SBA has announced its Guarantee Fee and Lender’s Annual Service Fee for the fiscal year beginning on October 1, 2023. The fees are effective for all SBA 7(a) loans approved between October 1, 2023 and September 30, 2024. All fees are based on the gross loan amount. This new fee structure is good news for borrowers with loan requests under $1,000,000. Please contact your Account Executive to run your loan numbers. The following is a summary of the fees. A link to the SBA Information Notice is provided below. Guarantee Fee For loans of $1,000,000 or less: 0.00% For loans of $1,000,001 to $2,000 ..read more

We are just at the beginning of the reset in the market. A decline in credit availability is just the tip of the iceberg. With the recent blow up in small banks and now spreading to some large institutions, look for credit availability to continue to decline. In the short term, real estate closing volumes will decline, but the real pain will be in the long term with a substantial reset in prices as credit continues to dry up which will ultimately lead to a cooling economy ..read more

Approval rates - Recent bank collapses alongside another increase in interest rates continues to shift the industry to increasingly stringent lending standards. With higher credit requirements, fewer businesses will qualify to obtain a loan in the full requested amount. As lenders slow their loan approval rates, small businesses may need to wait longer to receive any loan amounts for which they receive approval. Credit Cards Average 20% interest - Credit card interest rates have reached an average of 20%. Since most credit cards have a variable interest rate, yesterday’s rate increase directly ..read more

According to the latest Biz2Credit‘s Small Business Lending Index, small business loan approval percentages at big banks slipped again in February, falling from 14.4% in January to 14.2%. This marks the ninth consecutive month in which big bank approval percentages have declined. Meanwhile, approval rates of business loan applications at small banks also dropped in February to 21.3%, down one-tenth of a percent from 21.4% in January 2023 ..read more

Hotel and motels are facing challenging times in the wake of COVID 19 related travel interruptions. Occupancy rates at many rural and suburban properties are starting to stabilize while urban locations have up to 50% more vacancy than last year's holiday season. Financing is still available for flagged hotel acquisition or refinancing. The latest trend in hospitality is repositioning older, classic motels for retro hungry travelers. Now may be a great time to reposition a challenged property ..read more

U.S. commercial real estate pricing grew at an annual rate of 1.4% in September, Real Capital Analytics reported. Continued gains in the apartment and industrial sectors balanced out declines in retail and office prices, according to the latest RCA CPPI: US summary report ..read more

The Green Street Commercial Property Price Index increased 0.4% in October, continuing a run of all-time highs, the Newport Beach-CA advisory firm reported Thursday. The all-property index has increased 18% this year and is now 9% higher than it was before the pandemic ..read more

Unlike previous economic crises, this pandemic has impacted the commercial real estate sector very unevenly. Warehouse and Industrial properties are enjoying high demand as shoppers move online and distribution requirements boom. Restaurant, office and retail spaces, especially in dense business districts, are being decimated. Hotel, motel and hospitality occupancy levels are down nearly 50% year over year...but many RV Parks are turning away visitors. This uneven distribution of impact is unusual but creates opportunity for investors and business owners. Contact K2 Commercial Finance for help ..read more

Everyone should remember that the Covid related benefits for traditional SBA lending expire on September 30th. The benefits include no guarantee fees, and the government will make the first three months of payments on your loan up to $9,000 per month. SBA loans can be uses for purchasing or refinancing owner-occupied real estate, working capital, debt restricting, partner buyouts, startups, and or acquiring a business. Keep in mind that the September 30th deadline is for a loan to be funded. So to take advantage of the benefits, the clock is ticking to get your application in ..read more

The key to being approved for a mortgage as a self-employed individual is to provide the bank with ample evidence regarding your financial stability. Being the expert in mortgages, K2 Commercial Finance will provide you with all the information about mortgage options at your disposal and how to deal with lenders ..read more