PMC Commercial Trust is a subsidiary of CIM Commercial Trust Corporation, a publicly traded company based in Dallas, Texas. This real estate-based lender provides SBA 7(a) loans to small businesses nationwide. PMC is an SBA-preferred lender and has one of the few SBLC licenses issued by the SBA to nonbank lenders, which gives it more flexibility in its lending decisions. It provides funds more slowly than most lenders, though.
The minimum for PMC's SBA 7(a) loans is $300,000, which is among the highest minimums in our review, and a maximum of $5 million, as is allowed by the SBA. Businesses that need smaller loans should look elsewhere. PMC prefers working with businesses that need loans for owner-occupied real estate projects, such as for purchasing or constructing a new building or renovating an existing structure. Term lengths are between seven and 10 years for loans used as working capital or to make leasehold improvements, and between 20 and 25 years for loans used for owner-occupied real estate projects.
Like all the lenders we reviewed, PMC considers both your business and personal credit as part of your loan application and requires all parties owning 20% or more of the business to provide a personal guarantee. It requires you to secure your loan with real estate as collateral and, in most cases, also requires you to have sufficient life insurance so that if you die, the loan will be repaid in full.
PMC has some of the lowest interest rates we found on SBA 7(a) loans, charging the prime rate plus 1% to 2.75%. Interest rates may be either fixed or variable, depending on the specifics of your loan. It requires a down payment between 15% and 25%, which is average compared with its competitors. The debt service coverage ratio requirement varies, depending on the health of your business and the project your loan will fund, though the lender expects you to have sufficient income to meet your obligations.
As is standard with SBA 7(a) business financing, you pay a guarantee fee on the portion of the loan that's backed by the SBA. You also pay closing costs and a packaging fee. PMC doesn't charge an application fee, though. It posts basic information about its rates and fees on its website. You can't apply online for small business funding from this lender, but you can download an application and several other forms from its website.
After your application is approved, it takes PMC up to 55 days to transfer the loan proceeds to you. Although not the slowest time frame in our review, it’s a longer delay than average, so you'll need to plan ahead and allot ample time if you need the money by a certain date to close a real estate purchase or begin construction on your building.
PMC Commercial Trust is a good option for small businesses that want a larger SBA 7(a) loan for use on real estate-based projects. It has some of the best interest rates, and it works with small businesses across the country. Although it doesn't charge an application fee, it does charge a packaging fee. After your loan is approved, it can take up to 55 days for this lender to fund your small business loan.
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