SBLC Funding

SBLC Premium Plus Program By Mountain States Lending

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Commercial real estate lending

Mountain States Lending provides funding against "Letters of Credit"
Often referred to as:
SBLC - Stand-By Letter of Credit
LOC   - Letter of Credit
 ILOC - Irrevocable Letter of Credit

We can also provide funding for your Bank Guaranty (BG) and/or Medium Term Note (MTN) - Typically with the same terms and conditions of our SBLC Premium Plus Program.

SBLC Premium Plus Program Highlights

• 3.5% to 5.5% Simple Interest - Paid Annually in Arrears
• Can Fund up to 93% of Face Value of SBLC
• Typically $50MM Minimum with no Maximum (Please see our Asset Leverage Product for smaller Funding Limits)
• Can Increase your ROI Significantly
• SBLC Must Be From an "A" Rated Bank or Better - "AA" Rated Preferred
• Must be an Unconditional Demand "Letter of Credit"
• SBLC Must Have an "Evergreen Clause"
• Fast Process - 15 to 30 day turn time
• No Prepayment Penalty
• No Project Qualification
• No Experience, Credit, LTV or Documentation Requirements
• You Continue to Earn Interest on your Asset
• Your Anonymity and Privacy are Protected

The Process

1. Contact your bank and negotiate for a discounted SBLC
2. Provide Mountain States Lending (MSL) documents to obtain LOI (See document list below)
3. SBLC is reviewed for compliance
4. LOI is issued. You accept LOI and execute a Service Agreement and wire due diligence deposit
5. Provide MSL documents to obtain funding (See document list below)
6. Funder is scheduled - you meet with the Funder and sign loan documents
7. SBLC is blocked
8. SBLC is funded
9. You fund your project
10. You complete your project, pay off the loan and repeat the process if desired

Document List

To Obtain LOI and Commitment Letter:

1) MT-799 (Bank authentication and disposition of SBLC instrument)
2) Brief letter signed by the signatory stating they request a loan against the subject SBLC - This letter also needs to include the following:
   a. Name of the person to correspond with if different than the signatory
   b. Company name, address, phone and fax numbers and e-mail address
   c. Reference the instrument type, amount and issuing source

To Obtain Funding:

1) Customer Information Sheet (CIS) - a blank CIS form is available under our “Forms Page” if needed
2) Color copy of the passport of the signatory
3) Custodial SKR or BCL (only if requested)
4) Original executed Service Agreement (This document will be provided at issuance of LOI)
5) Wire due diligence fee


SBLC Funding Benefits for:

Your Bank

• Allows your bank to continue to leverage (10 to 1) your assets in the form of additional loans, fees and interest. (This does not happen when you withdraw your money out of the bank to directly fund your project)
• Fee income deriving from providing the SBLC
• Providing an SBLC is an off balance sheet transaction for the bank

Fund Managers

• Lowers your cost of funds which increases your ROI (Obtain the SBLC at a discount and borrow against it up to 93% of face value at below market rates)
• Lowers your risks when funding your client’s projects
• Leverage your assets to fund more projects
• Continue to earn interest on your assets
• When your client’s project pays you back, you can repeat the process

Developers

• No project qualification - no pre-sales required
• No experience, credit, collateral, loan amount, LTV or documentation requirements
• No 3rd party reports - appraisals, environmental, feasibility, etc.
• No prepayment penalties
• Lowers your cost of funds which increases your ROI (Obtain the SBLC at a discount and borrow against it up to 93% of face value at below market rates)
• Lowers your risk when funding your own projects
• Leverage your assets to fund more projects
• Minimizes the long term use of your liquid resources (no down payment tied to a project)
• You continue to earn interest on your assets
• When your project pays you back, you can repeat the process

To find out how Mountain States Lending can help you with any of your funding needs or for specific questions, please call or e-mail us at:

    Mountain States Lending        Office: 303-740-7724
    7435 E. Peakview Ave.           Fax     303-740-7950
    Englewood, CO 80111            e-mail  mark@mountainstateslending.com

    Mark E. Massa
    President