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2015.11.04 EDC Packet Combined
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2015.11.04 EDC Packet Combined
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Real Estate Gap Financing <br />OTB loans in partnership with private lenders to provide gap financing for real estate <br />acquisition projects — including projects financed through the SBA 504 program. OTB's <br />interest rate will be at or near the bank's rate, and will match the bank's term provided <br />that the term does not exceed 10 years- though we may amortize over a longer period. <br />Real Estate Acquisition Financing <br />OTB- in partnership with private lenders- provides permanent term financing for <br />commercial real estate acquisition- up to 90% of the property's appraised value. OTB <br />will provide the difference between the bank's LTV cap and 90%- up to 40% of the <br />appraised value. OTB will generally match the bank's rate with terms up to 10 years <br />(though amortizations may be longer). <br />Transactional Financing <br />Short term loans, for businesses with a clear short term borrowing need, but whose <br />cash flow cycle inhibits them from making regular monthly loan payments. <br />Transactional loans are targeted to contractors, vendors and manufacturers who have <br />received a contract or order but need working capital to fulfill the order, and payment is <br />structured to concede with completion of the contract. Typically Transaction financing <br />is available for needs of less than 6 months, and for $25,000 or less, though larger loans <br />are also available for businesses with performance bonds and escrow payment <br />arrangements. <br />To learn more about financing options and other services available to entrepreneurs from Open <br />to Business, visit www.Ogentobusinessmn.org, or contact an OTB Business Advisor at: <br />E-mail: info opentobusinessmn.arg <br />Phone: 612-789-7337 <br />
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