Why USAF Group? Win Business… Maximize Profits
Sell to the End Investor direct and eliminate Intermediaries.
Take advantage of the buying and lending experience to navigate the maze and structure the loan to win the business away from your competition.
Solve concentration and legal lending limit problems, offer additional products to your customers and grow your bottom line with out-of-market business opportunities without additional capital.
We prepare all the paperwork relating to settlements making execution of trades a breeze.
We make it operationally convenient by typically purchasing the entire loan in one assignment.
We have traditionally been active in the secondary market since 1986 focusing on purchases of commercial loans guaranteed by the USDA and SBA.
Eligible Businesses fall into two categories:
1. Loans to Essential Businesses in Rural Areas and
2. Loans to Businesses involved in or catering to the Agriculture Sector, which can be located in rural or urban areas.
Examples of Businesses considered Essential to Rural Areas:
1. HealthCare—Hospitals, Doctors Offices, Urgent Care/Medical Centers or similar businesses
2. Eldercare-Nursing Homes, Assisted Living, Senior Living or similar businesses
3. Housing—Multi-Family, Student, Military, Rural Worker or similar businesses
4. Community Facilities—Schools, Infrastructure, Water and Waste, Funeral Homes, Power Generation, Telecommunications, or similar businesses
Examples of Businesses involved in or catering to the Agriculture Sector:
1. Agriculture Production: Vineyards, Beef Cattle Ranching/Farming, Dairy, Poultry, Timber Tracts, Vegetable/Fruit or similar businesses
2. Agriculture Manufacturing: Animal Food, Frozen Food Manufacturing, Flour Milling, Soybean Processing or similar businesses
3. Healthcare, Production and Distribution: Healthcare related Manufacturing, Fruit/Meat/Seafood and Grocery Wholesalers, Poultry/Meat/Seafood Processing, Breweries, Wineries, Distilleries, Fertilizers/Chemicals Manufacturing, Animal Healthcare, Consumer Foods, Food Packaging, companies catering to exports or similar businesses.
4. Businesses Involved in or catering to Agriculture Sector: Refrigerated/General Warehousing and Storage, Supermarkets/Grocery Stores, Mini Warehouses, Baked Goods, Machinery and Equipment manufacturers and dealers.
What we look for in Eligible Businesses:
Territory: We buy loans Nationwide including U.S. territories.
Debt Service Coverage: Loans to Existing “eligible” Businesses must demonstrate a current global DSC not less than 1.20x.
Term: Will depend on the economic life of collateral. Loans can have a 25-30 year amortization (no balloons).
Loan Size: Our Preferred Loan Size is $5 Million – $20 Million and our minimum loan size is $2 Million.
Loan to Value: Up to 90% on SBA loans and up to 80% on USDA guaranteed loans.
Exclusions: USDA loans must be in rural areas below 50,000 population. SBA loans must be an owner occupied business run for profit.
Customer Relationships: Lenders selling loans to us can continue to maintain the depository and other customer relationships. Sellers are about 50% Wholesale, banks for whom we originate and underwrite to buy back from and 50% Retail, banks from whom we buy back from after re-underwriting the loan they are selling.
Advantages of the Program: Ability to sell obviates need to balance sheet the loan. This minimizes capital set aside requirements arising from the additional volume of business. In addition to liquidity, Lenders can make premium income depending on the rate, whilst retaining client and depository relationship. Additional product line offering to customers.
Referrals from Banks, CDC’s, brokers and service providers are welcome.
For further details contact:
CEO & President of Thomas USAF Group, LLC