Knowing the different types of third party reports your business must undergo before it can officially apply for a USDA Business and Industry Loan is an important first step.
Those third party reports include:
At North Avenue Capital (NAC), we are dedicated to helping you strengthen your foundation and providing you with the resources to allow your business to grow. In this guide, we break down everything you need to know about appraisal reports.
When applying for a USDA B&I Industry Loan, a Fair Market Value Appraisal serves as a way to assess how much a property is worth. This process ultimately drives how much a lender (NAC) is able to lend you. There are three parties involved in these appraisal reports. They are as follows:
An appraisal report typically takes between three and five weeks to complete.
2. The borrower sends the lender (NAC) a deposit to hire the appraiser. Borrowers must pay the lender before the appraisal company can begin.
3. It’s important to note, this process includes a lot of interaction between the borrower and the appraiser. This can include but is not limited to:
There are two types of commercial real estate appraisal reports. They can include:
2. “As Built” Appraisals – In this report, construction bids, drawing/plans, material costs, etc. are collected, and the appraiser determines the as-built value of the real estate improvements. The lender (NAC) can then lend depending on the as-built value. Project examples include:
Machinery & Equipment (M&E) appraisals take a look at current the market conditions and asses the condition and remaining useful life of each piece of equipment which determine the overall value. Which in turn, this will determine the total amount of collateral coverage the M&E provides towards the loan.
Asset classes can include:
North Avenue Capital encourages you to get in touch with one of our loan specialists before you begin the process of completing Fair Market Value Appraisal.
NAC is ready to help you learn more about how to fund your next project today! To get in touch today, we encourage you to fill out the attached form HERE.