Why Choose PMC?

Frequently Asked Questions


  • WHY CHOOSE PMC AS YOUR LENDER?

    We humbly believe that we have a unique combination of loan products that you simply can’t find elsewhere. Our concern is the same as yours: that your business be successful and that your loan closes quickly! We are committed to a program of customer service and personal attention. Our Senior Vice President of Lending, Laurie Ivy, is available to handle any concerns.

  • WHO IS PMC?

    PMC Commercial Trust makes equity and debt investments in stabilized real estate and real estate-related assets, and is a commercial real estate lender who has been making loans since 1979. We are a wholly owned subsidiary of a public company, CIM Commercial Trust Corporation, listed on NASDAQ, ticker symbol CMCT, headquartered in Dallas, Texas.  We have provided thousands of loans to businesses throughout the United States. As a nationwide direct lender, we originate loans both conventionally and through utilization of the Small Business Administration 7(a) government lending program. Based on our experience and track record, we have earned the distinction of being an SBA Preferred Lender, the highest achievable. This designation gives us the authority to quickly approve and close loans while providing personalized service to borrowers

  • HOW DOES BANK FINANCING COMPARE TO PMC’S FINANCING?

    Bank financing may be useful in providing financing for short term debt such as accounts receivable and working capital. Most bank loans for long-term assets are “mini-perms” which means that the term may be five years with a longer amortization. At the end of the five year term, the bank may renew the loan (or maybe not renew it at all, based upon its own set of problems or other agendas). At a minimum, if it is renewed, the interest rate at that time may need to be renegotiated. In addition, there may be renewal fees and costs for new environmental reports, appraisals, etc. These five year “balloons”, as they are also called, may happen at the worst possible time, such as during an economic slow-down or a time of personal financial hardship. Therefore care should be taken in assuming a bank loan will always remain in place.

    Banks also typically require an ongoing debt coverage ratio minimum as well as minimum appraised values on real estate. Consequently, decreases in profitability or real estate values can trigger a default of the bank’s loan covenants despite a good payment history.

    Today, some banks may have their portfolio full of problem residential or commercial loans and be unable to assist you because of liquidity issues or a shrinking credit box. If they can make the loan, they may require that you keep your deposits at their bank, thereby potentially limiting your ability to use your capital to the fullest.

    PMC loans are long-term loans and do not have typical bank performance covenants. We are not a bank so you may choose where to deposit your funds. Once a PMC loan is closed, it’s “done” and that’s the end of the uncertainties and future fees!

  • WHAT ARE YOUR LOAN SIZES AND TERMS?

    SBA 7(a) loans may not exceed $5mm per statute. PMC’s minimum 7a loan is $300,000, although some lenders make much smaller loans. 504 maximums are $5mm for the second lien (It can be increased when the project meets certain public policy goals, eg. Rural development or minority ownership, for example). Therefore, the 504 project costs can be higher.

    For real estate loans the term may be 20-25 years. For working capital and leasehold loans, the terms will be between 7-10 years. Rates are variable, based on prime (7a) or libor (conventional). Some conventional loan rates may be fixed. The second liens for the 504 program are fixed for 10 or 20 years, depending upon the debenture sale rate once the project is complete. Click here for more information.

  • WHAT IS THE SBA & THE 7(a) LOAN PROGRAM?

    The U.S. Small Business Administration (SBA) was established in 1953 to help Americans start, build, and grow businesses. It is an independent agency of the federal government whose mission is to aid, counsel, and protect the interests of small businesses. Small business is the backbone of the U.S. economy providing the lion’s share of new jobs, half the gross domestic product and many new technologies SBA is commissioned to assist in maintaining the economic strength and importance of this sector of our economy.

    SBA does not make loans itself, but guarantees 75-85% of a loan made by a Bank, Credit Union or Small Business Lending Company (SBLC) through its flagship loan program, called 7(a) program (from the section of the Small Business Act).

    SBA issued 12 SBLC licenses and PMC’s subsidiary, First Western SBLC, Inc.,owns one. First Western is a nationwide Preferred Lender through the SBA which means our years of experience and understanding of the program allows the process to go more quickly.

    For more information, call us or visit www.sba.gov.

  • WHAT IS THE SBA 504 LOAN PROGRAM?

    The SBA 504 loan program is designed for fixed asset purchases or construction. Under this program, the borrower must inject a minimum of 10% down of eligible project costs (5% additional injection is required for either a startup or special-purpose building). A private lender, (bank, credit union, or other financial institution, e.g. PMC) makes a first lien loan for 50% of the eligible project costs. The SBA then guarantees 100% of a second lien to a Certified Development Company located in your state for the remainder of the 30-40% of the eligible project cost.

    Refinancing (except for land loans for construction projects in some cases) is not eligible under this program. Land, building, large or essential equipment, plus necessary soft costs; e.g. architects, permits, interim interest, etc. are eligible. The primary ineligible costs are inventory, franchise fee, and working capital.

    For more information, call us or visit www.sba.gov.

  • FOR WHAT CAN THE LOAN PROCEEDS BE USED?

    Loans may be used for general business purposes such as acquisition or refinance of a business or real estate, inventory, equipment, account receivable, working capital, etc. Startups and new construction are also possible uses under our programs. The majority of the business real estate must be utilized for your business and not subject to passive rental income. However, our conventional programs do not require that the property be “owner-occupied”. Both our conventional and SBA loans and are generally real estate secured.

  • IS MY BUSINESS ELIGIBLE FOR AN SBA LOAN?

    The majority of businesses qualify for SBA financial assistance. The primary rules regarding eligibility are that:

    • The business must be operated for a profit and be small (see, “What Is Small Business”), [link] according to SBA rules and including affiliates.
    • The business must be operated in the United States or its possessions.
    • The owners must have equity to invest and must have utilized their available personal resources.

    The following is a sample of the types of businesses that are eligible for financing with PMC through the SBA programs:

    • Manufacturing Companies
    • Hotels & Motels
    • Restaurants
    • Convenience Stores
    • Dry Cleaners
    • Day Care Centers
    • Small Office Buildings
    • Office Warehouses
    • Bed & Breakfast
    • Health & Fitness Clubs
    • Funeral Homes
    • Veterinary Facilities
    • Assisted Living Facilities
    • Auto Repair Shops
    • Office Condos
    • Medical Professionals
    • Franchise
    • and others…
  • INELIGIBLE BUSINESSES (FOR SBA LOANS)

    • Real Estate held for investment (rental properties)
    • Academic schools
    • Lending activities (Leasing companies, factors, finance companies)
    • Pyramid sales plans
    • Gambling activities (Casinos, race tracks, etc.)
    • Charitable, religious, or other non-Profit organizations
  • WHAT IS A SMALL BUSINESS?

    SBA defines a small business for the 7(a) program by certain size standards. These include limitations based on sales or number of employees depending upon the industry classification of the business. For example, in the manufacturing industry the number of employees can be a maximum of 250 to 1,500 depending upon the industry code (SIC). The wholesale industry can not exceed 100 employees. Most service/retail oriented business cannot exceed a range of $30.0 million per year in sales which can be averaged over the past three years. There are exceptions dependent upon the type of business.

    For the 504 program a business is defined as small if it does not exceed a tangible net worth of $15mm and does not have an average net income over $3.0mm after taxes for the preceding two years. This can also be used as an alternative size standard for the 7(a) program.

    There are no size limitations for many of our conventional programs.

  • HOW DO I APPLY FOR A LOAN?

    Call PMC at 800-486-3223. You will be assigned a personal Business Development Officer (BDO). They will be able to discuss our various lending programs available to you.

    You may also click here in order to find the direct phone number for the BDO servicing your state.

    In addition, if you would like, you may click here to go directly to the application.

  • WHAT DOES IT COST TO APPLY

    There is not an application fee. Only when you have a loan approval and actual commitment letter in hand do we ask for monies to package the loan and order appraisals, environmental, etc.

  • HOW LONG DOES IT TAKE?

    Each loan request is unique and may require additional information in order to give you the best opportunity for approval. How long it takes in large part is a function of how quickly you are able to gather requested information and get it to us. However, once we receive a complete PMC application, we can generally give you a credit decision in 5-7 business days.

  • WHAT DOES PMC LOOK FOR IN A BORROWER?

    • Good credit.
    • Good character.
    • Some equity in the business already or to put into the startup project.
    • Income sufficient to pay personal obligations after the loan.

    Please understand credit decisions are not an exact science. Approvals are dependent upon a combination of factors including but not limited to those listed above. Loan decisions are subject to a complete file, full underwriting, and loan committee review.

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