So every once in a while, we get a transaction that really is pretty straightforward and no exciting plot twist is involved. This environmental company out West was one of these projects, as there was really nothing I could think of that was out of the ordinary; other than that, this was a pretty big loan.
This environmental company’s main income source is providing SWPPs. Ok, what the heck is a SWPP? Funny, I thought the same thing, so I Googled it, and a SWPP is a Storm Water Pollution Prevention Plan and is needed for all new construction sites. It serves as a foundation to ensure that pollutants like chemicals, debris, and sediment from construction sites don’t end up in the drinking supply and also comply with environmental regulations.
They also have a fleet of environmentally friendly street sweepers that keep these construction sites compliant throughout the project. This particular company happens to be in a region of the United States that is growing rapidly and building. Needless to say, they are pretty busy.
How we helped structure this is with our funding source’s famous “Pari-Passu” loan program, where they take a borrowers 7A exposure limit and max them out at $5M. Then they add a second note that funded conventionally for additional capital. For your viewing pleasure, here is a breakdown of the capital stack below:
$7,325,000 Total Project Cost
- $4,500,000 SBA 7(a)
- $500,000 SBA Express LOC
- $1,575,000 Conventional Second (Pari-Passu)
- $750,000 Equity Injection
We Won't Waste Your Time
Let me be blunt. Our funding source structures deals to close and we don’t waste you or your client’s time. We want to get deals done and if we can’t, we let you know RIGHT AWAY and WHY!