This report is a summary of key findings from MultiFunding’s First Quarter National Lending Snapshot. The objective of the study is to determine amongst small business owners looking for loans in today’s market – what loan types they qualify for and what interest rates they can expect to pay for their loans.

1. MULTIFUNDING Quarterly Small Business Lending Snapshot First Quarter 2011

2. ABOUTTHE SNAPSHOT PARTICIPANTS 250 participants are currently looking for debt and have been referred to MultiFunding. All participants are either established businesses or entrepreneurs looking to purchase an existing business (not start ups). Participants are geographically diverse and come from a wide variety of industries. Participants came to MultiFunding through multiple marketing channels and sources. The average annual revenue of a participating company is $750,000. The average requested loan amount is $325,000.

3. METHODOLOGY All participants went through a detailed interview to determine their: Collateral Credit Cash Flow Survey results are based upon the loan type that MultiFunding believes the client is most likely eligible for and the corresponding annual interest rate they can expect to pay.

4. KEY FINDINGS Source : MultiFunding Quarterly Lending Survey

5. OBSERVATIONS Small business owners are largely divided into two groups today in the lending world. 31% of small business owners are classified as “A Borrowers”. They can benefit from a commercial mortgage or a loan program backed by the SBA. These business owners are fortunate that they still have equity left in their homes, buildings, and equipment that is sufficient to meet the collateral requirements of banks and SBA lenders. 47 % of small business owners, “B Borrowers”, will have to turn to Factoring, Merchant Cash Advance Loans, Unsecured Loans and Private Money Loans. They pay a high premium because of their lack of collateral. 15% are not eligible for any type of financing.

6. ANNUAL LOAN COSTS Source : MultiFunding Quarterly Lending Survey

7. KEY FINDINGS The “A Borrowers” benefit from interest rates between 3 and 8% a year. Ironically, the government supported SBA programs predominately favor this group. The “B Borrowers” face interest rates and lender charges in excess of 23% per year. Many of these Borrowers are borrowing from “private lenders” who borrow money from hedge funds and private equity firms at high rates.