AboutMike Weikle Expertise Banking Lender Liability; Insurance Coverage; Consumer Rights; Bank Fraud; Criminal: White
Collar Crime; Fair Debt Collection Practices Act; Directors and Officers Liability
Experience Commissioned National Bank Examiner 7 years; President of Two Community Banks; Division Claims Specialist for American Bankers Association Sponsored Insurance Program; Carter Member of the Bank Fraud Team of the Office of the Comptroler of the Curency "OCC" (National Banjk Examiners); Attorney previously representing FDIC and Resolution Trust Corporation as well as consumers and commercial borrowers in claims against the banking industry; Former Data Processing Systems Examiner for the OCC; Expert Witness on variety of banking issues in both state and federal court.
Education/Credentials Certified Public Accountant;
JD -- West Virginia College of Law - Order of the Coif
Data Processing Training Old Dominion Bank and IBM
Question I would like to know what you would expect the interest rate would be on a loan of 50M for a project. My understanding is 100-150 basis points over prime.
Answer Hi Dan,
100-150 basis points over prime may be available. However, there are a number of variables that impact the rate of interest you may ultimately be offered. Some of the variables are:
a. Is this the project of a new or existing business?
b. What type of project are you proposing?
c. Will you be personally guaranteeing the loan?
d. How long do you expect it will take before you can begin repayment?
e. Is your existing credit good (score of 700+)?
f. Does the lender have any lending expertise with projects such as yours? Finding a lender with experience with this type of project is very important as it will eliminate some of the discomfort a lender without such expertise might have with a project they are unfamiliar.
g. What type of collateral can you put up (real property (best) and certain types of personal property may be acceptable to the lender).
h. What experience do you have that supports the project you have in mind?
i. Do you have a proven market for your project?
j. Do you have a partner?
k. Who will take over the project if something happens to you?
l. Do you have a solid business plan for your project?
m. What is the economic status of the area you plan to initiate your project.
n. Is your project a good fit for the area where it will be located? That is, is there a need for your project?
All of these factors will play a part in the lender's decision as to whether or not to fund your project and the rate of interest you will be charged. I would approach two different lenders at the same time. All loans will not be structured the same by different lenders. Do not leave the fate of your project in the hands of a single lender.
