Mega Loans Capitalization Programs
Mega loans or large project loans may be funded in numerous ways. One of our funding sources has a Capitalization Program divided into 2 parts depending up the size of the funding package needed. This program was developed in direct response to limited financing currently available from other sources. Some of these lending sources have taken unfair advantage of desperate business owners. The Capitalization Program offers a viable alternative for financing large projects. Your project will have to demonstrate a clear and feasible potential revenue to repay 50% of the interest on the security bond.
How Does The Capitalization Program Work? Your project has to be approved for the Program. The following steps are taken: - You will be required to paid the appropriate Sponsor Fees*.
- Sponsor Fees accessed and paid by you or your company
- an asset-backed private debt instrument (bond) is created and sold to the public as a private placement issue.
- The asset that backs the bond is a Senior Life Settlement Bundle comprised of polices issued by AA+ rated insurance companies commensurate with the funds needed to ultimately retire the bond; known as ‘the asset pool’. The asset pool repays all principal and one-half (50%) of the interest required on the debt instrument.>
- Your project repays the remaining (50%) interest due over the life of the bond.>
- Your project must be able to demonstrate positive cash-flow by year three to be able to cover the annual debt service obligation.
The firms that participate in structuring the program are well known and respected in their fields (legal, risk analysis, underwriting, SLS aggregation and bond counsel) and will be disclosed upon execution of Non-Circumvention Non-Disclosure Agreement by the project management. Typically, the process will take from three to five months depending on the amount of funding required.Begin the conversation to acquire the financing you are seeking by filling out the short Mega Loans and Large Project Loans Form here.
The 2 Kinds of Capitalization Program Examples Micro-Cap Program ($38 Million - $50 Million) - 18 year term
Apr 3.5%* - First three years payments deferred >
- Sponsorship fees: initially $350,000 to 450,000 for legal, underwriting, asset aggregation, bond counsel, bond underwriting, etc. \>
- Retainers and fee payments discussed by project directly with specialists
- All fees incurred are reimbursed by the program at the time of funding
Large-Cap Program ($50 Million and Larger)- 10 year loan term
- Apr 9%*
- First three years payments deferred
- Sponsorship fees: Initially $575,000 to $675,000 for legal, underwriting, asset aggregation, bond counsel, bond underwriting, etc.
- Retainers and fee payments discussed by project directly with specialists
- All fees incurred are reimbursed by the program at the time of funding
*APR average examples
Fill out the Mega Loans and Large Projects Form here.
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