Lumica Capital LLC: Empowering Your Financial Journey

Lumica Capital LLC provides a wide array of financing options, including traditional commercial loans, investment financing, bridge loans, hard money loans, and private money transactions. We also specialize in SBA loans, offering both SBA 7(a) and SBA 504 programs for business growth and expansion.

We simplify the SBA loan process through our direct partnership with two PLP SBA banks, allowing us to perform preliminary underwriting and issue Letters of Intent quickly. This streamlines the application and approval process, making it faster and more efficient for our clients.

Our bridge loans provide short-term financing to cover gaps between transactions, ideal for quick purchases or renovations. Hard money loans, often used in distressed situations, are asset-based and provide fast funding without relying heavily on the borrower’s credit score. Both options offer flexibility and quick turnaround times for urgent financing needs.

Applying for a commercial loan involves evaluating your needs and eligibility, gathering necessary documentation, and selecting the right type of loan. Begin by determining the loan’s purpose and ensuring you meet basic eligibility criteria such as credit score, business age, revenue, and profitability. Prepare a detailed business plan, financial statements, tax returns, personal financial information, and legal documents. Choose the right type of loan (e.g., traditional commercial loan, SBA loan, bridge loan) and select a lender by comparing interest rates, terms, and fees.

Submit a complete and accurate application with all required documentation, and be prepared for the lender’s review process, which may involve providing additional information. If approved, review and possibly negotiate the loan terms before signing the agreement. After the funds are disbursed, use them appropriately and make timely repayments to maintain good credit standing. Maintaining good credit, demonstrating business stability, and providing collateral can enhance your chances of approval. Consulting with a financial advisor can also be beneficial.

Eligibility for an SBA 504 loan primarily targets for-profit small businesses operating within the United States or its territories. To qualify, these businesses must meet specific financial criteria, including having a tangible net worth below a certain threshold and maintaining average net income levels under a set limit after federal income taxes for the preceding two years. These requirements ensure that the program supports genuinely small enterprises in need of substantial fixed-asset financing.

Additionally, the business must demonstrate a capacity to create or retain jobs or fulfill other public policy goals, such as community development or energy efficiency improvements. Personal guarantees from the principal owners are typically required, and the assets financed through the loan usually serve as collateral. This ensures that the funds are utilized effectively to foster business growth and economic development.

When applying for a Commercial loan, lenders typically consider several key factors:

1. Credit History: Both personal and business credit scores.
2. Business Financials: Income statements, balance sheets, and cash flow statements.
3. Business Plan: Purpose of the loan, market analysis, and business strategy.
4. Collateral: Assets or personal guarantees that can secure the loan.
5. Debt-to-Income Ratio: The company’s current debt compared to its income.
6. Loan Amount and Terms: The requested loan amount and proposed repayment terms.
7. Industry and Economic Conditions: The state of the industry and broader economic environment.
8. Management Experience: The track record and experience of the business owners and management team.
9. Time in Business: The length of time the business has been operating.
10. Legal Structure and Compliance: The legal structure of the business and regulatory compliance.

These factors help lenders assess the risk and the business’s ability to repay the loan.

A wide variety of businesses can apply for a commercial loan, ranging from small startups to large established enterprises. These loans are available to businesses in various industries, including retail, manufacturing, healthcare, real estate, and services. Whether you’re looking to expand operations, purchase equipment, invest in property, or improve cash flow, a commercial loan can provide the necessary funds. Both for-profit and non-profit organizations can qualify, as long as they meet the lender’s criteria.

Startups and new businesses can also apply for commercial loans, although they may face more stringent requirements due to their lack of financial history. In these cases, a strong business plan, personal guarantees, and collateral can help improve their chances of approval. Regardless of the business type, the key is to demonstrate a viable business model and the ability to repay the loan. By meeting these criteria, businesses across various sectors can secure the funding needed to support their growth and operations.

A bridge loan functions as a short-term financing solution designed to provide immediate liquidity during transitional periods, particularly when there is a gap between the purchase of a new asset and the sale of an existing one. This type of loan is often secured by collateral, such as real estate, to ensure the lender has a safety net in case of default. By offering quick access to funds, bridge loans enable borrowers to complete transactions without having to wait for the long-term financing to be finalized or the sale of the old asset to be completed.

Typically, bridge loans are used in real estate scenarios where a homebuyer wants to purchase a new property while their current home is still on the market. In such cases, the bridge loan covers the down payment or full purchase price of the new property, which is then repaid once the existing home is sold. Besides real estate, bridge loans can also be utilized for business expansion or covering short-term operational needs, provided there is a defined exit strategy for repayment, such as securing permanent financing or completing a significant business transaction.