OWNER-OCCUPIED COMMERCIAL REAL ESTATE INVESTMENT
P.I.E. invests alongside a small business to make commercial real estate loans (from CDC's, CDFIs, and Banking Partners) more accessible
EXAMPLE:
Business Owner Suzie Doe has a successful childcare facility. Her business is growing rapidly and she needs to purchase and renovate a new location in order to accomodate for the growth. Total cost to purchase and renovate a business-purpose property is $500,000 (including building purchase, renovation, land, furniture and equipment, and soft costs).
Proposed deal structure as follows:
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$25,000, Equity Contribution by Owner-occupant
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$100,000 Partners-in-Equity contribution (SBA requires at least 10% equity)
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$225,000, 1st lien with bank covering up to 50% of the total project cost
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$150,000, 2nd lien with CDC loan, 20 year, fixed rate covering up to 35%
DIRECT
BUSINESS
INVEST
P.I.E. invest directly into small businesses that meet the Qualified Opportunity Zone Business Criteria.
EXAMPLE:
Business Owner Suzie Doe has a successful childcare facility. Her business is growing rapidly and she needs to improve and expand her flagship location with additional office space, classrooms and digital learning equipment. Total capital need for the expansion is $200,000.
Proposed deal structure as follows:
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$25,000, Equity Contribution by Owner-occupant
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$100,000 Partners-in-Equity contribution
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$75,000 Bank agrees to operating capital loan
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Investment in exchange or equity position in business.
*Terms to be negotiated with business owner.