So every once in a while we get a transaction that really is pretty straight-forward and no exciting plot twist is involved. This environmental company out West was one of these projects, as there was really nothing I can think of that was out of the ordinary other than this was a pretty big loan.

This environmental company’s main income source is providing SWPPs. Ok, what the heck is a SWPP? Funny, I thought the same thing so I googled it, and a SWPP is a Storm Water Pollution Prevention Plan and is needed for all new construction sites. It serves as a foundation to ensure that pollutants like chemicals, debris, and sediment from construction sites don’t end up in the drinking supply and also comply with environmental regulations. They also then have a fleet of environmentally street sweepers that keep these construction sites compliant throughout the project. This particular company happens to be in a region of the United States that is growing rapidly growing and building. Needless to say, they are pretty busy.

How we structured this is with our famous “Pari-Passu” loan program where we take a borrowers 7A exposure limit and max them out at $5M. Then we add a second note that we fund conventionally for additional capital. For your viewing pleasure here is a breakdown of the capital stack below:

$7,325,000 Total Project Cost

• $4,500,000 SBA 7(a)
• $500,000 SBA Express LOC
• $1,575,000 Conventional Second (Pari-Passu)
• $750,000 Equity Injection