Small Balance Commercial Loans

1. Conventional commercial mortgages to 75% loan to value.
2. SBA Loans to 90% loan to value.
3. B&I loans to 90% loan to value ($40,000,000 maximum under this

We are a secondary market loan placement firm, specializing in owner
occupied and partially owner occupied commercial real estate loans
$250,000 to $6,500,000. We do not generally charge points or
origination fees on our commercial mortgage products.

We offer six different commercial loan products:

1. Full Document Commercial Loans - 85% is the maximum we will lend;
this is made up of a 75% first trust commercial loan and up to a 10%
second trust commercial loan. Our minimum credit score is 660 however
we do not allow any prior history of BK on our Full Document
commercial loan product. Loan amounts from $250,000 to $15,000,000

2. Stated Income Commercial Loans – 80% is the maximum we will lend;
we do not offer second trusts on this product. Our minimum credit score
is 650 and no BK in the past 7 years is allowed. Loan amounts from
$250,000 to $2,000,000

3. Commercial Bridge Loans – 70% is the maximum we lend; second
trusts are permitted but we do not offer them. There are no minimum
credit score requirements. The commercial bridge loan is offered from
$1mm to $15mm in most metropolitan areas. General purpose
commercial properties are allowed with a special interest in income
producing properties.

4. SBA 504 Commercial Loans – 90% is the maximum combined loan to
value between our commercial loan and the SBA debenture. No
minimum set credit score. Loan amounts from $500,000 to $7,500,000.

5. B&I Commercial Loans – 90% is the maximum we will lend. No
minimum set credit score. Loan amounts from $1mm to $15,000,000.

6. Non Profit Loans – 80% first trust commercial loans and up to 100%
CLTV with a second trust.
On a select basis
What you can expect from us:

1. Conditional approvals in as little as 24
2. Weekly conference calls and training.
3. Aggressive products.
4. Aggressive pricing.
5. Creative deal structuring.
6. Quick No’s.
7. Up to 4% Yield Spread Premium
Citi Prime Group diverse in-house origination capabilities, encompassing Fannie Mae, Freddie Mac, FHA, Hard Money, Hedge Funds, conduit, bridge,
mezzanine, and balance sheet whole loans,CitiGroup provides the capacity to structure deals to meet the customized needs of our borrower. This has been
realized in the steady growth of our origination portfolio - with approximately $1.1 billion in closed loans in 2004, $2.5 billion in 2005, and approximately $3
billion in both 2006 and 2007 with our affiliates Lenders.
We manage the entire loan process from application to securitization and beyond, we remain highly attentive to our borrower’s complex needs throughout
the life of the loan, combining the benefits of our capital markets expertise with the approach of a portfolio lender.
The synergistic combination of commercial real estate lending, servicing, special servicing, capital markets expertise and high-yield investment capabilities
that CitiGroup Commercial offers affords a unique position in the market, enabling us to provide a full array of products and services to borrowers, mortgage
brokers and investors - creating value every step of the way.  Our agility, dedication and resources are unmatched - offering the best in service, execution
and commitment.

CitiPrimeGroup, New York, NY   2009 CitiPrimeGroup. All rights reserved   Tel:866-675-3729  Apply online        A  Nationwide Consulting Firm
CDC/504 Loan Program
What is the CDC/504 Program?
The CDC/504 loan program is a long-term financing tool, designed to encourage economic
development within a community. The 504 Program accomplishes this by providing small
businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or

A Certified Development Company (CDC) is a private, nonprofit corporation which is set up to
contribute to economic development within its community. CDCs work with SBA and private sector
lenders to provide financing to small businesses, which accomplishes the goal of community
economic development. Typically, a CDC/504 project includes:

A loan secured from a private sector lender with a senior lien covering up to 50 percent of the
project cost
A loan secured from a CDC (backed by a 100 percent SBA-guaranteed debenture) with a junior
lien covering up to 40 percent of the project cost
A contribution from the borrower of at least 10 percent of the project cost (equity)
This type of setup means that 100% of the project cost is covered either by contribution of equity
by the borrower, or the senior or junior lien.

How 504 Loan Funds May Be Used

Proceeds from 504 loans must be used for fixed asset projects, such as:

The purchase of land, including existing buildings
The purchase of improvements, including grading, street improvements, utilities, parking lots and
The construction of new facilities or modernizing, renovating or converting existing facilities
The purchase of long-term machinery and equipment
The 504 Program cannot be used for working capital or inventory, consolidating or repaying debt,
or refinancing.

To be eligible for a CDC/504 loan, your business must be operated for profit and fall within the
size standards set by the SBA. Under the 504 Program, a business qualifies as small if it does not
have a tangible net worth in excess of $7.5 million and does not have an average net income in
excess of $2.5 million after taxes for the preceding two years. Loans cannot be made to
businesses engaged in speculation or investment in rental real estate.

Maximum Debenture (Total Amount of Loan)
The maximum SBA debenture is $1.5 million when meeting the job creation criteria or a community
development goal. Generally, your business must create or retain one job for every $65,000
provided by the SBA, except for small manufacturers which have a $100,000 job creation or
retention goal (see below).

The maximum SBA debenture is $2.0 million when meeting a public policy goal. These include:

Business district revitalization
Expansion of exports
Expansion of minority business development
Rural development
Increasing productivity and competitiveness
Restructuring because of federally mandated standards or policies
Changes necessitated by federal budget cutbacks
Expansion of small business concerns owned and controlled by veterans (especially service-
disabled veterans)
Expansion of small business concerns owned and controlled by women
The maximum debenture for small manufacturers is $4.0 million. A small manufacturer is defined
as a company that has its primary business classified in sector 31, 32, or 33 of the North American
Industrial Classification System (NAICS) and all of its production facilities located in the United
States. To qualify for a $4.0 million 504 loan, your business must meet the definition of a small
manufacturer and accomplish one of the following:

Create or retain at least one job per $100,000 guaranteed by the SBA [Section 501(d)(1) of the
Small Business Investment Act (SBI Act)]
Improve the economy of the locality or achieve one or more public policy goals [sections 501(d)(2)
or (3) of the SBI Act]
Generally, the project assets being financed are used as collateral. Personal guaranties of the
principal owners are also required.

Interest Rates and Fees
Interest rates on 504 loans are pegged to an increment above the current market rate for 5-year
and 10-year U.S. Treasury issues. Maturities of 10 and 20 years are available. Fees total
approximately 3 percent of the debenture and may be financed with the loan.

Important Notification Below:
504 Development Company Program Fee Eliminations:

For eligible loans approved through the Agency’s section 504 Development Company Program on
or after February 17, 2009, The SBA will temporarily eliminate two program fees:

Third-Party Participation Fees (Small Business Investment Act Section 503(d)(2) fees codified at
13 CFR 120.972); and
CDC Processing Fees (13 CFR Section 120.971(a)(1) fees).
Consistent with the Recovery Act’s temporary elimination of CDC Processing Fees, CDCs will no
longer be allowed to collect deposits from small business applicants that would have gone towards
payment of the CDC Processing Fee upon loan approval under 13 CFR 120.935. SBA will
reimburse the CDCs for the waived CDC Processing Fees.

The SBA will pay CDCs two-thirds of the estimated CDC Processing Fee at the time of loan
approval by the SBA or upon the issuance of a loan number for a loan approved under the
Premier Certified Lenders Program. The remainder of the fee will be paid immediately following
debenture funding and will be equal to 1.5% of net debenture proceeds for which a CDC does not
collect the CDC Processing Fee, minus the amount previously paid. If a borrower has already paid
a CDC for the fee, the CDC must reimburse the borrower from the SBA refund. The SBA will not
permit CDCs to cancel loans approved by the SBA prior to February 17th, 2009 and resubmit
them in order to qualify for the reimbursement of the processing fee. If the Participation Fee has
already been paid to the SBA on an eligible loan, the SBA will refund the fee.

For More Information
There are about 270 CDCs nationwide, each covering a specific geographic area. If you are
interested in applying for a 504 loan, contact the CDC nearest you. You can get a listing from your
local SBA District Office.

Related Articles:
Am I a Small Business Concern?
Minority Owned Businesses
Service-Disabled Veteran-Owned Small Business Concerns (SDVOSBC)
Veteran & Service-Disabled Veteran Owned
Women Owned Businesses
Related Success Stories:
Recovery Benefits in 504 Loan Helps Medical Office Expand
Small Business Owner Receives 504 Loan for More Space
Small Business Owner Receives 504 Loan, Moves into Larger Facility
Small Business Owner Receives 504 Loan to Re-build Business
Small Business Owner Receives 504 Loan, Purchases Office and Warehouse Space
Woman-owned Business Receives 504 Loan, Renovates Business
504 Loan Helps Small Business Build its Own Manufacturing Facility
Small Business Achieves Growth with 504 Loan
Small Business Owner Expands with 504 Loan, Adding Jobs
Related About SBA Articles:
504 Loan Refinancing Program
Related FAQs:
How do I finance my Woman Owned Business?
What is SBA's definition of a small business concern?
7(a) Loan Program
The 7(a) Loan Program includes financial help for
businesses with special requirements. For example,
funds are available for loans to businesses that handle
exports to foreign countries, businesses that operate
in rural areas, and for other very specific purposes.

Special Purpose Loans Program
SBA offers several special purpose 7(a) loans to aid
businesses that have been impacted by NAFTA, to
provide financial assistance to Employee Stock
Ownership Plans, and to help implement pollution
control mechanisms. ...

Express & Pilot Programs

SBA's Express and pilot programs offer streamlined
and expedited loan procedures for particular groups of
borrowers, notably active duty military personnel,
veterans, and borrowers from distressed communities.
The Application Process
The process to apply for any loan can be intimidating. This section provides resources to help you understand the
process and what you should expect. It’s also helpful to know what factors influence the decision of a lender when your
application is reviewed.

Credit Factors

How do lending institutions assess your application? The answer generally depends on the type of funding you are
seeking and what assets you can provide for collateral. This section provides important information about the factors
that lenders ...

Determining Your Financing Needs

Before you seek financial assistance, you should thoroughly assess your current financial situation. Ask yourself the
following questions to determine your business' financing needs: Do you need more capital or can you manage...

Business Loan Checklist

The SBA is not your only source for small business loans. State and local economic development agencies as well as
numerous nonprofit organizations provide low-interest loans to small business owners who may not qualify for...
SBA Loan Application Checklist
Once you have decided to apply for a loan guaranteed by the SBA, you will need to collect the appropriate documents
for your application. The SBA does not provide direct loans. The process starts with your local lender, working...

How to Apply for an SBA Loan

While the standards for SBA-qualifying loans are more flexible than those for other types of loans, lenders still require
extensive documentation to evaluate your loan request. You should strive to make the best possible...
FHA/HUD and USDA commercial loan products are available for certain income properties including multifamily. Our
team of Government loan experts will work closely with you on every aspect of your project.

To submit your proposal online, please
Click Here for the short project evaluation form.  We will immediately review your
request, and if it meets initial criteria, we will submit to the office that handles your area.

If you have any question, please feel free to Contact us at any time.

This program is ideal for low vacancy multifamily properties in need of significant rehab. Warren Gomberg brings a
wealth of experience to this arena as he closed over 100 HUD loans in 1995 and 1996. Highlights of the loan program

Current Interest Rate

Current rates are in the mid 6's
Maximum Loan Amount

Determined by the lowest of: a) 90% of eligible development costs (100% for non-profit), b) 1.11 Debt Service
Coverage (1.05 for non-profit), c) HUD’s statutory mortgage limits, d) For rehab add 90% of the “as is” value (100% for
non-profit) plus 90% of the total development cost (100% for non-profit).
Minimum Loan Amount

Not cost effective for loans below $5,000,000
Loan Term and Amortization

Construction loan plus up to 40-year permanent loan   –   40-year Amortization
Fixed Rate

Yes, for both Construction and Permanent.
Eligible Properties

Multifamily projects to be built or projects undergoing substantial rehabilitation.  Detached structures and row houses
Eligible Borrowers

Single Asset Entity (for both profit and non-profit).
Occupancy Requirement

Underwritten at a maximum 95% occupancy.
Tax and Insurance Escrows

Monthly deposits required.

Non-recourse for both Construction and Permanent.
Commercial Space

Maximum 10% of gross floor area and maximum 15% of potential gross income.
Required Reports

Market Study, Appraisal, Architect/Cost Review and Phase 1 Environmental.

Negotiable.  Generally three year lockout with declining percentage of principal thereafter up to 10 years (7-6-5-4-3-2-

Subject to Lender and HUD approval and payment of assumption fee.
Origination Fee and Good Faith Deposit

Both these fees are negotiable, based on project type.
Expense Escrow

Yes, sufficient to cover Lender’s expenses and third-party report costs.
HUD Application Fee

Non-refundable fee of $3 per $1,000 (0.3%) of the mortgage amount due to HUD with the firm commitment
submission package.
HUD Inspection Fee

0.5% of the mortgage amount for new construction or 0.5% of the cost of repairs for substantial rehab.
Legal/Closing Fee

Borrower pays Lender’s counsel fee and miscellaneous closing costs.
Rehabilitation Qualifications

Repairs must exceed
$6,500 per unit (adjusted for local high cost factor), 15% of the “as rehabbed” appraised value or
replacement of two or more major building systems.
HUD Mortgage Insurance Premium (MIP)

HUD sets the cost of the FHA Insurance.  The MIP is paid in advance for the construction period and is escrowed
monthly after amortization commences.
Davis Bacon

Davis Bacon labor standards and wage requirements apply to construction work and rehab work                                    A Global Capital Company
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