Underwriting Guidelines PDF Print E-mail

Getting Started - Underwriting Guidelines

As a national lender with community bank roots, we have the flexibility to design a loan that best meets your needs.

Our “standard loans” usually follow these guidelines:

Organizational Equity:

  • 25% or greater, post-transaction
  • 40% - New Owner/Operators

Different requirements may apply with respect to individual credit underwriting

Loan Term: Up to 7 years

Interest Only: Available upon request. During this time, the borrower may make multiple draws against the loan with all outstandings termed out at the end of the period.

Repayment: Monthly payments of principal plus interest, or principal including interest (mortgage-style amortization; fixed rate option only).

Reducing Revolving Loan: Borrower may prepay the loan, without penalty, through excess cash flow, and then re-borrow up to the amount that would have been outstanding under a normal amortization schedule.

Interest Rate: Competitive fixed and variable rates are available.

Prepayment Penalty: Fixed Rate Only, based on economic recapture if the loan is paid in full through sale or some other event.

Collateral: First priority interest in the restaurants financed.

Guaranties: Personal guaranty of the operator(s) and any affiliated companies will be required.

Debt Service Coverage: Minimum requirement of 1.2:1.0 after owner draws or distributions.

Fees: $350 documentation fee.

We always have the flexibility to structure customized loans for you based on your particular financing needs. Please contact us to discuss the details.

 

Sandra McCraren, President (bio)
847-432-2488
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Lori Christensen, Vice President (bio)
847-432-2399
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Sean Willison, Assistant Vice President (bio)
847-295-4272
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Melissa Reed, Commercial Documentation Officer (bio)
847-432-2394
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