California

GSP arranged the acquisition financing for a single-tenant industrial building in San Fernando Valley, California. Our client had reached capacity in their existing building and this acquisition added storage and an additional work area, allowing them to expand their business. The 90% Loan to Purchase financing was arranged under the SBA 504 program, where the rate of the Bank’s 1st Trust Deed and SBA’s 2nd Trust Deed blended to a 4.375% fixed rate with a 20 year term and amortization. As an acquisition, time was of the essence and the Borrower was being pressured from outside sources to execute, yet was concerned about making the most viable choice for the long-term benefit of his business. GSP compiled a detailed yet easy to follow savings analysis comparing conventional debt to SBA financing. This summary allowed the Borrower to quickly weigh his financial options and move forward to funding.