An acquisition loan is used to purchase property using loan proceeds.

Acquisition & Development are loans to both purchase and develop real property to an enhanced state. Voucher control is normally set up to disperse loan proceeds with interest only paid on funds distributed. Loan-to-value is determined as to the enhanced value.

The term for a business acquisition loan will vary, depending on the type of business and what is being purchased. If the majority of the business purchase involves commercial real estate, then a 20 year term may be appropriate. If the business purchase is purely inventory and equipment, then only a 5 or 10 year term may be applied.

Interest rates are fixed and depend entirely on current market factors and the overall risk of the business and/or project. Generally you can finance up to 75% of the project cost on business acquisition loans. The remaining 25% of the project cost must be in the form of an equity contribution by the borrower (may be in the form of cash, investment or financing by an independent third party). Start Quotes