Beyond Working Capital: Packaging CRE Bridge Loans for Clients Who Outgrow SBA Limits
A guide for SBA and business-loan brokers who want to keep high-growth borrowers—and their commissions—inside the fold.
1 | Why Your “Graduated” Borrowers Still Need You
| Pain Point After SBA Success | What Happens Next | How You Can Step In |
| Hit $5 M 7(a) cap or $15 M 504 de-minimis cap | Expansion plans stall; seller won’t hold paper | Package 70–80 % LTC CRE bridge to close fast, then refinance into CMBS/agency |
| Use-of-funds restrictions (goodwill, working capital) | Borrower needs cash‐out to renovate or re-tenant | Bridge allows cash-out at closing—no SBA prohibition |
| Timing crunch—SBA appraisal & CDC approval = 90 days | Purchase contract demands 30 days | Private bridge funds in 7–14 days; you keep the client |
| Special-use collateral (hospitality, assisted living) | SBA liquidity & experience hurdles | Bridge lender underwrites on asset value + sponsor plan |
Take-away: If you stop at “Sorry, you’re maxed,” another broker (or hard-money player) will scoop your client—and future referrals.
2 | Bridge vs. SBA—Quick-Strike Comparables
| Metric | SBA 7(a) / 504 | Private CRE Bridge (LoanFunders.com) |
| Max LTC / LTV | 90 % LTC (7a) • 80–85 % LTC (504) | 60–80 % of “as-is” value |
| Loan Size | Up to $5 M (7a) • $15–20 M combined (504) | $1 M – $50 M (larger via syndication) |
| Close Speed | 45–90 days | 7–14 days |
| Term | 10–25 yrs amort | 12–24 mo interest-only |
| Recourse | Full or limited | Bad-boy only above $5 M |
| Eligible Uses | O/O real estate + equipment & WC | Acquisition • Refi • Cash-out • Cap-ex |
Bridge money costs more (11–12 % I/O today) but solves timing, leverage, and use-of-funds constraints—then exits into cheaper CMBS, life-co, or DSCR once stabilized.
3 | Packaging 101—What a Private Bridge Underwriter Expects
| Doc Set | Why It Matters | Broker Tip |
| PFS + SREO | Verifies liquidity & experience | Highlight equity from prior SBA deals—lenders like a growth story |
| Last 12–24 mo P&L | Demonstrates NOI trend | If asset is value-add, show pro-forma with rent comps |
| Rent Roll / Occupancy History | Confirms in-place cash flow | For hotels, send STR or STAR reports |
| Rough Credit & Background | Speeds sanction | Private lenders tolerate 650+ scores if equity strong |
| Appraisal / Broker Opinion (if available) | May waive full MAI to close faster | Order a BOV early—24-hr turnaround |
| Cap-Ex Budget & Timeline | Underpins LTC, exit value | Attach contractor bid in CSI format (our template) |
We’ll give you a fillable PDF that mirrors SBA’s 1919/413 forms—so you reuse the same data.
4 | Case Study — The SBA Graduate Who Needed an Extra $3 M
| Scenario | SBA Route (Blocked) | Bridge Solution |
| Borrower: 25-unit assisted-living operator | Maxed 504 at $14.8 M | – |
| Need: $8 M to acquire adjacent land & build memory-care wing | Use of funds ineligible; timeline too short | $6 M land + build loan (75 % LTC) funded in 12 days |
| Rate / Term: — | 11.25 % I/O • 18 mo | |
| Exit: — | DSCR perm @ 7.2 % once wing opens & leases up | |
| Broker Comp: — | 2 pts bridge + 1.5 pts DSCR = $135 K total |
Broker kept the client, won future refis, and added a marquee success story.
5 | Structuring the Exit—Your “Double Payday” Plan
- Bridge Close Today → earn up to 2 pts origination (outside SBA cap).
- Stabilization Milestones – 90 % occupancy or 1.20 DSCR.
- Perm Refi – CMBS, life-co, or DSCR; earn 1–1.5 pts again.
- Optional Preferred Equity – If LTC too tight, add 10 % gap funding; another 0.5–1 pt placement fee.
6 | How to Pitch Clients (Scripts)
“You’ve graduated from SBA—congrats! Your next phase needs speed and flexibility. We’ll use a 12-month bridge to grab the property now, fund upgrades, then lock long-term debt once income stabilizes. I’ll manage both closings so you focus on operations.”
Clients hear growth, certainty, and continuity.
7 | Compliance & License Notes
- Commercial Only → No RESPA; referral or origination fees allowed.
- State Regs → Some states need a simple commercial broker registration—often < $500 and online.
- Disclosure → Put fee on closing statement; have borrower initial.
- Anti-Steering → Offer at least two capital options (we’ll quote both bridge and pref-equity).
8 | Quick-Start Checklist for SBA Brokers
| Day | Task |
| 1 | Sign our commercial referral/broker agreement (e-signature) |
| 2 | Identify 2–3 clients at/near SBA cap |
| 3 | Request basic docs (PFS, T-12, purchase LOI) |
| 4 | Email package → term sheet in 24 hrs |
| 5–10 | Title, appraisal (restricted), insurance binder |
| 7–14 | Loan funds, you get paid |
Do this once—repeat for every growth-stage borrower.
Ready to Keep Clients After They Outgrow SBA?
Send the LOI, rent roll, and borrower résumé—LoanFunders.com will size the bridge, outline the refi take-out, and show your fee split in 24 hours.
Graduation shouldn’t mean goodbye. Close the gap, keep the client, grow your income.