©2018 Angel Oak Companies. All rights reserved. ©2018 Cherrywood Mortgage, LLC. All rights reserved. ©2018 Cherrywood Mortgage Corporation. All rights reserved. Cherrywood Mortgage
Corporation is a broker licensed corporation in California, License 02071375. Information is intended for Mortgage Professionals only and not intended for consumer use as de;ned by Section
1026.2 of Regulation Z, which implements the Truth-In-Lending Act. Distribution to the general public is prohibited. Loan programs and rates described herein are subject to change without
notice and are subject to Cherrywood Mortgage, LLC’s underwriting guidelines and all applicable federal and state rules and regulations. Lending not available in the following states: AK, ND, SD.
Other conditions may apply. Cherrywood Mortgage, LLC broker approval required prior to loan funding.
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We Listen. We Advise. We Fund.
At our core, Cherrywood Mortgage, LLC believes that property owners and investors are
underserved by narrow and in;exible banking guidelines. We designed our programs with this
in mind, o;ering more ;exibility than traditional lending sources without charging the high
rates a hard money lender would charge. We understand that every loan has a unique story.
We are ready to help you guide your borrower into a program that ;ts their needs.
• Loan amounts from $75,000 to $5,000,000
• Rates starting in low 6’s
• No tax return and bank statement programs available
• Multifamily, mixed-use, o;ce, retail, light industrial,
self-storage, mobile home parks and 1-4 unit NOO
• LTV’s up to 80%
• FICOs below 650 (case-by-case)
• Foreign nationals at reduced LTV’s
• Fully amortizing terms up to 30 years
• 1-2% YSP available
• Broker comp per fee arrangement,
no caps from lender
Because the conventional lender’s participation, as measured by the loan-to-value
ratio, will be lower than it would be with
a more traditional financing deal, the
CDC 504 loan structure enables many
lenders to offer better rates and terms.
In many cases, the CDC 504 structure
helps businesses secure financing for
projects that otherwise may not have
been approved. A separate construction loan, for example, is more likely
to get approved when the permanent
financing through a CDC 504 loan is
It is worth noting that a CDC 504 loan
can be used to construct new buildings. With many construction projects,
however, the bank typically provides
the construction loan, and the CDC 504
loan serves as the follow-on permanent
financing. The CDC 504 loan funds
when construction is completed.
Now that the advantages and structure of the CDC 504 program are clear,
we need to recognize how many of your
clients can benefit from this program.
A common misconception is that the
CDC 504 loan is just for small businesses.
While it’s technically a “small-business”
program, the generous loan amounts, as
well as the net-worth and income limits,
make it available to most businesses.
Current SBA guidelines allow a bus-
iness seeking financing to have a
tangible net worth up to $15 million
and net after-tax profits of up to $5
million, on average, over the two previous years. Most for-profit businesses
n n n
Construction loans are often time-
consuming and complex. They require
thorough construction notes, such as
details related to the builder, a detailed
project timeline, floor plans, construc-
tion drawings, and costs of materials
and labor. CDCs can help commercial
mortgage brokers and their clients
navigate through the entire process,
handling all communication with
Many small-business owners are
unaware that there is an affordable
financing option that allows them to
construct a home for their business.
Set yourself apart from the competition by introducing your clients to this
valuable financing vehicle. n
“In many cases, the CDC 504
structure helps businesses
secure financing for projects
that otherwise may not have
Kurt Chambliss is executive vice president
of TMC Financing, a certified development
company (CDC) that has provided real
estate financing in California and Nevada
for more than 35 years. TMC offers commercial real estate buyers up to 90 percent
financing by utilizing the SBA’s CDC/504
loan program. TMC is the top-ranked CDC
in Northern California and has been among
the nation’s top-five CDCs for the past two
decades, providing more than $9 billion in
financing for more than 5,000 businesses.
Reach Chambliss at (415) 989-8855 or