T I E R - 1

Capital Advisors

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Loan Types

We help businesses and investors secure the right funding with expert guidance and personalized support.

Tier-1 Capital Advisors

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With deep expertise in commercial lending, Tier-1 Capital Advisors provides strategic funding solutions tailored to each client’s unique goals. We serve businesses and investors with clarity, confidence, and proven results.

Example Loan Scenarios:

1

SBA 7(a) Loan for Partner Buyout – $3,500,000

Our team understands lender priorities, underwriting logic, and market shifts. This allows us to structure smart, bank-aligned deals that protect our clients’ interests.

  • Loan Structure:

    • Loan Type: SBA 7(a) – Partner Buyout

    • Loan Amount: $3,500,000

    • Term & Amortization: 10 years fully amortized

    • Interest Rate: Variable, indexed to either SOFR, Prime, or U.S. Treasuries

    • Typical spread: +2.00% to +3.00%, based on borrower’s credit profile and business cash flow

    • Prepayment: No prepayment penalty

    • Collateral: Business assets and personal guarantees

    • Use of Funds: 100% allocated to equity buyout

  • Equity Injection Requirement:

    • SBA guidelines require a minimum equity injection of 10% of the total project cost

    • In this case, the borrower must contribute $350,000 in cash or documented assets

    • If the business has strong historical cash flow and the buyer is an existing owner, lenders may consider waiving additional collateral requirements

  • Key Considerations:

    • SBA 7(a) loans are ideal for partner buyouts due to their flexibility and longer amortization

    • Lenders will evaluate the business’s debt service coverage ratio (DSCR), typically requiring a minimum of 1.25x

    • The borrower’s personal credit, liquidity, and management experience are critical to underwriting

    • 2

    Acquisition Financing – 90-Unit Multifamily Property

    An investor is acquiring a stabilized 90-unit multifamily property in a major metro area. The total purchase price is $12,000,000. Financing options vary based on loan type, property condition, and borrower profile.

    Loan Type Max LTV Typical Term Notes
    HUD 221(d)(4) Up to 85% 40-year amortization Best for new construction or substantial rehab: long processing timeline
    Fannie Mae / Freddie Mac Up to 80% 10–30 years Competitive rates: ideal for stabilized properties with strong occupancy
    Conventional Bank Loan Up to 75% 5–10 years Faster close: more flexible underwriting but lower leverage
    Hard Money / Bridge Loan Up to 90% 6–24 months High cost: used for quick close or repositioning strategies
    HUD 221(d)(4)

    Max LTV: Up to 85%

    Typical Term: 40-year amortization

    Notes: Best for new construction or substantial rehab: long processing timeline

    Fannie Mae / Freddie Mac

    Max LTV: Up to 80%

    Typical Term: 10–30 years

    Notes: Competitive rates: ideal for stabilized properties with strong occupancy

    Conventional Bank Loan

    Max LTV: Up to 75%

    Typical Term: 5–10 years

    Notes: Faster close: more flexible underwriting but lower leverage

    Hard Money / Bridge Loan

    Max LTV: Up to 90%

    Typical Term: 6–24 months

    Notes: High cost: used for quick close or repositioning strategies

    • Example Breakdown – Fannie Mae Option:

      • Loan Amount: $9,600,000 (80% of $12M)

      • Term: 10 years with 30-year amortization

      • Interest Rate: Fixed or floating, based on market conditions

      • Prepayment: May include yield maintenance or step-down penalties

      • Underwriting Metrics:

      • DSCR ≥ 1.25x

      • Occupancy ≥ 90%

      • Borrower net worth and liquidity requirements apply

  • Key Considerations:

    • Agency loans (Fannie/Freddie) offer non-recourse options and attractive rates for qualified sponsors

    • HUD loans provide unmatched leverage and amortization but require patience and experience

    • Hard money is a tactical tool for time-sensitive acquisitions or value-add plays