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At American Savings, FSB, we offer the products and assistance you're looking for on your commercial lending needs. We can help walk you through your options, navigate the lending process, and still be there for any questions that may arise later.
We offer the following commercial lending programs.
Mortgage Loans on Improved Property
Commercial real estate mortgage loans provide a long-term repayment option for acquiring new property, refinancing, or expanding an existing facility. Example properties financed might include:
- Multi-unit apartment buildings
- Retail centers
- Office buildings
- Industrial properties
For this type of commercial loan, American Savings, FSB will need to know that the property is either currently producing income or is projected to become income-producing. As a result, the type and marketability of property offered as collateral/security are important considerations. These loans require a thorough analysis of cash flow and any other special circumstances surrounding the loan request.
Commercial Construction Loans
Commercial construction loans are made to experienced developers to provide funds for construction or renovation of a commercial property. Secured by the first mortgage on the property, the primary source for this loan's repayment is to be the income generated by the property upon completion of the construction. American Savings, FSB may require the project be 25% to 50% pre-leased or pre-sold. As an additional convenience, 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
We offer one-to-four family construction loans to experienced residential homebuilders for the construction of pre-sold or model homes.
Undeveloped Land Loans
Undeveloped land loans are made to experienced developers for the acquisition of undeveloped land for future development. The borrower should be able to demonstrate the ability to make monthly payments that will payoff the loan in one year or less.
Land Development Loans
Land development loans are made to experienced developers to finance the infrastructure necessary for the further development of residential subdivisions or commercial sites. American Savings, FSB will 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. We may further require a specific percentage of pre-sales prior to the disbursement of loan funds.
Developed Lot Loans
These loans are made to experienced contractors for the purchase of developed lots. The lots must be located in a qualified development with all municipal services and public infrastructure completed. Developed lots will usually need to be purchased prior to the construction of any structure, whether it is commercial or residential.
Term loans are intended for the purchase of business assets needed to support business operations. Possible needs might include:
- Equipment or machinery
- Technology systems upgrades
- Commercial vehicles
These loans must be secured by existing equipment, inventory, accounts receivable, vehicles, or other business assets. The quality, liquidity and marketability of the collateral securing the loan will determine the amount of the loan advanced. Repayment periods are available up to seven years.
Revolving Lines of Credit
A revolving line of credit is a great resource for funds needed to address a variety of short term, on-going business needs. Lines of credit are offered for short terms and are typically reviewed annually. They allow you to borrow, repay and re-borrow funds any number of times during the term of the line without reapplying. Funds may be used a number of ways, and might include uses such as:
- To supplement cash flow
- To take advantage of supplier discounts
- To finance seasonal operating expenses
Letters of Credit
A letter of credit is issued by American Savings, FSB 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 allowed to draw upon the letter of credit during its term, it is treated as a loan. Letters of Credit are either stand-by or direct pay, and may be used to enhance bond transactions.
SBA Loan Programs
The Small Business Administration (SBA) is a federal agency that assists small businesses in establishing, financing, managing and expanding their businesses. The SBA helps businesses obtain financing for projects such as:
- 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
- business acquisitions
American Savings, FSB 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 an excellent resource for a variety of business information such as SBA loan programs, preparing business plans, and business operations.