Mike Fasulo's presentation at 2014 Lender's Meeting at Arkansas State University in Jonesboro, Arkansas.

1. Overview
5/22/2014 Company Confidential 1

2. Michael Fasulo, Vice President
467 Southwest Dr., Jonesboro, AR 72401
mfasulo@arcapital.com
888-726-9226 (office – toll free)
501-519-3442 (cell)

3. • Established in 1957
• Private non-profit lending corporation
• Dedicated to economic development
• Fully supported by the State of Arkansas
• Audited by the State Banking Department and SBA.
• Rely heavily of our banking partners to accomplish the mission of
improving the economy of the state and preserving/creating jobs.
• Experienced staff well trained in SBA and USDA Lending.

5. Benefits of a SBA/USDA Loan to the Bank:
- Allows for loans to be considered when collateral is an issue
- Allows financing for startup businesses
- Longer amortizations allows for better debt service coverage
- Refinancing can help stabilize a struggling business
- Reduces portfolio concentrations in industry segments
Benefits of a SBA/USDA Loan to the Borrower:
- Allows for financing that otherwise would not be available.
- Provides true amortizing debt – no balloon payments.
- Longer amortization lowers the monthly payment

8. (Part of the Arkansas Corporation Group)

9. SBA 504 Loan
• An SBA loan is a direct loan issued to your
customer in a subordinated position.
• Although it is a SBA loan you have no
direct contact with the SBA.
• 6BCC is responsible for underwriting the
SBA loan.
• Your permanent and interim loan are
made as conventional bank loans.

10. Six Bridges Capital Corp.
• Current SBA 504 Loan Debentures in
6BCC’s Portfolio = $100 million
• # of Loans = 200
• Markets served by 6BCC:
All of Arkansas
Fayette, Shelby & Tipton in Tennessee
Desoto, Marshall, Tate & Tunica in Mississippi

11. SBA 504 Loan
• Eligible Project assets include the following:
• Real Estate
• Equipment
• Real Estate and Equipment can be combined in
one SBA 20-Year Debenture; lowering the
overall payment to the Applicant.
• An Applicant must meet SBA Eligibility
guidelines – but we are responsible to make the
determination.

12. SBA 504 Loan Program
• A SBA 504 loan can be used for the following:
• New construction
• Purchase of leased property
• Change of ownership
• Refinance in conjunction with an expansion
• Straight refinance not allowed at this time
• Debenture Amounts:
• $150,000 to $5,500,000 Debenture
• $300,000 to $13,000,0000+ Project Size

13. SBA 504 Loan
Existing Business – Multi Purpose Building
10% - Equity Injection
40% - SBA Debenture
50% - Bank Permanent First Mortgage

14. SBA 504 Loan
Existing Business – Single Purpose Building
15% - Equity injection
35% - SBA Debenture
50% - Bank Permanent First Mortgage

15. SBA 504 Loan
New Business – Single Purpose Building
20% - Equity Injection
30% - SBA Debenture
50% - Bank Permanent First Mortgage

16. Current Debenture Rates
Interest Rates:
20 Year = 5.19%
10 Year = 4.48%
Note: These are established at the time of the SBA Debenture funding and
once set are for the full term of the loan
SBA Fees:
.5% on bank’s 50% Permanent First Mortgage
2.16% on the SBA’s Net Debenture
(Fees reduced by .5% for Veterans)
Note: All fees can be added to the project and repaid over the amortization
period

17. Benefits of a 504 Loan to the Bank:
- Improves Collateral Position - Loan to Value of 50%
- Provides ability to lend on equipment and have the added
protection of real estate collateral.
- SBA Debenture provides a long term fixed interest rate,
making the payment requirements more predictable.
- Longer amortizations allows for better debt service coverage
- Reduces portfolio concentrations in industry segments
Benefits of a 504 Loan to the Borrower:
-Allows for down payments as low as 10%.
-Preserves capital that can be used in the business.
-Provides long term fixed interest rates.
-Provides true amortizing debt.

19. Learn more about our Loan Products at:
www.arcapital.com
Thank you!