InterBay Funding Corp.1

We have access to the Capital Loan Program Financing (Equity Lending)

• Institutional lender specializing in small commercial / income properties

• Unique programs - meet the needs of small business owners and investors

• Equity lender / Credit lender

• Commercial real estate secured loans only

InterBay Funding Corp.2

Traditional Money Sources

Small Loans

– Banks

– Credit Unions

– Trust Companies

– Mortgage Bankers

– Investment Bankers

– Private Money

InterBay Funding Corp.3

Capital Loan Program Funding Institution`s Place

Capital Loan ProgramCapital Loan ProgramTraditional Lenders Private Money

InterBay Funding Corp.4

Small Commercial Lending ArenaTraditional Lenders

• Best Rates

• Conservative LTVs

• Strong Credit

• Full Documentation

• Environmental Phase 1

• Marketable Properties

• High Commitment Fees

• 1 to 5 Year Terms

• Loan Committees

• Cross Collateralization

• Strong DSCR (i.e. 1.40x or more)

The Capital Loan Program Private Money

InterBay Funding Corp.5

Traditional Lender Requirements• Bank Credit Application• Background Information Sheet• State of Personal History• Management Résumé• Personal Financial Statement• T4, T1, Notice of Assessment• Financial Information: Business, Personal,

Affiliate Tax Returns• Copy of Purchase Agreement• Lease Agreement• Copy of Business License• Equipment Listing• Schedule of Business Debt• Environmental Phase 1 or 2• Insurance Information• Operating Statements• Rent Roll• …and more…

InterBay Funding Corp.6

Small Commercial Lending ArenaTraditional Lenders

• Best Rates

• Conservative LTVs

• Strong Credit

• Full Documentation

• Environmental Phase 1

• Marketable Properties

• High Commitment Fees

• 1 to 5 Year Terms

• Loan Committees

• Cross Collateralization

• Strong DSCR (i.e. 1.40x or more)

The Capital Loan Program Private Money

• High Interest Rates

• LTVs Vary

• Fast Closings

• All Credit Considered

• Minimal Documents

• Environmental Varies

• All Property Types

• High Commitment Fees

• Short Term Loans

• Inconsistent

• Temporary Solution

InterBay Funding Corp.7

• Intermediate Rates

• Higher LTVs

• Quick Closings

• Wide Credit Range

• Limited Documents

• Environmental Fee

• Many Property Types

• Variety of Products

• No Cross Collateralization

• Reasonable DSCR

• Commercial is All We Do

• Wholesale Dedicated

Small Commercial Lending ArenaTraditional Lenders

• Best Rates

• Conservative LTVs

• Strong Credit

• Full Documentation

• Environmental Phase 1

• Marketable Properties

• High Commitment Fees

• 1 to 5 Year Terms

• Loan Committees

• Cross Collateralization

• Strong DSCR (i.e. 1.40x or more)

Private Money

• High Interest Rates

• Low LTVs

• Fast Closings

• All Credit Considered

• Minimal Documents

• Environmental Varies

• All Property Types

• High Commitment Fees

• Short Term Loans

• Inconsistent

• Temporary Solution

Capital Loan ProgramCapital Loan Program

InterBay Funding Corp.8

Who Needs Capital Loan Program?Clients underserved by traditional lenders:

– Inability / Unwillingness to provide business and personal documentation

– Fast Service

– Too much credit exposure to the bank

– Under bank’s minimum loan amount

– Significant cash out (Equity Take-Out)

– Transactions with subordinate debt

– Changes in bank lending philosophy

InterBay Funding Corp.9

Who Needs the Capital Loan Program?As an alternative to Private Money Sources:

– Need Higher LTV

– Want Lower Fees

– Want / Need benefit of lower interest rate

– Needs longer term

– Improved Credit

InterBay Funding Corp.10

The Capital Loan ProgramLoan AmountsLoan Amounts

$100,000 - $1,200,000$100,000 - $1,200,000

• Multi-Family (5+ Units)

• Office

• Retail

• Automotive

• Rooming House

• Hotels / Motels

• Mixed Use

• Light Industrial /Warehouse

• Self Storage

• Carwash

• Bed & Breakfast

• Funeral Homes

• Restaurants

• Daycares

• Resorts

• Campgrounds

• Mobile Home Parks

Property Types

InterBay Funding Corp.11

Non-Eligible Properties

• Traditional Churches (no alternative use)• Raw Land and Farms• Construction / Interim Financing• Business Loans• Health Care Facilities that dispense medications

(assisted living, hospitals, nursing homes)

• Gas Stations• Adult Entertainment Facilities

InterBay Funding Corp.12

Deal View #1…

• Mixed Use - $145,000• A+ Credit Borrower• LTV 80%• Owner Occupied• Broker visited with

marketing material• Closed in 38 days

InterBay Funding Corp.13

Deal View #2…

• Automotive - $435,000 • Owner occupied• Bank not willing to consider

due to possible environmentalconcerns with this type of property

• Broker arranged referral relationship with a local bank branch

InterBay Funding Corp.14

Deal View #3…

• Office / Retail - $606,750

• Significant cash-out

• Client did not have financials required at bank

• Owner received advertisement from broker

• Deal closed in 31 days

InterBay Funding Corp.15

Deal View #4…

• Retail / Office - $920,000• Borrower’s credit 685• LTV 75%• Investment property• Expedited service from Lawyers • Closed in 45 days

InterBay Funding Corp.16

Deal View #5…

• Hotel / Motel - $1,000,000• Refinance – cash out to purchase another

property• Referred to broker by real estate agent• Credit improved from A- to A in process• Appraisal came in higher than anticipated

(+195k)• Deal closed in 59 days