• Why You Should Care ○ Lower Risk: The bank holds the first mortgage, typically at a maximum 50% LTV, the SBA/CDC covers up to 40%, and the borrower only brings 10% to the table. On refinance projects, the borrower taps into existing property equity. ○ Portfolio Retention: Keep your best customers in-house by offering competitive structures. ○ Bigger Deals Made Possible: The combined financing structure can make multi-million-dollar projects feasible for clients you might otherwise have to turn away. • Common Opportunities You Might Be Missing ○ Businesses with maturing balloons on commercial real estate loans that would benefit from a fixed rate for 20-25 years. ○ Owners looking to move from leasing to owning their building to build equity and control occupancy costs. ○ Borrowers seeking to tap into built-up equity within their property to reinvest in their business. ○ Clients with existing adjustable-rate mortgages are concerned about rising rates and want stability. • Trigger Questions ○ “Do you own your building and does your business occupy 51% or more of the property?” ○ “Have you thought about expanding or renovating your space?” ○ “Would you like to lower your monthly payment while funding a new growth project?” ○ “Do you have a balloon payment coming due in the next 12-24 months?” • Current Market Timing Advantage ○ SBA 504 effective rates remain competitive with conventional fixed rates and are often lower. They also lock in for up to 25 years. ○ With economic uncertainty, SBA 504 lending enables clients to secure long-term stability while banks control credit risk. In today’s rate environment, where stability and liquidity matter more than ever, the ability to unlock growth through creative refinancing or expansion financing is a true differentiator. Every time you identify a 504 opportunity, you give a business owner the ability to invest in stability, expansion or innovation without overextending their resources. And when you do that, you deepen loyalty and create borrowers who see you as their long-term partner, not just their lender. YOUR DEBT PORTFOLIO MAY NOT BE KEPT IN HERE, BUT IT’S STILL AN ASSET They may not be currency, but debt portfolios which include credit card, auto deficiency, overdraft, judgements or commercial and consumer loans definitely have value. We’ll buy your debt portfolio from the last four years, with minimum sizes of $100k on at least ten accounts and no maximums. We’ll even walk you through the sales process to help with compliance and data integrity. To offload your debt portfolio, contact Craig Geisler at cgeisler@cherrywoodenterprises.com or (321) 247-5066. 19 Colorado Banker
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