When the economic downturn happened in 2008 and 2009, lending options dried up for many companies that needed commercial real estate borrowing solutions to save or expand their businesses. But now, new options are being created that are helping create jobs and economic growth.
Secondary market lending, where banks or mortgage brokers will partner with other lenders to provide loans outside of their usual lending parameters, are increasing in popularity — and with many of them backed by the Federal Government, they provide a safer borrowing option for everyone involved.
AVANA Capital, a Glendale, Arizona-based commercial real estate lender, is one of a handful of companies entering into secondary market lending with a nationwide product offering of loan products for use by banks and commercial mortgage brokers.
AVANA Capital plans on offering a broad range of loans, enabling borrowers that are potentially just outside of existing lending parameters to qualify. And, the company can complete transactions in all 50 states, providing a truly nationwide reach.
AVANA Capital’s secondary market lending also includes a broad base of industries and property uses, providing banks and brokers with more options to meet their clients’ needs.
Sundip Patel, Founder and Managing Partner of AVANA Capital, said the firm’s success in using Small Business Administration and U.S. Department of Agriculture loans for small- to medium-sized businesses helped them recognize the potential for secondary market lending.
“We’ve had a great deal of success in using these tools to help preserve and create jobs and benefit our borrowers,” Patel said. “So when we looked at the marketplace to see how we could further enhance our product offerings, we saw some real opportunities in the secondary markets to bring these beneficial lending tools to banks and brokers. Their customers can benefit greatly in situations where they may not have had other options, and these banks and brokers are rewarded with the generation of new income.”
AVANA Capital has begun offering SBA 504 loans on both First Trust Deeds and Second Trust Deeds to enter into the marketplace. The company’s goal is to expand its presence in the secondary markets dramatically over the course of the next year.
“We want to provide lenders and brokers with the opportunity to serve borrowers they otherwise might not be able to serve because they fall just outside of the lender’s existing parameters or are in the wrong industry,” Patel said. “By doing so, we believe we can help a broad spectrum of businesses while creating a positive result for the banks and brokers as well.”
AVANA Capital provides a variety of loan products, such as SBA 7(a), SBA 504, and USDA B&I loans, and also allows for construction and tenant improvements. With AVANA Capital’s ability to also offer interim loans as well as participate with other lenders, more loans are originated and funded for companies looking to grow. The firm’s ability to participate with other lenders allows it to help banks get loans done, even if they have legal lending limitations or concentration issues, especially in special purpose asset types such as Hotels and Assisted Living Facilities. For more information on AVANA Capital and its products, visit www.avanacapital.com.
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