Fountainhead

About Fountainhead

Fountainhead Commercial Capital is a non-bank commercial real estate and SBA lender focused on funding SBA 504, SBA 7(a) and < 65% LTV (loan-to-value) commercial real estate loans. Fountainhead’s programs are geared toward small business owners and its experience is unsurpassed in the commercial real estate and SBA lending space; having funded almost 6,000 loans totaling over $23 billion. Fountainhead’s founder Chris Hurn, is an industry veteran and a pioneer in establishing the SBA 504 program as the premier, high-LTV loan vehicle for small business owners to purchase real estate and build wealth.

From its website:

It is not an exaggeration to say that no other lender has as much experience with SBA 504, SBA 7(a) and low LTV conventional loans as Fountainhead. Our team, led by Founder/CEO Chris Hurn, has been involved in financing over $23 billion (yes, that’s with a “b”!) in total projects across all 50 states for owners of small and midsized businesses. In fact, we have worked with over 120 Certified Development Companies (CDC’s – the “eyes and ears” of the SBA on 504 loans).

The Fountainhead team has extensive experience structuring, approving, processing and closing loans, and understands the process from start to finish. As a privately owned and operated non-bank commercial lender, we share an entrepreneurial spirit with our Clients and Referral Sources. We understand the needs of small and mid-sized businesses and its owners, and we work closely with our Clients to provide the necessary capital to help them grow and prosper. With Fountainhead, you get the personalized service, responsiveness, and attention to detail that you deserve. We aren’t some big, faceless, slumbering bank treating you like just another number. Rather, we’ll treat you as fellow business owners working to help each other grow our part of the American economy. We’re willing to practice what we preach in that we own our commercial real estate. Nearly all our employees and owners participated in the purchase of our office building.

Loan Programs

Fountainhead is a direct lender specializing in the SBA 504, SBA 7(a) and < 65% LTV commercial real estate loans. Fountainhead’s primary programs, the SBA 504 and 7(a) programs, are guaranteed by the Small Business Administration which is a United States government agency. Fountainhead’s programs are skewed toward established businesses and conforming borrowers, but the company will consider startup loans and non-conforming borrowers with healthy businesses.

SBA 504 Loan Highlights / Guidelines

The SBA 504 program is used to purchase or refinance real estate occupied > 51% by the owner’s business. Funds can also be used for renovations, ground-up construction of commercial real estate and heavy equipment. An SBA 504 loan (in most cases) will be funded 50% by Fountainhead, up to 40% by the CDC, and the remaining 10%+ (if a purchase) will be contributed by you. Funds cannot be used for working capital, inventory, good will, business stock or intangibles.

  • Loans up to $20+ million considered nationwide
  • High-LTV loans up to 90%
  • Interest rates will range from 5% to 7%+
  • Fixed terms for 5, 7, 20 or even 30 years
  • Closing time-frames within 45 to 60 days
  • Minimum preferred credit score of 650
  • Minimum debt-service coverage of 1.15x to 1.25x
  • For-profit, non-publicly traded business are eligible
  • Business net worth cannot be > $15 million
  • Average net business income cannot be > $5 million
  • US citizens or legal permanent residents are eligible
  • Loans secured by medical offices or office facilities such as labs or clinics, office buildings, office condos, warehouse, industrial, child and adult daycare facilities, restaurants, flagged hotels, un-flagged hotels (case-by-case), auto-repair, assisted living facilities, and more

SBA 7(a) Loan Highlights / Guidelines

SBA 7(a) loans are also guaranteed by the Small Business Administration, but do not require the involvement of a CDC. Fountainhead funds the entire SBA 7(a) loan and in the event of default, the SBA will reimburse it up to 85% of the loan amount. High LTVs up to 90% are also available under the 7(a) program, and loan proceeds can be used for many more things than under the 504 program. Funds borrowed under the 7(a) program can be used for the purchase, refinance, renovation or ground-up construction of commercial real estate occupied > 51% by the owner’s business. Funds can also be used for non-real estate business needs such as working capital, equipment, inventory, partnership buyouts, debt consolidation, business or franchise purchases, leasehold improvements, expansions and even business startups.

  • Loans from $250,000 to $5 million considered nationwide
  • High-LTV loans up to 90%
  • Loan terms out to 25 years
  • Interest rates from Prime + 1.25% to Prime + 2.75%
  • Minimum debt-service coverage of 1.2x to 1.4x
  • Minimum preferred credit score of 640
  • Short or no prepayment penalty options
  • For-profit, non-publicly traded businesses are eligible
  • Business net worth cannot be > $15 million
  • Average net business income cannot be > $5 million
  • US citizens or legal permanent residents are eligible
  • Most business and commercial real estate types considered

Conventional Loan Highlights / Guidelines

Fountainhead’s conventional loans are made by the firm directly and are not guaranteed by the Small Business Administration. Fountainhead’s maximum LTV under this program is 65%, and because it doesn’t include the SBA, requires less paperwork and can close faster. This program is geared toward small business owners, but Fountainhead will also consider conventional loans secured by investment properties on a case-by-case basis. Obtaining a conventional loan through Fountainhead is a great alternative to SBA financing if you have reached the SBA financing limit, if you don’t meet all of the SBA requirements, or if you would like a competitively priced loan without all the paperwork or ongoing reporting an SBA loan will require.

  • Loans up to $20+ million considered nationwide
  • Purchase, refinance, renovation or cash-out transactions available
  • Maximum 65% LTV
  • Low interest rates comparable to SBA 504 financing
  • 24 hour pre-approvals and closings in 30 to 45 days
  • Fixed loan terms and amortizations out to 25 years
  • For-profit, non-publicly traded businesses are eligible
  • Minimum debt-service coverage ratio of 1.1x or greater
  • Ownership must generally be comprised of 51% U.S. citizens or legal permanent residents
  • Investment properties are considered under this program
  • Loans secured by medical offices or office facilities such as labs or clinics, office buildings, office condos, warehouse, industrial, child and adult daycare facilities, restaurants, flagged hotels, un-flagged hotels (case-by-case), auto-repair, assisted living facilities, and more
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The Loan Process

Fountainhead uses proprietary loan software called Pronto that enables loans to be approved within 2 hours, in fact the company guarantees it (assuming all criteria for approval is met and all information and documentation is provided correctly in accordance with the company’s instructions). Pronto can be used for Fountainhead’s SBA 504, SBA 7(a) or its conventional loan program, and can be accessed and completed right on its website. With the assistance of Pronto, Fountainhead is able to close SBA and conventional loans faster than its competitors.

The Application

Fountainhead’s application process is straightforward and varies only slightly among its three different programs. Although utilizing Pronto is the fastest and easiest way to get your loan reviewed for approval, Fountainhead’s team also invites you to call (866-289-1691) with your application details.

If you are looking for speed and a clear understanding of what it takes for approval, then utilizing Pronto is the best option and you can access it here. When using Pronto, first review the listed instructions and the checklist of documents required, then complete the required fields and upload completed documents where instructed. Fountainhead’s website is encrypted with a security certificate so you can feel confident transmitting information and documentation. Next, Pronto will prompt you to complete any remaining required fields and upload any additional required documents; if everything is completed correctly you can expect to have an answer from Fountainhead within 2 hours.

Underwriting & Closing

If approved, you will work hand-in-hand with Fountainhead’s experienced and helpful staff throughout the underwriting and closing process. Additional documentation will be requested to meet the company’s loan requirements, and third-party reports will be ordered if your loan includes real estate. SBA 504 and SBA 7(a) loans will include more paperwork than conventional loans, but Fountainhead’s staff will assist you with completing any documentation. The balance of the loan process is customary and if third-party reports, title and final underwriting documentation are satisfactory, your loan will close and fund.

Pros

  • Fountainhead’s team has funded almost 6,000 loans totaling over $23 billion. This confirms you will be working with an experienced and highly capable staff to help navigate you through what can be a cumbersome process.
  • Fountainhead offers low rates, fixed terms and long amortizations compared to its competition.
  • There are very few lenders that offer business startup or ground-up construction financing but Fountainhead will.
  • Pronto, Fountainhead’s proprietary application software enables you to obtain a loan approval within 2-hours.
  • Fountainhead’s CEO, Chris Hurn, is an industry veteran who has helped expand and develop the SBA 504 program over the last 20 years to make it more accessible to small business owners. Chris has even written a book about SBA 504 loans and testified in front of the United States Senate Committee on Small Business and Entrepreneurship in March of 2012.

Cons

  • Fountainhead focuses on conforming borrowers and businesses that meet certain verifiable debt-service minimum requirements.
  • If you have credit below 640 or cannot provide tax returns then Fountainhead will likely not be the best fit for you (a stated income real estate loan may work better).
  • LTVs of 65% or less are available through Fountainhead’s conventional loan program, so if you need a high-LTV but do not qualify for its SBA financing, then Fountainhead may not work for you.

Why Fountainhead is the Best

Fountainhead’s team has funded almost $23 billion of commercial real estate and SBA loans, and its founder is one of the industry’s biggest advocates for small businesses and SBA 504 financing. The level of experience and professionalism possessed by Fountainhead is essential when you are seeking a long-term partner to help you obtain affordable capital, grow your business and create wealth. Pronto, Fountainhead’s proprietary software enables 2-hour loan approvals for eligible transactions; significantly expediting the SBA loan process. Fountainhead not only offers three different ways to finance your business, but also provides difficult to locate financing such as business startup loans, business purchase financing and ground-up construction financing.

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