In May 2010, ValueXpress obtained a $485,000 first-mortgage loan commitment with its affiliated bank, Country Bank, based on the SBA’s approval of a 90% guarantee under the Jobs Act program, just prior to the expiration of the stimulus program on May 31, 2010. The borrower, a dentist, owns a 1.5-story medical office building that was originally constructed in 1951 (gut renovated/converted in 2007). The facility contains 3,100± square feet of gross building area that is in very good overall condition, located in Bergen County, NJ.
Once the transaction was committed, Country Bank obtained an environmental report that indicted that an underground heating oil tank may have been abandoned on-site, and after additional research, the probable location of the tank was found. A contractor was hired to excavate and remove the tank, but on excavation, it was discovered that the tank had leaked and contaminated the soil.
“We then began assisting the borrower in remediation, collecting bids for soil removal and helping the borrower apply for reimbursement from a State of New Jersey remediation program,“ said Michael D. Sneden, Executive Vice President at ValueXpress. “In addition, we petitioned the SBA to extend its commit to preserve a 90% guarantee and fee waiver until December 31, 2011 and the SBA concurred.”
In July 2011, the borrower finally received a “No Further Action” letter signaling the remediation is complete. The loan is now scheduled to close in September under the terms of Country Bank and SBA commitments from May 2010.