My New Blog

If Northern California hopes to pursue a 21st Century model of smart local planning, it will need the help of smart civic activists.

These watchdogs will need to police leapfrog development and reward those who build within the region's core. They will need to support projects designed around transit corridors and existing neighborhoods, and make life tough for developers who propose the same old car-dependent subdivisions that dominated the latter half of the last century.

Several Northern California area developers are getting the message. County and State governments are increasingly unable to provide low cost infrastructure to these far flung development projects, thereby increasing the price of the finished homes. We have seen fire sale bargins and trips to the Super Bowl just for buying the house at the builder's cost!

Affordability of housing in Northern California is far superior to the coastal communities, most people would agree. To keep the cost of housing within reach of most of our citizen's  salaries, government workers, police, fire, utility workers, etc., we need more citizen activists that will stand up for their communities and demand smart growth principals for their neighborhoods. Leaders need to have the courage to teardown and rebuild rotting edifices that are unsafe and outdated. Putting a coat of paint on a building that has outlasted its utility is throwing good money after bad  that will only prolong the futility. Trying to keep a junker running throws more pollution into the eco system.

It is interesting to note that the size of homes these days is harkening back to the size of homes our grandparents lived in here in Northern California. Eight hundred (800!) square feet with a postage stamp back yard and a big front porch to enjoy the shade of the Modesto Ash in the front yard! Makes you wonder.

Until next time,

December 5, 2007 we attended a presentation from one of our lenders about the intricate dance called "Underwriting the SBA Borrower".

SBA Highlights as compared to Stated Income lenders:

• Programs Available: SBA-7a, Cal Cap, SBA 504, Business & Industry (Rural Areas) Loans and Conventional financing.
• Maximum Loan Size $2 Million for 7-a
• No Balloon Payments
• Flexible LTV's based off program guidelines on a case by case basis
• 30 to 60 day funding time
• Loan Terms - 7 to 25 years
• Fast Approvals - 24 hours for Letter of Interest and 5 to 10 day conditional approval underwriting of a complete, fully documented package.

Eligible Property Types:

• Owner User Commercial
• Retail Buildings
• Medical Office Buildings - Veterinarian, Dentist
• Care Homes
• Hotel/Motel
• Restaurant/ Bars
• Professional Office Building
• Car Wash/Auto Repair
• Warehouses
• Office Condominium
• Metal Buildings/Special Use

Ineligible Property Types:

• Non-Profit
• Business engaged in lending
• Passive holder of real estate
• Life Insurance companies
• Businesses in foreign company or owned by aliens (Non Citizen)
• Business selling through a pyramid plan
• Business engaged in gambling
• Borrowers with prior losses to the government (default SBA loan, student loan, VA loan, FHA loan, etc.)
• Speculation
• Illegal businesses
• Business which restricts patonage (discrimination)
• Government owned entities
• Business engagen in promoting religion
• Cooperatives
• Business engaged in loan packaging
• Business owned by persons of poor character
• Business providing pornography or sexual material
• Political or lobbying activities

Business is compared to other businesses listed in the NAICS codes found on SBA's website - SBA.gov and Robert Morris Associates (RMA)/ Ratio Analysis for like kind businesses.

Collateral - Typical Loan To Value Assigned:

Commercial Real Estate        85%

Raw Land - 1st Position        50%

Raw Land - 2nd Position      30%

Machinery and Equipment - New  50%

Machinery and Equipment - Used 30%

Furniture and Fixtures - New     10%

Personal Residence/Rental Property    85%

Certificate of Deposit (Cash Secured)    100%

The workshop was approximately 3 hours in length, so we decided to post just a few of the notes we took on the subject matter. We have several SBA underwriters assigned to our office, so we can get a question answered quickly.

If you would like to comment on your experiences with raising money for your business enterprise using SBA finanicng, drop us a line!

This evening, we will be participating in a Mayoral Town Hall Meeting sponsored by Sacramento Mayor Heather Fargo. The meeting will take place on Tuesday, November 27, 2007 at The Antioch Family Life Center, 7650 Amherst Street, Sacramento, CA 95832. The meeting starts at 6:30, however, we encourage you to come early to network with other interested parties.

Tom Ingle, Senior Loan Consultant with American Investor Services will be a panelist discussing Private Trust Deed Investing. Other panelists will include a bankruptcy attorney, a credit protection specialist, foreclosure prevention specialists and other consumer protection advocates.

Learn how you can protect your home from foreclosure and what to do when you do get into trouble with your lender.

For more information, call Tom Ingle, Senior Loan Consultant, 916 449 9979

We have added Asset Based Lending Products to our lineup!

1. Accounts Receivable Factoring - National and International
2. Inventory Financing - Including Crop Loans
3. Equipment Leasing - Rolling Stock, Medical, Second Chance Programs
4. Vendor Financing Programs - Financing for your customers
5. Credit Card Advances to $250,000
6. Venture Capital from $250,000 for innovative companies going vertical.
7. Joint Venture funds for established/profitable real estate companies.
8. Fee Based: SBA Packaging; Business Plan Preparation; Reg D Statements; Strategic Planning Consultations.
9. We buy Seller Carryback 1st Deeds of Trust - Call for quote.

American Investor Services has upgraded our ability to analyze business loan requests by establishing a strategic alliance with Merchant Capital Bancorp and Intergrated Business Technologies.

The synergies provided by this alliance offers our clients a sophisticated and technologically advanced method to present their company's story and financial history in a format easily read by financial professionals.

We welcome your comments about problems you have encountered in getting approved for financing for your business. Solutions and Alternative Choices will be compiled into a FAQ page on our site.