|
Loan
Purpose |
New
store financing, existing store purchase,
remodels and refinancing existing loans. |
|
Loan
Amount |
Up
to 70% financing of allowable costs on
locations after a minimum $60,000 or 30%
equity and working capital investment,
whichever is greater. Loans are limited
to a maximum $155,000 and are all subject
to credit approval. |
|
Guarantees |
Personal
guarantees of all principals or partners
of BORROWER required. |
|
Security
|
A
first security interest in all furniture,
fixtures, equipment, and franchise rights. |
|
Terms |
8
years (96 months), fully amortized. New
location financing will be eligible for
the first three months of payments to
be interest-only to assist in new store
opening cash flow. |
|
Interest
Rates |
Interest
rate will be fixed at 550 basis points
(5.50%) above the comparable U.S. Dollar
Interest Rate Swaps in effect on the date
of loan closing. Payments will be determined
based upon the amount funded and the fixed
interest rate set at loan closing. Please
call for current rate and payment quotes. |
|
Deposit/Loan
Fees |
$500.00
fee due on submission of application package.
Returned to Borrower if not credit approved
or if Borrower does not agree to changes
(if any) outlined in final loan approval.
For funded transactions, $500 fee covers
all origination costs, documentation costs,
and UCC filing/search fees. |
|
Prepayment |
Prepayment
is not allowed during the first 36 months
of the loan. After the 36th month, there
is no prepayment penalty fixed rate loans
if U.S. Dollar Interest Rate Swaps are
the same or higher than those in effect
at loan closing. For every 1% decrease
in the swap rates, 96 month transactions
will be assessed a prepayment fee of 2.4%
of the outstanding balance for prepayment
during months 37-48, 1.9% during months
49-60, 1.4% during months 61-72, 1.0%
during months 73-84, and 0.5% during months
85-96. |
|
Other
Items |
Proposed
debt service coverage ratio: minimum 1.20:1,
after debt service and owner compensation
based on full one year pro-forma P&L
for the new site. Meets all qualifications
of franchisor, including satisfactory
review by franchisor of the property lease
and site approval. Franchise Agreement
and final executed lease must be in the
name of the legal borrowing entity. Payments
are to be determined at loan closing and
are to be made via automated clearing
house ("ACH"). Proposed locations must
have population counts exceeding 45,000
within a 3-mile radius. Borrower's principals
or partners must have satisfactory personal
CBR reports, with no bankruptcies or government
liens. |