Initial

Loan

Site

Loan

Third

Due

Loan

Offer

Application

Visit

Commitment

Party

Diligence

Docs

Closing

Period:

1-2 days

1-2 days

1 week

1 week

4 weeks

same

1 week

Cumulative:

2 days

1 week

2 weeks

6 weeks

6 weeks

7 weeks

8 weeks

Initial Offer:

As a result of Sterling Commercial Capital's no-cost evaluation of a preliminary loan submission, this letter of initial interest briefly outlines possible loan amount, rates, terms and conditions. The initial offer has no time limit or expiration.

1 to 2 days after receipt of basic loan information

Loan Application:

If the terms of the initial offer are agreed to by the Borrower, a formal Loan Application is generated which incorporates the terms included in the initial offer. The Application creates a formal relationship between Lender and Borrower, and involves a signed application and small retainer, which pays for preliminary due diligence, credit and other services, as well as the first site visit. Generally, the Loan Application expires a week after its issue.

1 to 2 days after being advised that the initial offer is acceptable.

Site Visit:

Takes place shortly after receipt of a completed and signed Loan Application along with the application fee, certainly with a week. Involves a trip to the project site, meeting with the Borrowers, survey and evaluation of the local market, inspection of the property, and other local due diligence activities.

Takes place during the week after receipt of signed Application and fee.

Loan Commitment:

A contingent commitment to make the loan, includes definitive loan amount, rates, terms, and various conditions, which, when satisfied, formalizes the loan transaction. Generally, the conditions include a satisfactory appraisal, environmental assessment and engineering report on the property (ordered by the Lender), title report, survey, certification of borrowing entity, among the many conditions. Acceptance of the Loan Commitment requires a good faith deposit of a Commitment fee, and other subsequent deposits to fund the third party reports and subsequently the legal retainer. The Commitment expires within a week after its issue.

Usually issued within a week after the site visit.

Third Party Report Period:

Appraisals usually take up to 4 weeks; Phase 1 environmental assessments and property condition engineering assessments are usually completed within 2 weeks; all are commissioned and carried out during the same period. Formal due diligence is undertaken by Sterling during the same time frame.

Commissioned and starts within a week after Commitment is accepted, and all deposits received; usually takes up to 4 weeks.

Final Due Diligence:

After receipt of all third party reports, title search, property survey, and various other informational and legal documents, the transaction is reviewed, revised, updated, modified if necessary, and preparations are made for the Loan Closing. A final site visit takes place.

This can take between 1 and2 weeks, depending on the results listed above.

Loan Documents:

Documents are issued by the Lender’s closing attorney once all open items are resolved. The closing attorney needs no more than a week to issue documents, secure local counsel for Lender, negotiate issues and revise documents, assist the Borrower’s attorney with local opinion letters, etc.

The closing date is finalized during the final week.

Loan Closing:

Ten days after all documentation has been Received.