Hi there 
My name is Sam Mecham, and I’m an SBA Loan Officer with Mountain America Credit Union (MACU). We are a regional Credit Union supporting Arizona, Utah, Nevada, Idaho, and Montana. We offer SBA (7a & 504) and conventional lending solutions for commercial real estate needs, including purchases, refinances, and construction. We have a well oiled machine over here that can close in 45-60 days. We portfolio all of our loans and our pricing is competitive. We are a cash flow lender first and foremost, so we look for the primary and global debt service (DSCR) to be at or above 1.25. That being said, for a strong and experienced borrower we will consider projections.
In addition to commercial real estate, we can also leverage SBA loans to finance business acquisitions and expansions, partner buyouts and buy-in’s, large equipment, and other working capital needs.
If you have any questions, I love to talk about credit; please call/text, or send an email.
623.309.6451
[email protected]
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Sam sounds like you have a solid platform. Do you work with brokers who bring you SBA deals?
Would be great to connect if you’re open to co-marketing or referrals.
Thanks for sharing this, Sam. Quick question, for someone just starting out with a small business acquisition, how flexible are SBA 7a loans on collateral? I’ve heard different things depending on the lender.
Hello! Sorry for the delayed reply - the alert went to my junk folder. I am always open to working with brokers. Feel free to reach out and we can chat about what that relationship would look like.
Hi! The SBA SOP (current version can be found here: [SOP 50.10.8] (Lender and Development Company Loan Programs | U.S. Small Business Administration) is the baseline credit policy that every lender starts with, and then we each overlay our own credit policy. For this reason, every lender can (and probably will) have a slightly different perspective on how much collateral is needed.
On page 133 of the SOP in Section C: Credit Standards → 3: Collateral → c. Adequacy of Collateral → “ii. A loan request is not to be declined solely on the basis of inadequate collateral. In fact, one of the primary reasons Lenders use the SBA-guaranteed program is for those Applicants that demonstrate repayment ability but lack adequate collateral to repay the loan in full in the event of default. However, SBA does not permit its guaranty to be a substitute for available collateral.”
I would recommend reviewing this section of the SOP if you have questions about what collateral the SBA will require.
Some lenders are willing to finance a big air ball if the underlying cash flow and guarantor experience is substantial enough, but they will price the risk accordingly. At Mountain America, we take a more conservative approach to building our portfolio and seek to have most of our loans be secured with real estate, but the reduced risk is reflected in our pricing.
Please feel free to reach out - always happy to chat about your project and help you decide the best path forward.
