News in Brief from Eastern Union, CBRE, Luxury Mortgage Corp.
Firms Can Pre-Apply Now for PPP Loans via Eastern Union
With a demand for a second round of federal Paycheck Protection Program (PPP) loans that will inevitably exceed supply, real estate finance company Eastern Union, Brooklyn, is urging pandemic-wracked small businesses nationwide to get a head start on the loan approval timetable by immediately pre-applying for the program.
Eastern Union said it helped more than 10,000 small businesses gain loan approval during the first round of PPP funding earlier this year. Faced with applications from millions of loan seekers, program funds were depleted within weeks of its April launch.
“With millions of businesses applying for a finite pool of loan money on a first-come-first-served basis, only the swiftest have the chance to succeed,” said Eastern Union President Ira Zlotowitz.
Businesses can register through Eastern Union by visiting https://easternunion.com/ppp.
PPP loans are made available through the U.S. Small Business Administration. Pursuant to SBA rules, Eastern Union arranges loan registrations at no charge to applicants.
“Businesses should start the process immediately, even if all their financial documents aren’t ready,” Zlotowitz said. He said loan seekers could then resume the application process at a later time. Applicants will receive timely updates that will help ensure that their application have been properly submitted to the SBA.
Funded at $284 billion, the second round of PPP loans targets firms with 300 employees or less, unlike the initial round’s 500-employee threshold. Companies who applied during the first round and spent the funds they received may be eligible to take out a second loan if they can demonstrate a decline in quarterly revenue. While first-round loans were capped at $10 million, this round’s limit is $2 million. The program is still largely designed to cover 2.5 months of average payroll expenses, though some qualifying businesses such as restaurants, food service companies and hotels may receive up to 3.5 months of average payroll expenses.
CBRE Launches CBRE Loan Flow
CBRE, Los Angeles, launched CBRE Loan Flow, an online mortgage experience that provides quick and accurate rates for refinancing or buying a property.
CBRE said borrowers answer a few basic questions about their property and CBRE Loan Flow provides comparative loan options. CBRE Loan Flow helps borrowers navigate the entire loan process, from application to closing, making it easy to securely share documents, communicate with their broker and track the status of a loan.
“Getting a commercial or multifamily loan doesn’t have to be difficult,” said Brian Stoffers, CMB, Global President of Debt & Structured Finance for CBRE. “CBRE Loan Flow does much of the heavy lifting by providing customized quotes, assisting in lender qualification and selection and getting the loan closed; it simplifies the process considerably.”
CBRE Loan Flow works across all property types and loan sizes. It will initially target borrowers seeking a $1 million to $8 million loan to purchase or refinance a multifamily property.
Key Features:
–Real-time pricing engine suggests the best loan options for a borrower’s deals. Borrowers can easily compare options and view details on rate, payment and other loan features.
–Guides borrowers through the entire loan process via a digital portal. While a CBRE professional will contact the borrower once they have created an account, the borrower can actively move their loan request through each step.
–Delivers unmatched loan processing times that provide a competitive advantage when acquiring or refinancing a property.
Luxury Mortgage Corp. Releases Product Enhancements for Property Investors
Luxury Mortgage Corp.’s new Simple Access Investor Cash flow loan offers an option for property investors to qualify based on the subject property’s rental income without an income documentation requirement. Loan highlights include: credit scores down to 640, purchase or rate and term refinance, maximum LTV 80%, cash-out max LTV 75%, no DTI developed, minimum DSCR: .75, interest-only available, LLCs, partnerships and corporations are eligible vesting types, up to 15 financed properties allowed, vacant Properties: use 100% of market rents and cash out proceeds may be used for reserves (Max LTV 65%).
