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    Small Business

    OVERVIEW
    • Ready Capital, through its subsidiary ReadyCap Lending, LLC, is an approved non-bank, U.S. Small Business Administration (SBA) Preferred Lender
    • Offers secured and unsecured financing nationwide to small business owners
    • Provide loans from $350,000 to $5 million
    • Flexible terms and competitive loan rates to fund a range of business needs
    • Longer terms, lower down payments and more flexibility than other types of business financing, to improve cash flow as you expand or start your business
    • Closing costs may be financed
    • Equity injection may include seller note or gift funds
    • Working capital may be included
    • Story driven underwriting
    • Low down payment
    • Longer terms
    • More flexibility
    • Fixed rate available for those who qualify
    Related links:
    Q&A with John Moshier - President of SBA Lending

     

    1. How has the Economic Aid Act enhanced the 7(a) program?


    The Economic Aid Act passed by Congress in December 2020 included economic aid for small businesses which were hit particularly hard by the pandemic. For 7(a) borrowers and lenders, the most significant change was a temporary enhancement to the terms of the program. Congress not only increased the loan guarantee to 90%(instead of 75%)but also cut the guarantee fees required of borrowers in the program. Also, the Act extends the small business debt relief program, so some borrowers have become eligible for deferred payments of principal and interest.

     

    2. Why does the fee waiver matter to borrowers?


    The fee waiver can save a significant amount of money for a borrower. Normally, under the 7(a) program, a borrower has to pay a guarantee fee of as much as 3.5%. Over the life of a loan, that can become a significant added expense. For example, imagine a borrower with a $1 million loan. Under the normal 7(a) rules, that borrower would have to pay a fee that would accrue to about $50,000 when compounded. But for the moment, that fee is waived until the appropriation runs out. We think the fee waiver creates a big opportunity for borrowers, but it is tied to the temporary enhancement which is likely to wind down soon.

     

    3. What about the deferred payments?


    Some borrowers may qualify for up to three months of deferred payments under the temporary enhancement. The attractiveness of this opportunity speaks for itself as any borrower will benefit by omitting the first few months of payments. In many cases, the deferral can even qualify for forgiveness, so the borrower is effectively reducing their total loan balance.

     

    4. Does this broaden the client base for 7(a) loans?


    For lenders, this temporary change enhances the lending appetite because the higher guarantee—90% instead of 75%—helps reduce their risk. While the 7(a) program obligates SBA lenders to comply with the SOP guidance for an eligible borrower, lenders typically make choices about which industries and regions fit their credit profile. There might be a borrower whose credit profile under normal circumstances would fail to match with the lender’s ideal profile, but in this temporary situation, the same lender may alter their ideal profile in an effort to help fund more businesses. As a result, some higher-risk borrowers may now have a better opportunity to qualify for a 7(a) loan than they will if they wait until after the temporary enhancement period ends.

     

    5. When will the temporary enhancement end?


    This temporary enhancement was rolled out when Congress authorized the appropriation associated with the Economic Aid Act. SBA lenders cannot forecast whether Congress will authorize a new appropriation, but it is prudent to assume that this enhancement is unlikely to be renewed. The end of the period is determined not by the calendar but by the budget—when the appropriation runs out, the temporary enhancement ends. An educated guess would point to June or July of 2021 as a likely end date for the enhancement. For that reason, borrowers should consider applying for a 7(a) loan now.

     

    “Ready Capital” is a trade name encompassing ReadyCap Lending, LLC, ReadyCap Commercial, LLC, and other businesses operated by Ready Capital Corporation. This document is provided for information and discussion only and does not constitute an offer or commitment to extend credit. Any information including facts, opinions or quotations, may be condensed or summarized and are expressed as of the date of writing. The information may change, and Ready Capital Corporation and its affiliates/subsidiaries are under no obligation to ensure that such updates are brought to your attention. Ready Capital is not affiliated with or endorsed by any government agency, department, or bureau. All the opinions, conclusions, or recommendations expressed are those of Ready Capital and do not reflect the views of any government agency, department, or bureau.
    © 2021 Ready Capital Corporation. All rights reserved

    INDUSTRIES

    Ready Capital is a national direct lender that specializes in providing financing solutions to a wide range of industries. Our team of specialists understands the value of your business as well as the people who operate the practice and the communities that they serve.

    Loan Programs:

    • Owner Occupied Real Estate
    • Business and Partner Buyouts
    • Real Estate Loans
    • Renovations & Expansions
    • Working Capital
    • Practice Acquisitions
    • Debt Consolidation
    • Construction
    • Equipment

    Loan Terms:

    • Creative Financing Structures
    • Up to 25 Year Loans
    • Competitive Interest Rates
    • Flexible Payment Structures
    medical

    MEDICAL

    dental

    DENTAL

    logistics

    LOGISTICS

    self-storage

    SELF
    STORAGE

    funeral-homes

    FUNERAL
    HOMES

    insurance-agencies

    INSURANCE
    AGENCIES

    legal-accounting

    LEGAL
    ACCOUNTING

    warehouse

    WAREHOUSE

    assisted-living

    ASSISTED
    LIVING

    hospitality

    HOSPITALITY

    childcare

    CHILDCARE

    liquor-stores

    LIQUOR
    STORES

    pharmacy

    PHARMACY

    veterinary

    VETERINARY

    convenience-store-gas-station

    CONVENIENCE
    STORE /GAS STATION

    Patrick J. McEvoy
    Orlando, FL

    Patrick joins Ready Capital with more than 20 years in direct SBA lending experience, having worked for several large banking institutions, including Bank of America, Bank of the West, and Centennial Bank, managing 7a and 504 SBA products. Also, Patrick has started and managed SBA groups for two smaller community banks within Florida. Recently, Patrick served as a national lender for a top non-bank lender focusing on  Special Purpose Real Estate, Business Acquisition/ Partner Buyouts, and Debt Refinance loan structuring’s. Prior to his SBA career, he managed a company in Washington DC serving investment bankers, securities attorneys, and M&A specialists involving complex, public company transactions.  He has served on several boards, including the Florida Assisted Living Association and currently serves voluntarily as the loan committee chairman for a non-profit minority-based lender. Patrick received his B.A. in Financial Management from The Catholic University, as well as his Masters of Business Administration (M.B.A.) from The American University in Real Estate and Urban Development.

    Specialties:
    • Small Business
    Back
    RECENT TRANSACTIONS
    Fitness and Recreational Sports Centers
    Take- Out Construction
    $1,450,000
    10 Year Term
    Fort Collins, CO
    Full-Service Restaurants
    Real Estate Purchase
    $2,375,000
    25 Year Term
    Santa Ana, CA
    Insurance Agency
    462500
    $462,500
    25 Year Term
    Auburn, CA
    Dentists' Office
    Real Estate Purchase
    $1,405,000
    25 Year Term
    Riverside, CA
    Liquor Store

    $403,500
    25 Year Term
    Fraser, MI
    Gasoline Stations with Convenience Stores

    $1,694,000
    25 Year Term
    Auburn, WA
    APPLY FOR A LOAN

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    Military Makeover

    Ready Capital is a proud partner with the Military Makeover Series. Every quarter we will be sponsoring a veteran in the makeover of their homes. We proudly support Veterans and those who own small businesses by offering incentives for Veteran-owned businesses.

    CAREERS

    Interested in working with one of the fastest growing commercial mortgage REIT’s in the industry?

    Ready Capital is always looking to add experienced and driven professionals to expand and grow with our company. We are continually searching for experienced professionals within the industry by offering a work environment thriving on collaboration and a corporate culture of employees who are passionate and excited about what they do.

    Find out what job positions are open in your area.

    View Open Positions