Field notes
The parts nobody
explains
Not market commentary and not rate predictions. Four pieces on mechanics — the rules and structures that decide whether a deal works, written for the person signing the guarantee.
Latest
The occupancy rule decides more of your deal than the rate does
Fifty-one percent is not paperwork. It is the line between two entirely different lending markets, and most borrowers meet it after they have already made an offer.
Programme rules6 min read
Every conversation about owner-occupied commercial finance eventually arrives at one number, and it is not the interest rate. It is the share of the building your business will actually use. Under the SBA programmes, an existing building must be at least fifty…
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Everything else
Structure · 5 minYour balloon is not a detailA twenty-five year schedule with a seven-year maturity leaves most of the loan outstanding at the end. That number belongs on the first page of the term sheet, not the fourteenth.
Underwriting · 7 minThree tests size your loan. Only one of them is bindingLTV, debt service coverage and debt yield are computed independently, and the smallest answer wins. Knowing which one bound tells you exactly what to fix.
Cost of capital · 6 minWhat ten percent down actually costsLow equity is not free equity. Here is the honest comparison between a 504 stack and a conventional owner-user loan over a ten-year hold.Next bay
Tell us about the building
A twenty-minute conversation is usually enough to know whether a deal works, which programme fits, and what your equity actually supports.
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A demonstration number in the range reserved for fiction. It does not ring anywhere.