Effective 3-23-2010:

CMI Capital Group announces our client’s access to the following loan types:

1 – 250K BOND PROGRAM funding now:

BOND PROGRAM funding now:

Loans from $100 Million- $ Billions

Bonds are wrapped with life insurance to guarantee the investor’s principle and first two year’s interest.

-    Will consider 100% funding.

-    Full disclosure and transparency for clients

-    Lender requires client to fly to Chicago to meet him at client’s expense

-    Rates from 6-10%

-    Ten year bond

-    Non-recourse

-    Interest only loan, payments start at year 3

-    Requires a $400,000 fee to be paid upon acceptance into the program

Process:

1.       Application packet submitted to bond underwriters.  YOU MUST SHOW PROOF OF $400K FUNDS AT THIS TIME.

2.       Initial underwriting to determine the capacity of the client to perform and the bonds to sell

3.       Initial conference call

4.       Client flies to Chicago to meet investor

5.       Term Sheet issued and $400k is paid

6.       The bond group will put the packet together, combining the client’s business model with the SLS collateral.  This package will be registered and then presented to a buyer

7.       Loan funds in one tranche at the end of the bond issuance process.  (Exception – larger loans may fund in multiple tranches)

2 – European Trust Fund 100% Financing:

European Trust Fund Offering 100% Financing requiring Equity Partnership

Loans from $15,000,000 - $100,000,000.00

1. Will consider construction, residential developments, refinance operating businesses, acquisitions, permanent financing, energy, technology, films and entertainment

2. Will consider start up and international businesses

3. Criteria desired

       a.  Strong pro-forma with profitable project within reasonable amount of time per industry standards

       b.  Project will increase area employment and improve area social atmosphere

       c.   Project has strong management team and proven successful track record

4. Collateral

       a.  Client provides Credit Enhancement Standby Letter of Credit (SBLC) as collateral for European Bank issuing a Financial Instrument/Bank Guarantee (BG) to the Funding Group in the USA; acting as insurance for the loan.

       b.  NOTE:  SBLC is MT760 Swift System Credit Enhancement only.  Funds do not leave client’s bank.  

       c.   During funding period, collateral is the BG.  After funding is complete, BG is dismissed and project becomes the collateral.

       d.   No interest is accrued during funding period.

5. Steps:

       a.  Conference call with Client.  Fee Agreement put in place.

               i.    Lender does not charge application or due diligence fee.

       b.  Loan Package submitted to Lender accompanied by Client’s SBLC Preapproval Letter. Client also obtains verbiage or text that his bank will accept for the SBLC.

              i.    SBLC cannot be drawn off of a business or corporate bonding program, or Line of Credit.

             ii.   SBLC is required from a “Top Tier International Bank” using the Swift Method of Authenticity and Verification.  

            iii.  THIS BANK AND TEXT MUST BE APPROVED by Trust Fund bank before moving forward.

Funding facility funds 25 business days after SBLC is released

3 – Asset Based Lending:

This type of loan is secured by accounts receivables, equipment leases, contracts, artwork, stocks, stand-by letters of credit, bank guarantees…almost any tradable financial instrument or commercial real estate

-   These loans take 2-6 weeks to fund and are based upon the asset for terms to be determined.  

-   Upfront fees vary with type of asset used and loans are approved case by case.

-   Broker fees vary from 1-5% depending on the asset used.

-   Assets are used as collateral.

4 – Joint Venture Partner/Equity Partner:

Most equity deals are taking 120+ days to close.   Most of the equity deals we’re seeing are structured like a typical loan with loan payments in exchange for ownership in your company.  Example:  they will lend you the total amount of your project less your “skin” and expect interest payments from you for the duration of the project. OR YOU CAN ‘BURN DOWN’ the equity during the duration of the loan.    ((Terms vary widely and are determined when the loan is negotiated.))

The important thing to remember for private lenders is that we are working with ‘their’ money and on ‘their’ time schedule.  We can anticipate 90-120 days closings but sometimes they happen in 30-60 days.   Also, most private investors want to see you put 5-10% of your own money into the project.  This isn’t always mandatory; we won’t know until “we throw it on the wall and see what sticks” with the investors.

5 – Private Investor/Lender:

Many of our loans are funding through private investors.

-   Typical rates for loans are libor +3 or 4%

-   1-4 points to the lender plus broker points.

-   Upfront fees range from $0 – 1% of the project.

-   Most loans are taking 90-120 days to close and most fees are paid at closing including broker fees.

-   100% loans are no longer available through any funding other than the humanitarian funds below.

Note for all programs:

Financing is not guaranteed.  The Borrower understands and agrees that this information is not a guarantee for funding and that the terms of all loans will be negotiated with lender.  CMI is a financial conduit between lenders and borrowers and it is our job to introduce lending sources to clients.  Full representation of terms is between lender and borrower but this representation is done to the best of our knowledge.  Please contact us today for more information!