Diamond Financial Services

Franchise Business Loans (nationwide)

We are nationally recognized Business finance experts with a specialty in Franchise Lending. We understand our borrower’s needs for fast pre-qualification, loan options and quick decisions. At FranchiseFinancing.com, we are fully committed to our clients and we strive to exceed your expectations!

SBA 7a Loans – The SBA 7a loan program is the most widely used SBA program. Loans are available up to $2,000,000 and may be used for virtually any business purpose.

SBA 504 Loans – The SBA 504 program is an excellent long term finance options specially designed for the purchase of long term assets such as owner-user commercial real estate or heavy machinery and equipment.

Conventional Business Loans – Conventional loan programs do not involve the SBA and are available for us to $6,000,000.

Loan Comparison Chart
 
CONVENTIONAL
SBA 7a
SBA 504
Loan Types/
Purposes
Real estate acquisition, recapitalization, expansion, business/partner buyout, refinance and construction Real estate acquisition, expansion, construction, recapitalization refinance, partner buyout, working capital, machinery and equipment Acquisition of commercial real estate and fixed assets
Real Estate/
Property Types
 All property types All property types All property types
Loan Size
 $500K to $6 million $500K to $2 million $500K to $5 million 1st mortgage loan is 50% of project costs. 2nd mortgage/SBA Debenture is 30-40% of project costs
Loan Term
(years)
 Up to 25 years (fully amortizing) 10 years (when leasing space) Up to 25 years (with real estate) Up to 25 years (fully amortized) Up to 20 years (FA) 2nd Mortgage
Interest Rate
 Fixed & variable rates
(call us to review options)		 Floating rate (variable) up to 2 3/4 over prime. Adjusted quarterly Fixed, floating and adjustable rates available.
Pre-Payment
Penalty
 Declining scale (as loan matures) No prepayment penalty on loans 15 years or less. Above 15 years: 5%, 3% and 1% Declining scale
Working Capital included
 Varies by Lender Always included As per SBA Guidelines
Collateral
Requirements
 Mortgage on business real estate. UCC Filings and other items as required by lender Mortgage on business real rstate (if available, eligible) UCC filings on machinery & equipment 1st & 2nd Mortgages/Deeds of Trust. Additional collateral my be required.
Personal
Guarantee
 Full guarantee of all principals Full guarantee of all owners/principals who own 20% or more of the project/business. Full guarantee of all principals who own 20% or more of the project/business.
Loan To
Value (LTV)
 Maximum 80% Up to 90% (start-up's 75 - 80%) Up to 90% of commercial real estate value
Debt Service
Ratio
 Minimum , 1.20x for current fiscal year Minimum 1.0X Minimum 1.0X for past fiscal year or recent interim period.
Fee
 Minimum 1% origination fee One time SBA Guarantee Fee (as regulated by SBA) Minimum 1% origination fee