Welcome to Midwest Financial Capital

Financial Capital Lenders


Midwest Financial Capital was formed in 2001 to provide mortgage brokers, commercial bankers and borrowers access to the secondary market for long-term, fixed-rate, recourse and non-recourse commercial real estate mortgage loans. MFC arranges loans to owners and investors of real property throughout the country ranging from $250,000 to $10,000,000. Learn More

About Us

MFC is a service-oriented firm staffed with associates that are highly skilled in the underwriting and closing of conduit and SBA loans for their clients. Conduit and SBA loans are inherently more complex and cumbersome for borrowers versus traditional financing and therefore MFC has hired individuals that are experts in each part of the loan process, including originators that are intimately familiar with the loan products offered by MFC, underwriters skilled in the underwriting of complex properties, often with poor information, and closing staff that can answer all the questions regarding the legal complexities of conduit and SBA loans and get loans closed.

Products


SBA 7a
SBA 504
Working Capital
USDA
Insurance

MFC serves the small business market by providing commercial financing for projects between $250,000 and $5,000,000 for: real estate, expansion, construction, refinance, business acquisitions, start-ups, franchises, furniture, fixtures, equipment, inventory and working capital.



SBA 7A Loan Program


Purpose of Loan

Commercial real estate purchase, expansion, construction, refinance; business acquisitions; start-ups; franchises; furniture, fixtures & equipment; inventory and working capital

Loan Amount

Up to $5,000,000

Capital Injection

Minimum 10% down payment with the exception of debt refinance loans, which may require no down payment

Loan Term

From 7 years up to 25 years fully amortized

Interest Rate

Floating rate, up to 2.75% above Wall Street Journal prime rate; adjusted quarterly

Loan Fees

$1,500 loan packaging fee / SBA guaranty fee determined by the SBA

Prepayment Penalty

If a loan is for less than 15 years, there is no prepayment penalty. If a loan is for 15 years or more, the borrower may prepay up to 25% of the principal balance during the first three years of the loan without penalty. Any prepayments in excess of 25% will be assessed a prepayment penalty of 5% in Year 1, 3% in Year 2 and 1% in Year 3

Collateral

First lien mortgage on business real estate, and UCC filings on machinery and equipment, accounts receivable and inventory

Loan to Value

Up to 90%

Personal Guarantee

Guarantee of all principals who own 20% or more of the business

Debt Service Coverage

Minimum target of 1.20x for past fiscal year or recent interim period for existing businesses. A start-up or turnaround business will be looked at on a projection basis


Borrower Benefits

  • Long repayment terms - reducing monthly payments
  • Frees up cash to expand your business
  • Low down payment of as little as 10% on multipurpose real estate acquisitions and as little as 15% on single-purpose real estate acquisitions
  • Financing available for most industry types including: manufacturers, hotels/motels, gas station/convenience stores, restaurants, assisted living facilities, and daycares

Terms

  • Real estate - up to 90% financing, up to 25 years, prepayment penalty for initial 3 years (none after the end of year 3)
  • Business acquisition - up to 80% financing, up to 10 years, no prepayment penalty
  • Refinance - up to 100% financing; up to 25 years, prepayment penalty applicable for initial 3 years on terms greater than 15 years
  • Rates are based on a spread over the Prime Lending Rate (rates vary depending on the specific strengths of the transaction)
  • SBA Guarantee Fee is paid directly to the U.S. Small Business Administration; amount varies based on loan/guarantee amount; other customary fees also apply
  • All SBA 7a loans are fully amortized and are assumable

MFC serves the small business market by providing commercial financing for projects between $250,000 and $11,000,000 for real estate, expansion, construction, refinance, business acquisitions, start-ups, franchises, furniture, fixtures, equipment, inventory and working capital.



SBA 504 Loan Program


Purpose of Loan

Commercial real estate purchase, expansion, construction, refinance, renovation of owner-occupied commercial real estate, and purchase and installation of long-life machinery and equipment

Loan Amount

Up to $11,000,000

Capital Injection

Minimum 10% down payment

Loan Term

Terms up to 30 years on the first mortgage fully amortized, and up to 20 years on the second mortgage fully amortized.

Interest Rate

Pricing on first mortgage based on conventional rates, and favorable pricing on the SBA debenture, fixed for 20 years

Loan Fees

$1,500 loan packaging fee / SBA guaranty fee determined by the SBA.

Prepayment Penalty

Prepayment penalty for initial 10 years, none after the end of year 10

Collateral

First lien mortgage on business real estate, and UCC filings on machinery and equipment, accounts receivable and inventory

Loan to Value

Up to 90%

Personal Guarantee

Guarantee of all principals who own 20% or more of the business

Debt Service Coverage

Minimum target of 1.20x for past fiscal year or recent interim period for existing businesses. A start-up or turnaround business will be looked at on a projection basis


Borrower Benefits

  • Low down payment of only 10%
  • Long repayment terms - reducing monthly payments
  • Frees up cash flow to expand your business
  • Many rate options including long term fixed rates
  • Associated fees and soft costs may be financed in the loan

Terms

  • First mortgage
  • Up to 30 years, fully amortized
  • Competitive rates
  • Prepayment penalty applies and is set based on various factors
  • Second mortgage
  • 20 year, fully amortized
  • Fixed rate is determined at SBA-guaranteed 504 debenture sale
  • Fees set by Certified Development Corporation
  • Prepayment penalty for initial 10 years, none after the end of year 10

USDA B&I Loan Program


Eligible Areas

Projects financed under the B&I program must be located in the United States or its possessions/territories and must be in a rural area (defined as having a population of less than 50,000)

Eligible Borrowers

Any legal entity including individuals, public and private organizations and federally recognized Indian tribal groups. There is no size restriction on the business

Use of Proceeds

B&I loans may involve acquisitions, construction, conversion, repair, modernization or debt refinance. Loan proceeds can be used for real estate acquisition and/or improvements, machinery, equipment, furniture, fixtures and working capital. Closing costs and guarantee fees are also eligible

Terms

  • First mortgage
  • Up to 30 years, fully amortized
  • Competitive rates
  • Prepayment penalty applies and is set based on various factors
  • Second mortgage
  • 20 year, fully amortized
  • Fixed rate is determined at SBA-guaranteed 504 debenture sale
  • Fees set by Certified Development Corporation
  • Prepayment penalty for initial 10 years, none after the end of year 10

Borrower Equity Requirements

  • For existing businesses: a minimum of 10% tangible balance sheet equity is required at the time of issuance of the Loan Note Guarantee
  • For start-up businesses: a minimum of 20% tangible balance sheet equity is required at the time of issuance of the Loan Note Guarantee
  • Equity is determined in accordance with Generally Accepted Accounting Principles (GAAP)

Midwest Financial Capital partners with third party lenders to grant loans to agency-driven firms for the sole purpose of financing the premiums of their clients. Premium financing creates an opportunity for agencies to build enterprise value while also allowing policyholders to stretch payments over a period of time, making policies more affordable.

Succession & Recapitalization Loan


A recapitalization strategy is the transfer of company ownership, typically to relatives, employees, management, key producers or others. It provides the seller with cash needed to exit while leaving the business in the hands of people who will ensure its legacy and continuity. A planned recapitalization succession transaction can optimize owner economics and buyer opportunities.

Owner Advantages

  • Creates liquidity for owner
  • Allows exiting owner to participate in agency's increasing value.
  • Owner can dictate succession/leadership
  • Owner can stay engaged as long as they prefer
  • Taxes can be strategically managed

Successor Advantages

  • Ability to secure an agency loan that might not otherwise be possible
  • Agency profits are used to pay-off the note instead of personal assets
  • Carriers are happier with continuity of ownership
  • Owner can stay engaged as long as they prefer
  • Associates of the agency are likely to stay because day-to-day remains consistent
  • Ability to gain control of agency rather than becoming an employee

We’re Not Most Lending Institutions


We offer a dedicated lending team focused only on the Insurance industry, and take time to get to know you. Our knowledge and expertise in the industry allows us to smoothly and quickly tailor a loan package structured perfectly to meet the needs of your Insurance business. Midwest Financial works directly with national banks who have a footprint in your market, and is a top originator of small business loans in the United States.

  • Cash flow driven lending with no minimum collateral or down payment requirements
  • Dedicated loan team focusing exclusively on the Insurance industry
  • Flexible & efficient closings to meet borrowers’ needs
  • Extensive financing options with competitive rates, no balloons and no covenants
  • Technology-based lending platform streamlines the process with minimal paperwork
  • Access to your lender and underwriter by cell phone
  • Consultative relationship that continues after the loan has been financed

For businesses with a steady and assorted stream of revenue, we are able to offer quick and easy access to working capital. Our process is simple, to the point, and without the hassle of traditional bank loans.

Traditional lenders ignore the needs of small firms, but we feel that businesses with a consistent revenue stream have untapped borrowing potential. Our team works to help firms, which may have been considered too risky by traditional lenders, to qualify for up to $250,000 by offering alternative financing options.


Who Qualifies?

Small to mid-size businesses with consistent and diverse revenue streams.

Renewal is Quick and Easy

For customers in good standing, the renewals process is quick and easy.

Simple Application Process

One page application, bank statements, and your most recent tax return are needed.

All Business Types

Financing all business types excluding: gambling, adult entertainment, municipalities, and nonprofts.

Faster Approval

You’ll receive a quote within 24-48 hours and money in your business account as fast as 2-4 business days.

Financing Options for All Credits

We offer business financing options for all credits.


Types of Businesses Funded

  • Construction
  • Transportation
  • Contractors
  • Landscaping
  • Dentists
  • Franchises
  • Restaurants
  • Retail Stores
  • B2B Services
  • Hotels/Motels
  • Medical Clinics
  • Bars/Nightclubs
  • Doctors
  • Beauty Salons
  • Auto Repair Shops
  • And Many More

Use of Funds

  • Expand Your Business
  • Purchase Inventory
  • Upgrade Equipment
  • Manage Seasonality
  • Remodel Your Facility
  • Meet Payroll
  • Handle Emergencies / Tax Liabilities
  • Any Other Business Purpose

Contact Us

Midwest Financial Capital

11805 N. Pennsylvania Street

Carmel, Indiana 46032

317-250-6372

loans@midwestfinancialcapital.com