Commercial Real Estate Loans

Taking advantage of good deals on commercial real estate has never been easier:

• Credit limits from $50,000 and higher
• Fixed or variable interest rates
• First lien mortgage position only
• Finance between 75% and 80% of appraised value
• Repayment terms up to 180 months; up to 240 month amortization
• Monthly principal + interest payments
• Flexible use: purchase or refinance; interim construction
• Often better rates/terms than a traditional small business bank loan
• We specialize in commercial property loans

Equal Opportunity Lender. The credit union makes loans and extends credit without regard to race, color, religion, national origin, sex, handicap, or familial status.

Table of Contents:

• Expert Articles/Papers
• Infographics
• FAQs

Expert Articles/Papers:

• Business Plan Essentials: Part One
  A business plan is more than your mission statement, it's your plan for success. A good business plan determines the likelihood of receiving outside funding and credit from suppliers. It’s a roadmap for the achievement of your goals and objectives by detailing the management of your operation, finances and marketing and promotions.
• Business Plan Essentials: Part Two
  With any success you’ve found the process of writing your business plan helps you in more ways than you originally thought. The process forces you to think about your business objectively, giving you a more realistic idea of the effort required and whether it’s truly a venture you want to pursue. In addition, it sparks your creativity, leading to the formation of new business strategies.
• Going Small Provides Huge Growth
  In this current economic climate, it’s natural to have negative connotations or aversions to anything affiliated with a financial institution. What many small business owners are not aware of is that service is the core edict of a credit union and reaching out to serve small business owners is a natural extension of that purpose.

Infographics:

• The True Cost of Tax Refund Loans
  
   
• The Real Game of Life
  
   
• Enhancing Small Business Lending
  
   
• Tighten Your Wallet and Your Waist
  
   
• Building for your future, now!
  

Frequently Asked Questions:

Q. What is the maximum repayment term for a small business real estate loan?

A. Currently, the maximum repayment term available is 15 years. However, we offer options for a longer amortization period with a balloon payment at loan maturity.

Q. Does GFCU offer business construction loans?

A. Yes. Let our expertise reduce your stress during the construction period. Also, we offer a one-time close from interim to permanent financing.

Q. Will Generations consider a second lien position mortgage?

A. No. We provide financing with only a first lien position mortgage.

Q. How much may I borrow when I use commercial real estate as collateral?

A. It depends. In a purchase transaction, we provide financing up to 80% of the lesser of the purchase price or appraised value. In a refinance transaction, we provide up to 80% of the appraised value (certain conditions apply).

Q. What other lending options are available with commercial real estate?

A. Generations works with certified development companies (CDCs) to provide SBA 504 loans.

Q. If I am not a member at Generations, am I still allowed to apply for a small business real estate loan?

A. Yes. However, if your loan request is approved, you will have to become a member before your loan is created.

Q. How do I apply for a small business real estate loan?

A. Our business loan application is available online or we can email it to you. Completed applications may then be returned to Generations by fax, mail or delivered to any GFCU branch.

Q. What should I be prepared to provide to Generations throughout my application process?

A. Compiled financial statements (including balance sheet and income statement), business tax returns, personal tax returns, and personal financial statements for any individual who owns at least 20% of the business. Financial documentation should be available for at least three previous years. Any business owner that owns at least 20% of the business is required to provide a personal guarantee.

Q. What questions should I anticipate from GFCU?

A. Questions will vary from business to business. Generally, we ask:

• How is your business structured?
• How long has your business been in operations?
• What is your total projected need?
• How much capital has been injected by the business owners?
• What assets are available for collateral?

Q. How long do I need to be in business before I apply for a loan?

A. Traditionally, GFCU requires at least three years of operations.