The constraint
Two green card holders had limited financing options and needed a structure that kept cash out of pocket to a minimum.
What Duneland arranged
Duneland secured a $2.2M conventional acquisition loan on a 25-year amortization, plus $750K of working capital, giving the buyers long-term financing while preserving liquidity after closing.
Duneland reports arranging conventional bank debt for two green card holders whose financing options were limited. The acquisition loan and working-capital financing are separate reported components. The case shows the route used for those buyers; it does not establish a citizenship or residency policy for another lender or for today’s SBA program.
What the published case does not establish
The purchase price, exact buyer contribution, interest rate, maturity date, collateral, guarantees and working-capital terms are not published. The case does not identify whether real estate formed part of the transaction. A 25-year amortization is not evidence of a 25-year contractual term.
Applying the questions to your transaction
What to examine in a similar deal
The following is general financing analysis, separate from the historical facts above. It does not describe additional work or terms verified in this case.
Read amortization and maturity separately
Amortization describes the repayment schedule used to calculate installments; maturity is when the obligation becomes due. Ask for both in an actual proposal, together with any remaining balance at maturity. This case reports the amortization only, so its balloon balance and payment cannot be calculated from the published facts.
Assess the cash left to operate the business
For permanent working-capital loans, OCC guidance asks whether cash flow after debt service, capital expenditure and operating needs is sufficient. A useful acquisition model therefore includes ongoing operating needs as well as the closing payment. The reported $750K is not a universal working-capital allowance for packaging businesses.
Reference: OCC: Commercial Loans, examination procedures 10–11, pages 14–15.
Compare proposals using their actual repayment terms
OCC guidance asks whether term-loan payment terms fit the financed assets and whether operating cash flow supports scheduled amortizing payments. Request the proposed rate, schedule, maturity and conditions before treating a long amortization as an affordable or available financing option.
Reference: OCC: Commercial Loans, examination procedures 10–11, pages 14–15.
Questions to bring to a financing review
- What are the full purchase and operating cash requirements, beyond the headline price?
- How much buyer cash is available for closing, and how much needs to remain liquid?
- What are the maturity, amortization and repayment conditions of each proposed facility?
- Which lender-specific borrower, collateral and documentation requirements remain unresolved?
Start with a brief transaction summary and the figures you have. Duneland can identify the information needed for the next discussion; a preliminary review is not a lending decision.