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Commercial Real Estate Mortgage Loans on Improved Property
Commercial real estate mortgage loans require a thorough analysis of cash flow as well as any unique circumstances surrounding the loan request. Due to the many different types of income-producing properties, the type and marketability of property offered as collateral/security are important considerations. Citizens makes commercial real estate loans if the property is either income-producing or scheduled to become income-producing. Such loans provide long term repayment options for the purpose of acquiring property, expanding an existing facility or refinancing. Examples of the various types of properties financed include multi-family apartment buildings, retail centers, office buildings, churches, warehouses, and industrial properties.
Commercial Raw Land Loans
Loans secured by raw (undeveloped) land are loans made to experienced developers for the acquisition of undeveloped land for future development. Citizens will make raw land loans only if it can be demonstrated that the borrower can support monthly payments that will payoff the loan in one year or less.
Commercial Loan Secured by Developed Lots
Citizens will make loans to experienced contractors for the purchase of developed lots. Developed lots are located in an approved development with all municipal services and public infrastructure completed. Contractors typically purchase developed lots prior to the construction of a commercial building or, if residential lots, prior to home construction.
Commercial Real Estate Construction Loans
Commercial real estate construction loans provide funds for construction or renovation. They are secured by a first mortgage on the property. The primary repayment source for this loan is the income generated by the property upon completion of the construction. Construction loans are made to experienced developers. Citizens generally requires that the project be 25% to 50% pre-leased or pre-sold. Once the project is completed, the construction loan can be converted to a permanent loan without the borrower having to re-apply for the end loan.
Residential Construction Loans (Pre-sold and Model Homes)
We offer one-to-four family construction loans to experienced residential home builders for the construction of pre-sold and model homes.
Land Development Loans
Land development loans are made to experienced developers to finance the infrastructure necessary for residential subdivisions or commercial sites. Citizens will generally require a project feasibility study or evidence of market demand for the property as well as verification that lot prices are competitive with comparable subdivisions in the surrounding market area. A percentage of pre-sales may be required prior to the disbursement of loan funds.
Term Loans
Term loans can be utilized for the purchase of machinery, equipment, technology systems upgrades, commercial vehicles and other assets needed to support business operations. Term loans may be secured by equipment, inventory, accounts receivable, vehicles, trucks or other business assets. The amount of the loan advanced is determined by the quality, liquidity and marketability of the collateral securing the loan. Repayment periods up to seven years are available.
Revolving Lines of Credit
Revolving lines of credit provide access to funds for a variety of short term, on-going business needs to supplement cash flow, take advantage of supplier discounts and finance seasonal operating expenses. The revolving line allows you to borrow, repay and re-borrow any number of times during the term of the line without reapplying. Lines of credit are offered for short terms and are typically reviewed annually.
Letters of Credit
A letter of credit is a negotiable instrument issued by Citizens Financial Bank to a third party on behalf of one of our business customers. The letter of credit may provide performance assurance regarding specific matters described in the letter. Since the third party is entitled to draw upon the letter of credit during its term, a letter of credit is analyzed and treated as a loan. Letters of Credit are either stand-by or direct pay, and may be used to enhance bond transactions.
Small Business Administration (SBA) Loan Programs
The United States Small Business Administration (SBA) was founded in 1953 and is a federal agency that assists small businesses in establishing, financing, managing and expanding their businesses. The SBA helps businesses obtain financing for the purchase or improvement of commercial and industrial real estate, the purchase of machinery, equipment and/or inventory, the expansion of a business, the enhancement of working capital and business acquisitions. Citizens participates in many SBA loan programs that provide small businesses more financing alternatives. Our lending professionals have the expertise and knowledge of the various loan programs offered through the SBA.
The SBA’s website,www.sba.gov†, is a excellent resource for a variety of business information such as SBA loan programs, preparing business plans, and business operations.
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