Celtic Bank Closes $1,261,000 SBA 7(a) Loan for FedEx P&D Acquisition

Columbus Chamber
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Celtic Bank is pleased to announce that it successfully closed and funded a $1,261,000 SBA 7(a) loan for the acquisition of a FedEx P&D route out of Tennessee. The loan proceeds were used to finance the purchase of the company and all assets, including the fleet of vehicles. The loan was structured as a 10 year term & amortization with no prepayment penalty, and was closed in time to take advantage of the benefits in the December 2020 Economic Relief Bill (3 month P&I payment relief). The small business applicant was required to inject 10% of the total project, the Seller held one Promissory Note for 9.6% with a two year standby period, and a second Promissory Note of 3.65% on Full Standby. The Loan approval was based on the small business applicant’s strong outside income, strong year-end 2020 debt service of the business, excellent credit reports for the applicants, and a signed employment contract for the existing full-time manager. This loan was largely unsecured (collateral coverage of 11%), but Celtic Bank was able to mitigate those concerns by the above strengths. The loan was structured by Nathan Ray, VP of Business Development in our Columbus, Ohio Office.

The 7(a) Loan Program is SBA’s primary program for helping start-up and existing small businesses, with financing guaranteed for a variety of general business purposes. SBA does not make loans itself, but rather guarantees loans made by participating lending institutions. In this way, taxpayer funds are only used in the event of borrower default. This reduces the risk to the lender but not to the borrower, who remains obligated for the full debt, even in the event of default.

About Celtic Bank: Headquartered in Salt Lake City, Utah, Celtic Bank was named the 4th largest SBA lender in the nation for FY 2020 in total approved dollars. Celtic Bank is a nationwide lender and leading provider of USDA loans, SBA 7(a) loans, asset-based loans, factoring services, commercial real estate loans, and construction loans. For more information, please visit www.CelticBank.com.

Nathan Ray MBA
Vice President Of Business Development – SBA & USDA at Celtic Bank