How Complex Deals Can Still Secure Debt

Los Angeles

A recent study found that half of all deals that fall out of escrow have difficulty meeting loan requirements. While there is ample capital in the market today for a variety of deals, some borrowers still find securing debt challenging. For borrowers unable to secure a loan through a traditional lending source, there are options. Private lenders have become a popular source of capital for deals that don’t meet standard requirements, particularly with SBA loans.

“The small business administration lending platform can assist borrowers who do not qualify for a conventional loan’s underwriting requirements,” Carson Lappetito, president of Sunwest Bank, tells GlobeSt.com. “The SBA programs can be used to help finance a variety of transactions including real estate acquisition, commercial equipment, business acquisitions and partner buy-outs. The Small Business Administration provides a partial guarantee of the loan or a subordinated note to help augment the credit of the borrower.”