Transaction Overview
At the start of the Coronavirus crisis, George Smith Partners secured a $2,000,000 private money bridge loan to enable a business owner liquidity capital needed to grow his business. The loan paid off an existing SBA loan and provided approximately $1,000,000 in cash-out. The monthly payment on the new interest-only loan is lower than the existing financing due to the 20-year amortization. This is true even with the cash-out.
Challenges:
At the start of this crisis, we found a lender with liquidity who was able to move quickly and close within 5 days. Even with everyone shifting to working at home because of the crisis, the Lender stayed closed as promised.
Solution:
GSP used its experience and relationships to identify a lender who could understand the need to close on time in the middle of a global crisis. The new capital allows the Sponsor to expand their business, as other companies in their field are unable to access capital.
