GCF Commercial Programs


January 12, 2010
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Rates and Matrix Table of Contents

Programs

Page

Rates and Matrix Table of Contents . . . . . . . . . . . . . . . . . 1
Multifamily 5+ Units . . . . . . . . . . . . . . . . . . . . . . . 2-3
$500K to $100MM Multifamily loan amounts to 80% LTV

Commercial Program A . . . . . . . . . . . . . . . . . . . . . . 4

$500K to $5 million loan amounts to 75% LTV

Commercial Program B . . . . . . . . . . . . . . . . . . . . . . 5
> $150K to $4 million loan amounts to 65% LTV to 85% CLTV

Commercial Program C – Owner Occupied . . . . . . . . . . . . . . 6
$500K to $5 million loan amounts to 75% LTV

Hotel or Motel . . . . . . . . . . . . . . . . . . . . . . . . . 7
$150K to $4 million loan amounts from 60% to 65% LTV

SBA 7A . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 $250K to $2 million loan amounts

SBA 504 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
$250Kto $4 million loan amounts to 90% LTV

Construction, Expansions, Renovations and Tenant Improvements . . . . 10

$150K to $4 million to 90% LTC and must qualify to roll over to our perm program Bridge and Rehabilitation . . . . . . . . . . . . . . . . . . . . . 11
$2 million to $10 million to 70% LTV

Hard Money Bridge, and Rehabilitation . . . . . . . . . . . . . . . 12

$1 million to $5 million to 65% LTV

Multifamily 5+ Units, Mixed Use & Mfg Home Parks $750K to $100+ million

80% LTV Purchase, Refinance & Cash Out Refinance 70% LTV for loan amounts from $500K to $750K
5 Yrs Fixed Balloon
Min DSCR Max LTV Amortization

RATES ≤ $3 million ≥ $3 million
Yield Maintenance PPP 1.20 80% 30 6.30 6.02
Lasts 4.5 Yrs. 1.35 65% 30 6.18 5.88 1.55 55% 30 5.96 5.72 7 Yrs Fixed Balloon Min DSCR Max LTV Amortization RATES ≤ $3 million ≥ $3 million Yield Maintenance PPP 1.20 80% 30 6.41 6.16 Lasts 6.5 Yrs. 1.35 65% 30 6.27 6.02 1.55 55% 30 6.07 5.86 10 Yrs Fixed Balloon Min DSCR Max LTV Amortization RATES ≤ $3 million ≥ $3 million Yield Maintenance PPP 1.20 80% 30 6.32 6.11 Last 9.5 Yrs. 1.35 65% 30 6.18 5.97 1.55 55% 30 5.98 5.81 30 Yr. Fixed Min DSCR Max LTV Amortization RATES ≤ $3 million ≥ $3 million Yield Maintenance PPP 1.20 80% 30 7.66 7.38 Lasts 15 Yrs. 1.35 65% 30 Call for quote 7.24 1.55 55% 30 Call for quote 7.08 Pre-Qual Package Request direct

Underwriting Highlights
Multifamily 5+ Units, Mixed Use & Mfg Home Parks
Origination: Paid to GCF/Co-Originator
Rates: PAR to Brokers
LTV: Maximum 80% for Purchase, Cash Out or Rate and Term Refinances
Credit Score: Middle Score 621+ with large net worth and high liquidity of borrower. 680+ for average borrowers.
Supplemental Financing: Second mortgage to take advantage of appreciating market for first five years in specific markets except for hybrid program which does not allow supplemental financing
Hybrid: Auto roll over to 6 MO LIBOR plus 2.65% to margin. Add 0.30% to Balloon step down rate. No supplemental Financing allowed on this product.
Interest Only: 10+ yr only add 5 bps to rate for first two years then reverts to fully PI payment for the remaining term
Occupancy Requirements: Minimum 90%+ for minimum of 90 days
Borrower Net Worth: Must be greater than the loan amount
Third Party Reports: We order all third party reports
Title Policy: All Refinances we order
Loan Amounts: $500,000 to $100,000,000+. Max LTV 70% for loan amounts below $750K.
Rate Lock: Available after Underwriting approval. 1% deposit for 30 days. Refunded at closing
DSCR: Minimum Debt Service Coverage Ratio is 1.20+
Recourse & Non Recourse: Recourse standard and non Recourse available in selected markets with carve outs
Seasoning for Cash Out Refi’s using Appraised Value: 12 months
Population restrictions: Property must be located in city with 10,000 or more population
Non-Profit Borrowing Entities: Allowed
Mixed Use: No more than 20% of income allowed from commercial component
Manufactured Home Parks: $1 million min loan amount, min 50 pads, 50% plus doublewides, two car parking on all pads, all homes must be skirted, paved roads & maximum 10% park owned units.
Bankruptcies and or Foreclosures on credit report: Not allowed
Non recourse self directed IRA borrowers: Are allowed and are assumable
Qualification Rate for ARM Product: Add life time cap of 3.00% to today’s rate
Out of State Borrower: Must be seasoned investor in the area the new property is being purchased if purchasing out of State property. Or, max LTV 65% with a 1.35 min DSCR on the property along with a seasoned management company 1-4 units on same legal adding up to 5 or more units of like kind: Must have tenants occupying property. We treat as multifamily.
Rate Lock: Rate locks are typically locked 10-15 days prior to loan closing. If the loan is $3MM or less, the borrower can deposit a 1% rate lock fee that is refundable at closing. If the loan is over $3MM the rate lock fee is 2%, of which 75% is refunded at closing and the remaining 25% is refunded within 45 days after closing. We also have the ability to “early rate lock” loans. That process typically takes two weeks, which is driven by the appraiser giving us an indication of the value of the property. Early rate lock adds 3 bps to the rate, adds 1% rate lock fee to the above scenarios, and requires the borrower to provide the information needed for underwriting in a very timely manner.

Definition of Yield Maintenance Pre-Payment Penalty

Yield Maintenance is a method of calculating pre-payment options. It is calculated by determining the difference in interest between the note rate and the rate at time of payoff. If the current market rate is greater than the note rate the pre-payment penalty is 1% of the outstanding loan amount. For example; if the current market rate is lower, you take the note rate less the current market rate times the remaining fixed term of the loan. Multiply that number times the remaining loan amount and you have arrived at the yield maintenance pre-payment penalty.
,br> For example; a million dollar 10 year loan closes at 7% with 7 years remaining would have a pre-payment penalty of $140,000 if the current market rate is 5%. (7% - 5%) X years X $1 million.
,br> The only way the borrower can get out of the pre-payment penalty is if a new buyer will assume his existing loan and then their is a fee of 1% paid to the servicer of the loan plus costs to do the loan. New buyer must also be credit worthy. Then the owner does not have to pay any pre-payment penalty.

Commercial Program A
$500K to $5 million

Office, Industrial Buildings and Single National Credit Tenant Retail Buildings
1.25+ DSCR 75% - Purchase, Rate and Term Refinance 70% - Cash Out Term/Amortization 30 Years Minimum Credit 680+ Min 90% occupancy, No Ground Leases Borrower must have 10% of the loan amount liquid pre close and larger net worth than loan amt Declining . Programs
Pre-Payment Penalties Rates . 3 Years
Hybrid 5,3,1 6.42% . . 5 Years
Hybrid 5,4,3,2,1 6.73% . 7 Years
Hybrid 7,6,5,4,3,2,1 6.93% . 10 Years

Hybrid 10,9,8,7,6,5,4,3,2,1 7.29% % Hybrid: After fixed period the rate will adjust quarterly at spread of 3.00% over 3 month LIBOR Index

Note: Call for other property type rates i.e. Anchored Retail and Un-Anchored Retail (case by case)

Rate Lock: 60 day rate lock upon issuance and acceptance of term sheet with $500 non refundable lock fee

Pre-Qual Package Request direct

Commercial Program B

$150K to $4 million First Mortgage
Seller Carry Back or Other Institution Second Allowed up to 85% CLTV
Industrial bldgs - No buildings built prior to 1950 and > 50,000 sq ft
Minimum DSCR 1.25+ Term/Amortization 20 or 25 Years
Minimum Score 650+
No Cash Out allowed on this program unless funds are going back into bldg improvements

*Tier I $150K to $4 million 65% LTV
Industrial, Office Buildings, Office Condo, Single Tenant
Medical Condo, Retail, Strip Malls, Warehouse Flagged Hotels/Motels (65% LTV if built within last 10 yrs)

*Tier II $150K to $4 million 60% LTV Light Automotive Service Repair Facilities, Auto Tire and Brake Centers, Restaurants, Bed and Breakfast, Funeral Homes, Day Care, Auto Service, Assisted Living Care, Grocery Store, Self Storage, Flagged Hotels/Motels (60% LTV if built 11-20 years ago)

*Tier III $150K to $3 million 50% LTV

Car Washes, Bowling Alleys, Ice Rinks, Movie Theaters, Aircraft Hangers Golf Courses, Country Clubs and Special Use Real Estate
Owner Occupied – Add 0.50% to rates
Tier II – Add 0.50% to rates
Tier III – Add 0.75% to rates Tier I Rates
. Program B – No Balloons. Non O/O Prime adjusts Quarterly 6.00% . . . 1 – Yr. Fixed Recast 6.25% % 33 – Yr. Fixed Recast 6.50% % . 5 – Yr. Fixed Recast 6.75% % . 1) Borrower may make additional principal reductions without penalty up to 20% of the original note balance annually 2) Rate locks beyond 30 days are available up to 60 days with a deposit of $3,500 or .75% of the permanent loan amt 3) Floor Rate 6.00% 4) No ground leases 5) Recast – At no cost rate is rolled over to new recast fixed rate based on fixed X year LIBOR Swap index plus a margin. Borrower can eventually own the property with one closing. Pre-payment Penalty Options – Add to Rate Prime 3 and 5 Yr Declining 5,4,3,2,1 0.50% 0.50% Flat 5% for first 5 years 0.25% 0.50% Declining 7,6,5,4,3,2,1 0.25% 0.50% Flat 7% for 7 years 0.25% 0.50% Declining 10,9,8,7,6,5,4,3,2,1 0.25% 0.25% Flat 10% for first 10 years Required Required Pre-Qual Package Go to website and download Commercial Program C - Owner Occupied $500K to $5 million 75% LTV, Purchase and Refinance (Cash Out and Rate and Term) 30 Year Amortization Minimum Score 680+ Industrial, Office Buildings, Office Condo, Single Tenant Medical Condo, Retail, Office/Warehouse, Light Automotive Service Repair Facilities, Auto Tire and Brake Centers, (No underground bays allowed) Buy Downs Available 5 5 – Yr Fixed Balloon 7.02% % 7 7 – Yr Fixed Balloon 7.35% % 10 – Yr Fixed Balloon 7.61% % Pre-Payment Penalty 5 Yr Fixed Flat = 5% for Five (5) years or 1% fee for 5,4,3,2,1 7 Yr Fixed Flat = 7% for Seven (7) years or 1% fee for 7,6,5,4,3,2,1 10 Yr Fixed Flat = 10% for Ten (10) years or 1% fee for 10,9,8,7,6,5,4,3,2,1 DSCR Based on two methods and property must pass both 1. Minimum 1.25 DSCR based on the underwritten EBITA of the small business concern. 2. Minimum 1.00 DSCR based upon the underwritten NOI. The lower of actual vs. Market Rents and the greater of actual vs. market expenses will be used to develop the underwritten NOI. Pre-Qual Package Go to website and download Hotel or Motel $150K to $4 million 1. Maximum LTV 60% - 65% (see below) based upon the current or prospective market value of the subject property. Purchase and Rate and Term Refinance. No ground leases. Cash out for property improvements only. “Excellent” Hotel “Good” Hotel 5 Yr- Fixed Recast 6.75% 5 Yr- Fixed Recast 7.00% Prime Quarterly Adj 6.00% Prime Quarterly Adj 6.25% . ─ Up to 65% LTV ─ Up to 60% LTV ─ Property built within the last 10 years ─ Property built 11-20 years ago ─ Flagged or Boutique in resort area ─ Flagged or Boutique in resort area ─ Limited Service ─ Limited Service ─ Interior Corridor ─ Interior Corridor ─ 125 units or less ─ 125 units or less ─ DSCR > 1.25x in most recent FYE and ─ DSCR > 1.25x in most recent FYE and the interim & positive or stable trends the interim & positive or stable trends 2. The borrower is required to make an equity injection equal to a minimum 20% of project costs or appraised value, whichever is less (15% equity permitted if done with SBA 504 program). Seller financing on full standby, in a junior lien position may be included in the 20% equity, provided the borrower’s cash injection is at least 10%. 3. If the motel is proposed or a start-up, the borrower needs to have the ability to cover at least 50% of the new combined debt service from other independent sources of income. 4. The borrowers are required to have prior motel management experience. 5. The land shall be held in fee simple interest. 6. All FF&E must be included as part of the collateral with a UCC-1 first lien position. 7. A minimum DSC of 1.25x is required. Other: 1. ALC will also consider and evaluate existing motel properties with acceptable debt service coverage of the proposed debt with consistent or improving trends. 2. ALC prefers motel properties that are part of a regional or national franchise. 3. ALC will generally avoid motel properties that: a. are greater than 20 years old without major renovations or have outdated exterior corridors b. have a high number of units (approx. 100+) with a low ADR and average occupancy (i.e. < 40%) c. have 10% or more of the rooms that are non-rentable 4. ALC estimates hotel values as follows: a. NOI @ approx. 35% of Gross Revenues with cap rates in the 11% to 12% range b. Gross Room Revenues multiplied by 2.5 to 3.0 X. Go to website and download Pre-Qualification Package SBA 7A $250,000 To $2 million Small business term loans for the following uses and purposes: • Owner occupied real estate purchases • Equipment purchases • Business Acquisitions - Franchises • Partner buy-outs • Permanent working capital • Furniture, fixtures and leasehold improvements • Refinance existing debt Term: Depends on use of proceeds. Typically seven to twenty-five years Pricing: Prime or LIBOR base plus 2.75% Prepayment None on loans less than 15 years; step down 5,3,1 for loans more than 15 years Penalty Fees: Can be rolled into loan; amount depends on guaranteed portion of loan Guaranty: All 20% or greater owners Collateral: Business assets; personal assets as necessary If the collateral involved is not sufficient and/or if the bank deems it necessary we collateralize the borrower’s residence. Term Sheet Requirements • Executive Summary / Business Plan • Summary of loan amount and proposed use of proceeds • Ownership structure of business • Last 3 yrs of borrower(s) complete personal and business tax returns • Last 3 yrs of business being bought, if applicable • Current operating statement of business • Personal financial statement of borrower(s) • Borrower’s current credit report – mid score 650 or greater • Borrower’s resume SBA 504 $150,000 To $4,000,000 Purchase Maximum 90% LTV Hotels, Motels, Medical, Dental, Mixed Use, Owner User We’ll consider any real estate transaction that is 51% Owner Occupied We typically have sufficient collateral and rarely, if ever take a position on a borrower's residence. Purchase ONLY No Refinances No ground lease Fixed Rate loans available to 90% LTV depending on property type 25/25 Term/Amortization, Floor Rate 6.00% First Mortgage up to 50% LTV Rates O/O Multi-Use Add Ons for Special Use Properties Programs Rates Prime Quarterly Adjust 6.00% . . . 1-Year LIBOR Annual Adjust 6.25% . 3 Year Fixed Recast 6.50% r . 5 Year Fixed Recast 6.75% . 10 Year Fixed Recast 7.75% . Pre-Payment Penalty Options – Add to Rate Prime/LIBOR 3, 5 & 10 Year Declining 5,4,3,2,1 0.50% 0.50% Flat 5% for first 5 years 0.25% 0.50% Declining 7,6,5,4,3,2,1 0.25% 0.50% Flat 7% for 7 years 0.25% 0.50% Declining 10,9,8,7,6,5,4,3,2,1 0.25% 0.25% Flat 10% for first 10 years Required Required Estimated CDC Second Mortgage up to 40% LTV Rates Local CDC’s Establish Rates 20 years fixed 5.65% to 6.25% % 10 years fixed 5.65% to 6.25% % Term Sheet Requirements • Executive Summary / Business Plan • Last 3 yrs of borrower personal and business tax returns • Last 3 yrs of business buying if applicable • Current operating statement of business • Personal financial statement of borrower • Borrower’s credit report – mid score 650+ • Color pictures of property Construction, Improvement and Rehabilitation (Must qualify for our perm loan take out for programs on pgs 5 & 7 attached) $250K to $4 million to 90% LTC First Mortgages We consider construction loans to include ground-up construction as well as purchase or refinances with renovations, expansions, or tenant improvements Maximum Loan: $4,000,000 (including 1st and interim 2nd financing) Maximum LTC: 90% for multi-use properties (excludes start-up businesses) (per SBA 504 guidelines) 85% for special use properties (multi-use start up) 80% for special use properties that are start-up businesses. No Multifamily or MHP’s. *Subject to guidelines below Interest Rate: Multi-use: Prime + 1%, with a 7% floor Special-Use: Prime + 1.5 - 2.0%, with a 7% floor Construction Loan Fee: 2.00% to be retained by ALC Eligible Properties: Multi-use properties and currently acceptable special use properties will be considered if the credit is sufficiently strong to justify the transaction. Must be located in an identifiable MSA. The project must be located in an area suitable for the intended use. Construction costs must be within acceptable norms (no unusual types of construction or elaborate improvements will be allowed). Borrower / Eligible Borrower / Operating Company must have generated a DCR of ≥ 1.25 for the proposed debt over the past two years Operating Company or have acceptable trends if a proposed expansion. Borrower Requirements: Four years of operating history or equivalent ownership experience profitability, retained earnings / equity, and leverage, must all be equal to, or better than, the specific industry’s average. Borrower / guarantors must demonstrate strong credit characteristics including cash flow and liquidity adequate to pay for possible cost overruns of 10% - 15% of hard costs after equity injection Combined outside net worth of the Borrowers: 35% of the proposed loan amount FICO score ≥ 700: For all owners (with more than 20% ownership interest) Bankruptcy: Ineligible if borrower, OC or principal has previously filed for protection under US bankruptcy law Note: Borrowers that do not meet the above criteria may be considered for higher LTV financing by providing additional collateral / contingency or will be limited to a LTV ≤ 80% for multi-use properties and ≤ 75% for special use properties Fund Control / Bond: ALC will select the fund control company. Third Party Guaranty: Costs exceed $500,000 (or 25% of total project cost) ALC requires a third party performance guaranty . Permanent Loan: ALC permanent loan program (maximum LTV of 65% for multi-use properties; up to 60% for special use properties, etc.) remains in effect. Approval by the SBA will be required prior to the ALC construction loan closing. Underwriting: In addition to the normal term loan underwriting requirements a Contractor Qualification statement acceptable to ALC, Fee Summary: The Construction Loan Fee is 2.00%, Documentation Fee is $2,900. The Initial Project Review, Due Diligence, Fund Control and Guaranty are quoted on a case by case basis. Term Sheet Requirements • Executive Summary / Business Plan • Must qualify for our take out permanent program on pg 5 • Last 3 yrs of borrower personal and business tax returns • Personal financial statement of borrower(s) • Borrower’s credit report - mid score 700+ • Source and use of funds • Construction contract • Plans and specifications • Building permits are required • Color pictures of property Bridge and Rehabilitation $2 million to $10 million Property Types: Office, Industrial, Multifamily, Retail, Self Storage, Assisted Living/Congregate, Manufactured Housing (Mobile Home Parks), Hotel/Motel, Special Use (Almost anything except outlet malls and land, especially if the sponsorship is financially strong). Maturity: Borrower must have clear exit strategy Term: 12 to 36 months Markets: Nationwide major MSA’s in cities with 50K populations Loan Size: Minimum $2 million to Maximum $12 million loan amounts Pricing: Prime Plus 2.75% Floor Rate: 7.50% Brokers Fee: Broker adds to above pricing and we pay Broker after closing Max LTV: 70% with minimum DSCR of 1.00+ Or any LTV with a DSCR of 1.40+ Purchases and Refinances we use LTV unless the property was acquired within the last year then we use what the cost was in determining value. We order an appraisal to make sure borrower didn't overpay which is extremely rare, but if borrower did we default to value. Existing hospitality max 50% LTV Occupancy min: 70% occupancy and property must cash flow to 1.00% pre closing or if property cash flows to a min of 1.40+ DSCR then any occupancy applies Exit: Must underwrite to current conventional refinance guidelines at inception or at exit Borrower Liquidity Borrower must have 10%+ liquidity of the loan amount request pre closing Cash or marketable securities. Need strong financial strength. If borrower is not financially strong then review our Hard Money program on pg 11 Close Time: 30 - 45 days Appraisal: We order appraisal and all third party reports Term Sheet Requirements • Executive Summary of Project (Details with exit strategy) • Color pictures of subject property or site • Borrower Personal Financial Statement (Borrower must have 20%+ liquidity pre-closing and twice larger net worth than loan amount requested) • Source and Use of Funds if applicable • Current operating statement and Rent Roll if applicable • Appraisal and or feasibility study if available

Hard Money Bridge and Rehabilitation
$1MM to $5MM
• 10% to 15% Interest Only
• 4+ plus points
• Terms 12 to 36 months
• Appraisal and third party reports required
• Closings as quick as 7 to 10 days
• LTV ≤65%
• Borrower must have clear exit strategy


Term Sheet Requirements • Executive Summary of Project w/ Details of loan request with exit strategy
• Color pictures of subject property
• Borrower Personal Financial Statement
• Source and Use of Funds if applicable
• Current operating statement and Rent Roll if applicable
• Appraisal and or feasibility study if available