Large project loans, sometimes called Mega loans are commercial loans for very large multi-purposed staged projects. The amounts of the loans usually range from tens of millions to several billion dollars. Financing for these projects are advanced in stages as the project progresses toward completion.
Almost all kinds of large commercial real estate projects will fall into this large project category. Large apartment complexes, theme parks, high-end resorts, casinos, office building, shopping centers, golf courses, sports arenas and stadiums, hotels, marinas, timeshares, parking decks, condominiums and planned high-end residential communities and just about any other building or development that you can imagine.
Many industrial applications are also candidates for these large loans. If your business requires you to build factories, warehouses or expand a manufacturing facility, you may have to acquire one or more mega loans.
As you may imagine loans of this magnitude will require substantial collateral to secure the loan. A third party may have to come into the transaction in order to offer a Bank Guarantee/Letter-of-Credit that is acceptable to the lender. These guarantees are not cheap and usually range from $25,000 to $100,000 or more with no guarantee that you will get the funding. You will have committed a substantial amount of money by the time you add this cost to the possible feasibility study costs, engineering and planning, legal fees and administrative fees you will have to pay in order to comply with various local and state ordinances.
A commercial loan for a large project is neither for someone operating on a shoestring budget nor for the faint-of-heart. You must commit a substantial amount of capital just to get into the game.
The positive side is that by the time you are considering projects at this level, you should have accumulated valuable assets and built a strong financial statement. You will also built a network of influential individuals who are willing to help you succeed.
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