What Sizes of Loans Does Fountainhead Finance?

I’ll often get asked by commercial mortgage brokers, commercial real estate brokers, banks, credit unions, and business owners directly, what size projects do we finance? So far, I’ve done a $26.5 million hotel project with an SBA 504 loan, but our average is probably more in the $2.5-5 million range. We will go as far down a $400 thousand property. We usually try not to do too many of those unless they’re commercial condos and maybe they’re already in our existing commercial condo project. We can possibly do more than just one but that would imply a $200 thousand first lien loan as a third-party lender. We’ll do those, but we’re not looking for a ton of those because they tend to be just as much effort as a project 10 times that size. Lately we’ve been doing a lot more projects over the $5 million mark because that’s really the cap for a competing loan program called the SBA 7A. We do a lot of projects over $5 million and we’re very eager to do more multi-purpose properties, like office buildings, industrial warehouses, and things like that. We do a lot of flagged interior corridor hotels, so we do that all the time around the country. 

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