Commercial Real Estate Loan Guarantees Consulting and Facilitation
Commercial Real Estate Loan Guarantees Consulting and Facilitation
Good assets get declined when a lender cannot carry the risk at the requested size or tenor. A partial loan guarantee can bridge that gap. It does not remove the need for equity, cash flow, or controls. It reallocates risk so a bank can approve the loan at workable pricing and with a clean path to close. We advise on structure and then run a controlled process to secure the guarantee, subject to underwriting.
Where guarantees make a difference
- Owner-occupied purchases or build-to-suit with strong operating cash flow.
- Transitional income assets with lease-up or light capex and proven sponsor.
- Construction with defined budget, GMP contract, and completion support.
- Small and mid-balance loans where life company or CMBS is not available.
What we deliver
- Structure paper: guarantee type, coverage mechanics, reserves, covenants, and claim triggers.
- Underwriting model: DSCR, debt yield, LTV or LTC, sensitivity to rate and vacancy, and covenant headroom.
- Credit memorandum: asset, market, sponsor, business plan, risks, and mitigants consistent with the guarantee.
- Terms matrix: lender loan terms aligned with the guarantee, fees, premium, step-downs, and reporting.
- Process control: controlled outreach, written Q&A, negotiation of indemnities and subrogation.
- Closing plan: CP checklist, document list, perfection steps, and timeline to funding.
Indicative guarantee term sheet
| Item | Range or term | Notes |
|---|---|---|
| Coverage | 80%–90% principal loss after liquidation, or 10%–20% funded first-loss tranche | Chosen at underwriting |
| Loan size focus | USD 1m–25m per asset | Larger by syndication |
| Tenor | 3–10 years; co-terminous with loan or step-down at stabilization | Extensions priced |
| Pricing of guarantee | 1.00%–3.00% p.a. on covered balance | Upfront or periodic |
| Core covenants | DSCR 1.20x–1.35x, debt yield floors, leasing milestones, liquidity minimums | Borrower certificates quarterly |
| Reserves | TI/LC, capex, taxes and insurance, interest carry as applicable | Controlled at lender |
| Claims | Payout within 30–60 days of complete claim | Subrogation to guarantor |
Final terms depend on credit approval, collateral quality, and documents.
Process
Eligibility at a glance
- Property types: industrial, medical office, self-storage, small balance multifamily, grocery-anchored retail. Office case by case.
- Sponsor: credible track record, liquidity, and net worth relative to loan size. Bad-acts carve-outs apply.
- Equity: 10%–20% cash in. Exceptions require strong balance sheet or completion support.
- Reports: appraisal, Phase I, PCA as needed. Rent roll and T-12 for income assets. Budget and schedule for construction.
Frequently asked
Does a guarantee replace equity
No. It reallocates risk but does not fund equity.
Who pays the premium
Usually the borrower. It can be shared or capitalized if the lender permits.
How fast can this close
Clean files can move in weeks. Legal, liens, and enhanced KYC add time. We set a realistic schedule before launch.
Is this compatible with SBA or USDA programs
Yes for eligible owner-occupied or rural cases. We also work with private guarantee providers where agency programs do not fit.
Is recourse required
Sponsor indemnity to the guarantor is standard. Full recourse to the borrower for fraud, waste, and similar matters remains.
Request a guarantee consultation and facilitation plan
Send the pro forma, reports, and sponsor pack. We will confirm bankability, select the guarantee structure, and run the process to secure coverage subject to underwriting.
Start the ProcessThis page is informational. Any engagement and any guarantee are subject to independent credit approval, KYC and AML checks, third-party reports, and executed documentation. Coverage, pricing, and covenants vary by asset, sponsor, and market conditions.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
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