in the USA
Preserving Capital &
Years of Helping
Small Businesses Succeed
Lent To Date
At AVANA, our name says it all. With ancient Sanskrit roots, the term references someone who is a “preserver” or a “protector,” which we are in many ways. First, we help entrepreneurs preserve and protect their wealth through small business real estate ownership. As we support entrepreneurs acquiring large real estate investments by providing purchasing and refinancing options, we also help create and maintain jobs all across America and spur growth in local economies. In terms of investing, we additionally provide opportunities for accredited investors to grow their wealth via our mortgage fund which is similar to marketplace investing, but we don’t invite investors to join us until after we have funded a project.
Our approach makes the process hassle-free and enables accredited investors to take advantage of institutional-quality returns. Guided by our sincere desire to preserve and protect, our primary objective as a private commercial real estate lender is to manage risk. We began under the name Crosspoint Capital in 2002 working closely with Southwest Capital Bank, and, with the support of the Levenson family, we set up our own fund as AVANA Capital in 2010. Since our inception, we have funded over $850 million in real estate transactions in SBA, construction, and bridge lending programs and continue to pursue the same strategy of supporting small businesses and local economies by utilizing investor and institutional capital through our mortgage fund.
There are more than 28 million small businesses in America, according to the latest statistics from the U.S. Small Business Administration (SBA). Small businesses provide 55% of all jobs in the country and are responsible for creating 66% of all new jobs that are created. Moreover, they generate 54% of nationwide sales, which means these small businesses and the entrepreneurs who operate them are the lifeblood of the economy. By investing in them, we’re investing in the communities and the people they serve.
Unfortunately, the small business community has been grossly underserved by traditional bank loans. Oftentimes, entrepreneurs can only obtain 50-60% of the funds they need to invest in the real estate required to grow. The SBA and USDA programs provide fantastic opportunities for small businesses to obtain the additional funding they need, while at the same time enabling access to lower interest rates. AVANA provides small-business owners with the capital they need to take their companies to the next level and helps facilitate funding through the government guaranteed programs and institutional partners. We’re proud to help companies grow because we understand the valuable role they play in the American job market and economy.
AVANA funds each commercial real estate loan after an exhaustive due diligence process and, on loans that are eligible under the SBA program, borrowers go through further scrutiny with the SBA to ensure only highly-qualified applicants make it through the screening process prior to funding. All loans are funded through capital invested by AVANA’s co-founders, Sundip and Sanat Patel, along with their institutional partners. Once the loans are seasoned for a few weeks or months, the portfolio of loans is made available to US based accredited investors, US and non-US family offices, and global pension fund investors.
AVANA's prime directive is to preserve capital and create growth. Hence, our approach to lending is to focus on niche industries where we have deep expertise and understand the risks. We believe it is better to be good at one thing than to try to become an expert in all industries. AVANA invests its capital in small and midsize businesses in the United States that create or maintain jobs in their communities, so our funds are not deployed for investor-owned commercial real estate transactions. AVANA provides a combination of short-term and long-term financing options to its borrowers. These lending programs match the investment maturities that our investors require over a 12-month or 60-month term. AVANA focuses on seasoned entrepreneurs from a variety of business types, locations and property types and helps them with owning their own commercial real estate through SBA financing, bridge financing, and construction financing. This allows entrepreneurs to obtain the capital in a way that best meets their requirements.
AVANA reviews the information provided in the initial owner-occupied commercial real estate loan application. The review process adheres to underwriting policies in accordance with the Risk Management Association standards of conduct and includes gathering various types of financial documents.
After the initial review, we issue a term sheet outlining the main points of our offer, including the interest rate, fees, prepayment penalty, and any other relevant conditions for the funding the loan.
Once the term sheet is accepted, our underwriters and the Chief Credit Officer will embark on substantive due diligence and produce a thorough risk management report that will request approval from the CEO, the Chief Credit Officer, and the lead underwriter.
For SBA loans, while we are conducting our full underwriting, we work together with the necessary entities to obtain an SBA authorization. This authorization documents the SBA’s approval of the loan and outlines their requirements.
When all the credit-level discussions have been approved by the investment committee, a commitment letter indicating our our willingness to provide a loan, as well as the terms of the loan, is issued upon the client’s request.
AVANA counsel prepares the loan documents. Borrowers execute and sign all loan documents. The mortgage documents are recorded, and title policies are issued.
AVANA wires all funds to the escrow company to fund the loan. With the loan successfully closed and funded by AVANA, the borrowing company is free to grow, new jobs are established, and the local economy is bolstered.
AVANA Capital's lending team brings more than 65 years of combined credit experience in small business loans with real estate. Therefore, we are experts in debt instruments, credit analysis, fixed-income investing, and mortgage portfolio management. Based in both the United States and the Middle East, AVANA's team is able to provide lending solutions to a wide variety of clients.
AVANA specializes in guiding borrowers through every step of the small business lending process--from the loan origination and feasibility study phases to the closing and beyond. Our team members work to ensure that loans are closed quickly, smoothly, and with the most favorable possible rates and options for each borrower.Meet our team and learn how their experiences enable us to provide outstanding services to our clients.
“I think our greatest asset is our employees. Sanat and I are truly blessed to be able to work alongside some of the smartest and nicest people we know. We believe clients, brokers, community banks, CDCs, and investors would want to do business with AVANA Capital because, collectively as a team, we are a strong value proposition for their financing or investment goals. Our values are embedded in the way our employees conduct themselves and, while we consider life a work in progress, we continually strive to stay true to our values.
Our values will not change from time to time, in varying circumstances, or employee to employee, but rather they serve as the foundation of AVANA’s culture.”
– Sundip Patel (Founder & CEO)
We strive to provide the best risk assessment on every transaction, so we can make the most informed decision for our investors and lending partners and also for the benefit of counseling our borrowers or clients. We are continuously striving to put the best practices in real estate mortgage banking in motion.
We would rather stick to what we know than to venture out and work on transactions that we have little to no experience in. We have to know our limits and be honest with ourselves, our investors, our clients, and our partners. We believe being honest means knowing what our limitations are as a team, and as a company, in the U.S. government guaranteed lending market.
We believe this is a value that is innate. We are lucky to have staff that work and live by this code of conduct.
We will always put our clients best interests first, which requires us to be responsive and accessible to their financing needs.
We believe the foundation of any employee is their family, and as such, we strive to make sure there is a proper work-life balance.
Irrespective of our differences, our faith guides us. We live by the credo: “Treat others as you would like to be treated.”