Link Funding, Inc.

Success Stories

Link Funding has assisted banks with access to the SBA and USDA guaranteed programs in a variety of scenarios.  Some are just "plain vanilla" loans, while others present more challenges.  Here are some of our many success stories.

USING THE SBA PROGRAM FOR REO PORTFOLIO PROPERTY

A bank had taken back a hotel property after the borrower defaulted on his conventional loan.  The bank had been operating the property through a receiver while it marketed the property.  A qualified buyer was located.  With Link's guidance about the specialized SBA program requirements for this type of loan,  the bank made an acquisition loan to the purchaser and obtained a 75% SBA loan guarantee.  In addition to solving a significant problem with its portfolio and obtaining the credit enhancement of the guarantee, the bank received premium income of 7% of the guaranteed portion, plus 1% continuing fees for loan servicing.

EXTENDING ADDITIONAL CREDIT TO EXISTING CUSTOMERS

A bank client had recently started a new business and sought additional capital for expansion.  A conventional loan would have been outside the bank's lending parameters but the bank thought that the loan made sense.  So it turned to Link to help structure the deal with an SBA guarantee.  This enabled the bank to retain a solid existing customer whose business will continue its growth path with the additional capital.

MAKING A LOAN TO AN EXISTING CUSTOMER ALREADY AT THE BANK'S CREDIT LIMITS

A successful group which specialized in building and leasing property to a national retail chain approached one of our bank clients to provide funding for the construction of a new unit.   The bank already had total loans to the group on its books that were close to the bank's credit limits.  With the use of a USDA B&I loan, the bank was able to make the loan, as only the unguaranteed 20% of the loan counted against the lending limit.  A valuable client was retained, the bank received a guarantee commencing with the construction process, as well as a significant premium when the final funding occurred.

REFINANCING "SAME INSTITUTION DEBT"

A bank client had a multi-store restaurant franchisee with a very successful track record.  The bank had a real estate loan and equipment loan on its books for one of the customer's  locations.  The bank had renewed these notes several times for one-year or two-year terms.  With Link's help, the bank was able to restructure these loans using the SBA guarantee program to provide the customer with fuller-amortizing, longer-term notes that provided improved cash flow to the borrower.  The bank received premium and servicing income as well as kudos from a happy customer.



To talk about how your institution can take advantage of these programs, contact us and we can show you how simple and profitable these lending programs can be.