A secured business loan, also known as a commercial equity line of credit, is ideal for a business owner who owner-occupies their commercial building.

Managing cash flow is one of the most important issues for business owners. If you need some cash for business expenses or to expand your business, use your commercial property’s equity - quickly and easily.

This business loan can be in first position if your property is free and clear of any loans or in second position subject to the existing first loan allowing for such financing. If you have an existing loan on your property, it is advisable to review your loan documents or call your commercial mortgage company to verify your ability to obtain secondary financing before applying for a secured equity business loan.

A commercial equity line of credit, or CELOC, is a great financial tool for your business or commercial property. With the added flexibility and small amount of time and paperwork required, a CELOC gives small business owners that extra advantage to help grow their business.

It is a viable option to traditional cash out refinancing. If your existing loan is solid, and you simply want access to your equity, why go through the expense and trouble of a traditional commercial refinance?

Once your CELOC is approved and funded you then decide how much money you want to draw on your new line of credit. Take out as much or as little as needed. Take advantage of low, interest only payments for the first five years. Pay more to the principal when you can, with no prepayment penalty.

Option available: What to do if you don’t owner-occupy at least 51% of your commercial building?

If you do not owner-occupy at least 51% of the commercial property, one alternative is to obtain a small business home equity line of credit. This option allows the equity in your home to work for your business.

A second option is to obtain a commercial second mortgage loan. This option is discussed on the home page under the tab "2nd Mortgages."

Features and Benefits of the Secured Equity Line Program
15 year term
Interest-only payment option for the first 5 years
An additional 10-year repayment period of principal and interest, giving you the option to either keep your variable rate or convert to a 1, 2, or 5 year ARM
Cash available when you need it. Make payments only on what you borrow
Credit line can be in 1st or 2nd position
Use your home’s equity as an alternative security for the credit line
Qualify using stated income up to $50,000 or full income documentation above $50,000. Some exceptions apply.
No major paperwork needed
No new financial statements required every year

Choose the size credit line and terms to meet your needs:
Credit lines starting from $25,000 and can go to $1 million or more
Borrow up to 75% combined loan-to-value with your existing first loan
When it’s time to repay the principal and interest, you will have the flexibility you need to choose an option that makes the most sense for your business five years from now
Keep the same variable rate structure as your revolving line for the next 10 years, or
Choose a 1-, 2-, or 5-year adjustable rate loan

Low rates and fees
Interest rate based on Wall Street Journal Prime Rate. The current interest rate for this program is priced at PRIME – 1.5%!
No appraisal required for most approvals. Desktop evaluation or comparable sales sources used for value will save you time and money
Typically loan original fee covers all expenses including property valuation, food determination certificate, title report, environmental issues checklist, normal recordings
No annual fees.
Option ARM is a nominal $86 doc fee at conversion

Qualifications
You must owner-occupy at least 51% of the commercial property
Personal credit score minimum is 650 middle score, business credit score minimum is 160
Own your business for 2+ years and be profitable
High approval rate. Common sense underwriting designed to say “Yes” to your request rather than “No”
Fast fundings. Obtain your funds via direct deposit, wire or check – your choice.

Make your commercial property’s equity work for you to get the cash you need for your business – quickly and easily.

Apply Online Now