Glossary

Commercial real estate broker that represents client in the sale or purchase of commercial real estate property.

Combination 1st lien Bank or non-Bank loan and subordinated debenture provided by a Certified Development Company (CDC) which is 100% guaranteed by the Small Business Administration (SBA). Provided to start-up and existing small businesses for major fixed assets acquisitions, expansion or modernization.

Bank or non-Bank loan provided for start-up and existing small businesses for a variety of loan uses including real estate, machinery and equipment and working capital. The federal government through the SBA guarantees repayment of a portion of the loan to the lender although the borrower remains fully liable for the whole loan (to the lender and/or the SBA for their respective portions).

To offset the costs of its loan programs, SBA charges lenders a guaranty fee and a servicing fee for each loan approved and disbursed. The amount of the fees is based on the guaranteed portion of the loans. The lender may charge the upfront guaranty fee to the borrower after the lender has paid the fee to SBA and has made the first disbursement of the loan. The lender's annual service fee to SBA cannot be charged to the borrower. For more on how to calculate the SBA guarantee fee please visit the BoeFly Intelligence Center.

A mortgage that is second in priority because of the time of recording the mortgage or of the subordination of the mortgage.

A second mortgage is a mortgage on property that is subordinate to the first mortgage. The holder of the prior mortgage (First Mortgage) has priority over the second mortgage lender with respect to proceeds from liquidation of the collateral property pledged for repayment of the loan.

The buying and selling of first mortgages or trust deeds by banks, insurance companies, government agencies, and other mortgages. This enables lenders to keep an adequate supply of money for new loans. The mortgages may be sold at full value ("par") or above, but are usually sold at a discount. Not to be confused with a "second mortgage."

A loan secured by collateral, whereas an Unsecured Loan has no collateral pledged as security for repayment.

A pledge of property to secure performance of a loan or other obligation. A mortgage or lien is a security interest.

One that will retire itself through regular principal and interest payments. Contrast with balloon mortgage or interest-only loan.

(Also called Mini-Storage) provides personal storage for lease by consumers.

(Includes Assisted Listing, Congregate Care, Senior Apartments and Skilled Nursing Centers) multi-residential property specifically designed for care of senior citizens and/or physically disabled persons.

The administrative aspect of a loan from the time the loan is funded. Servicing functions include the collection of timely loan payments, review of financial statements, verification that appropriate insurance is maintained and that real property taxes are paid in a timely manner.

A unanchored shopping center located near an anchored shopping center.

A mobile home consisting of one unit.

The location or place of a plot of ground set aside for a particular type of land use.

A type of senior housing which offers on-site medical care.

An independent agency of the federal government, not to be confused with Small Business Association or variations thereof. The U. S. Small Business Administration (SBA) was created by Congress in 1953 to help America_s entrepreneurs form successful small enterprises. Today, SBA_s district offices in every state offer financing, training and advocacy for small firms. These programs are delivered by SBA offices in every state, the District of Columbia, the Virgin Islands and Puerto Rico. In addition, the SBA works with thousands of lending, educational and training institutions nationwide.

The term is generally used in connection with construction projects to differentiate between the "hard" construction costs such as materials and labor associated with the physical construction from the other costs such as financing, legal, architectural, engineering, etc.

Ownership of a business, with no formal entity as a vehicle or structure.

Number of basis points over a base rate index.

Existence of fire suppression systems in the building.

The income generated on an annual basis from the commercial property is stable, consistent and reliable.

This can refer to either a commitment by a lender to make a loan if certain circumstances occur or borrowed subordinated financing which by its terms requires no payment on the loan while the primary loan is in place.

A string of stores in a commercial area, totaling less than 30,000 square feet, without central leasing, management, or theme.

A property Condition Report that outlines the current structural stability or instability of a property. The report will outline immediate costs needed to repair the property, as well as a maintenance program to maintain the property at its current status.

Describes a town or unincorporated developed area in a close proximity to a city. Suburbs, largely residential, are often dependent on the city for employment and support services; generally characterized by low-density development relative to the city.

The process by which a parcel of land is measured and its area ascertained. The plan typically shows measurements, boundaries, area, contours and easements.