ValueXpress Arranges Rate Reduction for Hair Salon in Long Island, NY

ValueXpress has arranged an SBA 504 loan transaction to refinance a conventional owner-occupied real estate loan held by its affiliate, Country Bank.  The existing $990,000 loan carries an interest rate in excess of 8% and will be refinanced with a new first mortgage from Country Bank in the mid-6% area for approximately $550,000; the SBA will provide a second mortgage through its 504 program for approximately $440,000 at a rate of approximately 5.10%.  The blended interest rate is expected to be less than 5.75%.

The property is a 5,000-square-foot single-story retail building located in the Hempstead area of Long Island, NY.  The owner operates a hair salon, including coloring, styling, hair extensions and bridal services.  In addition, ancillary services, including facials, massages, waxing and nail treatments, are offered.

“We are always trying to help our clients obtain lower-cost financing from available programs,” said Jim Brett, senior underwriter at ValueXpress. “The SBA 504 program is extremely attractive rate- and term-wise and we convinced Country Bank that its reduced exposure on the transaction — by lowering its loan-to-value from about 80% to 50% — was an excellent trade-off to reducing the bank’s rate on the first mortgage position from over 8% to the mid-6% area,” said Brett.

The borrower is expected to save over $600,000 in interest charges over the life of the new loan.

This entry was posted in Michael D. Sneden, News & Recent Closings, SBA, SBA 504, SBA Loans, Valuexpress and tagged , , , , , . Bookmark the permalink.

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