Link Up Newsletter
- Attention Lenders -
Are you consistently competing for the same Attention business? Small Business Owners OFFERING Your Customer the Are you looking to purchase, expand or construct a building for your business? ASBC can assist you and partner with the lender of your choice to provide:
SBA 504 LOAN as an option may provide you the competitive advantage you need to get the loan!
Mitigation of Credit Risk: Lenders have first lien position and typically a 50% loan-to-value ratio, minimizing collateral risk.
Active Secondary Market: There is an active secondary market for 504 first mortgage loans again, so banks can reduce their exposure to nearly zero and enhance their non-interest income while retaining the customer’s primary banking relationship.
Management of Overall Lending Limits and Industry Exposure: With 504, smaller banks can entertain larger projects. Larger banks can limit • Up to their exposure to certain industries and/or to a Strengthening of Core Earnings: Pricing of the 90% financing bank’s loan is at its own discretion. 90% particular borrower. The reduction of CRE loan for the concentration on your balance sheet reduces financing also means that more of the customer’s total project regulatory concerns. funds remain on deposit. The bank is able to earn fees and interest on the interim loan, and generate • If land has been owned Assist More Customers: Leverages lending fee income from sale premiums and loan fees if it for 2 years, the equity may chooses to sell the first mortgage loan in the capacity across more borrowers and diversifies be sufficient without secondary market. default risk and reduces loss in the event of additional cash injection default. • We require No up front CRA Credit: Banks that participate in SBA 504 deposits or fees loans are eligible for Community Reinvestment Gain New Customers: SBA 504 loans are Act (CRA) credit on certain projects. designed to finance growth companies, and a • Some soft cost and fees (From NADCO website) business owner who is investing in a permanent can be financed into the facility is often entering into his largest businessloan and into the 504 debenture related loan. An SBA 504 loan often becomes the basis of an entire banking relationship. February 2013 • 10 or 20 year fixed rate on up to 40% of the project
SUCCESS
The Fairhope Brew
4. 625% 3.
Current Rates: 29%
February 2013
20 Years Fixed
•••
10 Years Fixed
Just For
LAUGHS!
How ASBC assisted in the process:
Alabama Small Business Capital partnered with Merchants and Marine Bank in providing long-term fixed, rate financing via the SBA 504 Loan for FBC’s brewing equipment. This equipment includes a 5-barrel brewing system with five 10-barrel fermenters and two 10-barrel bright tanks, giving the brewery an annual capacity of nearly 900 barrels of beer. Business Background: The Fairhope Brewing Company (FBC) is a privately owned company that brews craft beer for distribution and operates a taproom in Fairhope, Alabama. With more than 2,000 craft breweries operating in the United States, the team – Brian Kane, Michele Kane, Jim Foley, Dan Murphy, and Gabe Harris – has had no shortage of
inspiration. They have visited more than 50 craft breweries across the country. Upon opening in January, FBC became the 12th craft brewery to open in the state of Alabama and the first ever to open in Baldwin County. FBC will offer a wide variety of flavorful beers. On tap at any time, there will be 4 beers that are available year-round and 1 seasonal offering which will rotate depending on the time of year. The range of beers is as follows: • Everyday Ale – Fairhope Everyday Ale is made to pair with those gorgeous Eastern Shore days along the bay. Handcrafted with British Maris Otter malt and Kent Golding hops, this well-balanced English-style golden ale packs a lot of flavor into a beer without a lot of alcohol. (3.8% Alcohol By Volume)
STORY
FEATURED BUSINESS THAT BENEFITED FROM ASBC’S SBA 504 LOAN
wing Company
• Painted Black IPA – The Painted Black IPA is one of the first examples of this new style to emerge from the South. It combines the dark-as-night color of a stout with a prominent "Northwest" hop aroma — citrusy, piney, and resinous. The body has some sweet malt flavors, with just a hint of roastiness and toasted malt. (7% ABV)
The Fairhope Brewing Company is located at 914 Nichols Ave., just a block off Highway 98 in Fairhope, and less than five minutes from beautiful downtown. The taproom offers a comfortable atmosphere to meet up with friends, enjoy a variety of hand-crafted beers, take a brewery tour, or play some darts. You can also look for FBC beers on tap at your favorite Gulf Coast bars and restaurants, from Fairhope to Daphne, Mobile to Orange Beach and everywhere in between.
FE
ATURE
VI
D
• Section Street Wheat – We thought we were settled on three year-round beers, but when the FBC founders tried the pilot batch of Section Street Wheat, we liked it so much that we added it to our regular lineup. It's a traditional wheat beer to the core, crafted with organic pilsner and wheat malts from Germany and a moderate dose of hops from the Czech Republic. German wheat yeast provides a distinctive flavor to the final product. (5% ABV) • Fairhope 51 – Fairhope No. 51 is a classic American pale ale, brewed with a combination of American-made Falconer's Flight hops and German hops. Named for being the 51st recipe entry into head brewer Dan's beer notebook, this pale ale is packed with hop flavor but not overly bitter. Though this crisp, flavorful beer was 51 in Dan's notebook, we expect it to be your top choice for a pale along the Eastern Shore. (5.8% ABV)
DEO
U O I Y N F G O N R I P M E ED E K
• Closing Counsel Changes-
SBA has advised that CDC Closing Counsel will no longer be permitted to also represent the Third Party Lender (1st Mortgage Lender).
• SBA Policy Notice-
Effective 1/28/13- SBA is participating with USDA, FEMA, EDA and other agencies to provide financial assistance to small businesses adversely affected by drought in counties which have received an SBA EIDL Disaster Declaration designation of economic injury disaster for drought. The declared disaster areas may be found at http://www.sba.gov/disaster, (hyperlink titled “2012 Drought Disaster Assistance”). This site shows the “primary counties included in the Declaration, as well as counties contiguous to them, and is updated on a regular basis. Specifically, SBA has authorized up to a six month deferment for existing small business disaster loan borrowers in those primary counties included in the Declaration that have suffered hardship. Small business borrowers in these areas that are experiencing difficulty in making their loan payments due to the drought are eligible to request a deferment of interest and/or principal payments for up to six months. The SBA offer for deferment only extends to SBA business disaster loan borrowers. Borrowers that are located in counties contiguous to the primary counties in the disaster areas and have suffered economic hardship because of the drought may also be eligible to request up to a six month deferment of interest and/or principal payments.
• Need Information on Labor Surplus Areas?
Click on the link below which is an updated list of Eligible Labor Surplus Areas as of October 1, 2012- September 2013. http://www.doleta.gov/programs/pdf/Final_Labor_Surplus_Areas_List.pdf
Need A Business Plan? Here’s a quick “How To Get Started” Video!
E H T E K I L D L U O WE W NITY TO U T R O P OP R U O Y N EAR
e ASBC Team! Angie Sweatman Vice President Cell:(334) 318-8064 angie@asbc504.com
Brian Swann
AVP/Underwriter Cell:(334) 332-0976 brian@asbc504.com
O. David Chunn, Jr. VP/Bus. Dev. Officer Cell:(205) 306-1888 david@asbc504.com
Debbie Parnell
Closing/Funding Manager Cell:(334) 328-9520 debbie@asbc504.com
Alabama Small Business Capital Assisting Small Business Owners in Alabama, Georgia and Florida
3120 Frederick Road, Suite K, Opelika, Alabama 36801 One Perimeter Park S., Suite 100N, Birmingham, Al 35243 Office:(334) 275-9700 • Fax:(334) 275-9704
Home Of NO Upfront Fees and NO Borrower Deposits!
Important Links:
ASBC www.fbdc.net
U.S. SMALL BUSINESS ADMINISTRATION www.sba.gov
ALABAMA SBA RESOURCE GUIDE
SCORE www.score.org
U.S. SBA YOUTUBE CHANNEL www.youtube.com/user/sba
www.smallbusiness3.com/pdf/english/alabama.pdf
ALABAMA ASSOCIATION OF REGIONAL COUNCILS www.alarc.org GEORGIA SBA RESOURCE GUIDE
www.smallbusiness3.com/sites/default/files/guide-pdf/english/georgia.pdf
NORTH FLORIDA SBA RESOURCE GUIDE www.smallbusiness3.com/pdf/english/florida-north.pdf
SMALL BUSINESS DEVELOPMENT CENTERS www.asbdc-us.org
ALABAMA SECRETARY OF STATE www.sos.state.al.us GEORGIA SECRETARY OF STATE www.sos.ga.gov FLORIDA SECRETARY OF STATE www.sos.ga.gov