mike fasulo's acc & 504 presentation

Overview

04/07/23 Company Confidential 1

Michael Fasulo, Vice President467 Southwest Dr., Jonesboro, AR 72401

mfasulo@arcapital.com888-726-9226 (office – toll free)

501-519-3442 (cell)

• Established in 1957

• Private non-profit lending corporation

• Dedicated to economic development

• Fully supported by the State of Arkansas

• Audited by the State Banking Department and SBA.

• Rely heavily of our banking partners to accomplish the mission of improving the economy of the state and preserving/creating jobs.

• Experienced staff well trained in SBA and USDA Lending.

Benefits of a SBA/USDA Loan to the Bank:- Allows for loans to be considered when collateral is an issue

- Allows financing for startup businesses

- Longer amortizations allows for better debt service coverage

- Refinancing can help stabilize a struggling business

- Reduces portfolio concentrations in industry segments

Benefits of a SBA/USDA Loan to the Borrower: - Allows for financing that otherwise would not be available.

- Provides true amortizing debt – no balloon payments.

- Longer amortization lowers the monthly payment

(Part of the Arkansas Corporation Group)

SBA 504 Loan

• An SBA loan is a direct loan issued to your customer in a subordinated position.

• Although it is a SBA loan you have no direct contact with the SBA.

• 6BCC is responsible for underwriting the SBA loan.

• Your permanent and interim loan are made as conventional bank loans.

Six Bridges Capital Corp.

• Current SBA 504 Loan Debentures in 6BCC’s Portfolio = $100 million

• # of Loans = 200

• Markets served by 6BCC:All of Arkansas

Fayette, Shelby & Tipton in Tennessee

Desoto, Marshall, Tate & Tunica in Mississippi

SBA 504 Loan

• Eligible Project assets include the following:• Real Estate• Equipment

• Real Estate and Equipment can be combined in one SBA 20-Year Debenture; lowering the overall payment to the Applicant.

• An Applicant must meet SBA Eligibility guidelines – but we are responsible to make the determination.

SBA 504 Loan Program

• A SBA 504 loan can be used for the following:• New construction• Purchase of leased property• Change of ownership• Refinance in conjunction with an expansion• Straight refinance not allowed at this time

• Debenture Amounts:• $150,000 to $5,500,000 Debenture• $300,000 to $13,000,0000+ Project Size

SBA 504 Loan

Existing Business – Multi Purpose Building

10% - Equity Injection

40% - SBA Debenture

50% - Bank Permanent First Mortgage

SBA 504 LoanExisting Business – Single Purpose Building

15% - Equity injection

35% - SBA Debenture

50% - Bank Permanent First Mortgage

SBA 504 Loan

New Business – Single Purpose Building

20% - Equity Injection

30% - SBA Debenture

50% - Bank Permanent First Mortgage

Current Debenture RatesInterest Rates:

20 Year = 5.19%

10 Year = 4.48%

Note: These are established at the time of the SBA Debenture funding and once set are for the full term of the loan

SBA Fees:

.5% on bank’s 50% Permanent First Mortgage

2.16% on the SBA’s Net Debenture

(Fees reduced by .5% for Veterans)

Note: All fees can be added to the project and repaid over the amortization period

Benefits of a 504 Loan to the Bank:- Improves Collateral Position - Loan to Value of 50%

- Provides ability to lend on equipment and have the added

protection of real estate collateral.

- SBA Debenture provides a long term fixed interest rate,

making the payment requirements more predictable.

- Longer amortizations allows for better debt service coverage

- Reduces portfolio concentrations in industry segments

Benefits of a 504 Loan to the Borrower: -Allows for down payments as low as 10%.

-Preserves capital that can be used in the business.

-Provides long term fixed interest rates.

-Provides true amortizing debt.

Learn more about our Loan Products at:

www.arcapital.com

Thank you!