Glossary

A structure used primarily for the carrying on of business.

A business actively involved in conducting business operations now, or about to be located on, real property owned by an eligible passive company (EPC).

Periodic expenses necessary to the operation and maintenance of an enterprise (e.g., taxes, salaries, insurance, maintenance). Often used as a basis for rent increases.

An O & M Plan is generally put into place by businesses with existing or potential environmental concerns such as asbestos, lead contamination, etc. It sets forth the guidelines for identifying, monitoring and dealing with existing or potential environmental problems as well as complying with governmental regulations.

Securing a completed mortgage application from a commercial or residential borrower.

An up-front fee charged by a lender for processing and committing to make a loan. Origination fees are quoted as a percentage of the total loan (ex. 1% of $200,000 = $2,000).

The amount of money that the business owner takes out of the business. When analyzing a small loan request, lenders will often review the owner's personal living expenses to determine the minimum salary or draw that is required by the business owner(s) to cover personal expenses and this amount, at a minimum will be deducted when determining Debt Service Coverage for the business loan.

A property that is actively occupied by the current owner.