and taking over the lease
4. Purchase price of assets is $400,000 dollars with an additional cost of $70,000
dollars for all other parts of the transaction. Total $470,000.
Where: Dallas, TX
When: Needs 60 day closing
How:
1. Borrower needs loan to include purchase of assets, purchase of liquor license and
renovation of the interior of the premises
2. Borrower has negotiated the purchase price of the Seller’s assets
3. Borrower will work with municipality to obtain the liquor license
4. Borrower needs to research the cost of renovation
Decision: Not Eligible for SBA Loan
Why:
1. Borrower does not have required experience as a manager or owner in the
industry.
2. Borrower does not have transferable skills any other transferable skills to
own a tavern

Eligibility Cure:
1. Borrower can find a partner with the requisite experience.
2. Partner will need to have a minimum of 5% ownership of the new company
3. However, SBA Lender, Countrywide Standards is this Partner will have to fully
guarantee the loan.

Call or email Joel Soforenko and go over your Loan Scenario
888-268-7778 x 2 or joel@southendcapital.com

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