Small business owners often struggle to find needed financing as traditional lenders like banks and credit unions remain hesitant to lend. Non-bank lenders Like Fountainhead Commercial Capital seek to provide an alternative funding source to help small businesses overcome that hurdle.
Note: Fountainhead is currently not accepting applications. To apply for funding, click here.
The company primarily focused on helping entrepreneurs secure SBA loans, with a particular concentration on SBA 504 and SBA 7(a) loans. It also offered conventional loans, and all lending products were angled for owner-occupied commercial real estate.
This Fountainhead review explores how it worked, including the benefits, drawbacks, and application process. Specifically, we’ll answer these questions and more:
Fountainhead Commercial Capital is a direct commercial lender dedicated to providing financing solutions tailored specifically for small businesses. Their focus lies in supporting entrepreneurs and small business owners looking to expand, invest in new equipment, or acquire commercial real estate.
While many lenders and lending marketplaces offer various funding options, Fountainhead aimed to simplify the process by focusing on three loan programs: SBA 504 loans, SBA 7(a) loans, and Conventional Loans for commercial real estate.
Its approach embraces the entrepreneurial spirit by recognizing the potential within each business owner’s vision. Their financing solutions act as catalysts for turning entrepreneurial dreams into tangible realities, fostering innovation and economic development. With that in mind, the company specifically focused on relationship-building with their small business clients.
The business financing veteran Christoper Hurn launched Fountainhead in 2015. It’s based in Lake Mary, FL (Orlando area).
When it was still accepting applications, Fountain was a direct lender specializing in SBA loan programs. It also focused on Low LTV conventional loans. It helped small and midsize businesses finance commercial real estate.
Fountainhead Commercial Capital offers SBA 504 loans designed to help small businesses acquire commercial real estate or equipment to create wealth. These loans typically offer low down payments and long-term fixed-rate financing, making them an attractive option for small business owners.
The SBA 504 program is a partnership between a Certified Development Company (CDC), a lender, and the small business borrower, with the SBA providing a guarantee for a portion of the loan. Fountainhead Commercial Capital works with small business owners to navigate the SBA 504 loan process and secure the financing they need to grow and expand their businesses.
SBA 7(a) loans are designed to help small businesses with various financing needs. These loans can be used for purposes such as working capital, business acquisition, purchasing equipment or real estate, and refinancing existing debt. SBA 7(a) loans feature competitive interest rates and longer repayment terms, making them an attractive option for small business owners looking for flexible financing options.
Fountainhead Commercial Capital provides personalized guidance and support throughout the application process, helping entrepreneurs navigate the complexities of securing an SBA 7(a) loan. With their expertise and dedication to serving small businesses, Fountainhead Commercial Capital is a trusted partner for entrepreneurs seeking funding to grow and expand their companies.
Fountainhead Commercial Capital offers Conventional Loans with a low Loan-to-Value (LTV) ratio, making it an attractive option for businesses looking to secure financing with a smaller down payment. These loans are ideal for companies with solid credit and stable financial history, offering competitive interest rates and flexible terms. With Fountainhead’s Conventional Loans, businesses can access the capital they need to grow and thrive while keeping their initial investment low.
Types of properties financed include:
As mentioned, the company is currently not accepting applications. However, here are the qualifications it looked for when it still financed small business loans.
Unlike many lenders, Fountainhead doesn’t list minimum credit score, revenue, or time in business requirements. Here are the listed eligibility criteria for each loan type.
SBA 504 Loans:
SBA 7(a) Loans:
Conventional Loans:
Applications are currently paused. It’s unclear whether the non-bank lender will resume accepting applications and funding small businesses.
The move to stop accepting applications reflects the continued volatility in the small business lending market. While some lenders like Fountainhead are pulling back, it creates a new opportunity for lenders (and lending marketplaces like United Capital Source) to fill the void.
Fountainhead was the 6th largest SBA SBLC lender in 2022, with $49 million in SBA 7(a) loans. Fortunately, other alternative lending options can help you access SBA loans.
The non-bank lender excluded the following companies:
The company offers a business loan referral program called FastTrack. While the referral form is still active, it’s unclear whether ISOs and business loan brokers can offer its products. You should contact the company if you’re interested in its loan referral program.
As mentioned, the company is not accepting applications at this time. Here are the steps in the process from when Fountainhead processed loan applications.
Prospective borrowers can start the application process online through Fountainhead’s website. The online application provides a convenient and accessible way for individuals to begin their financing journey.
The application requires detailed financial information, including income statements, tax returns, and business financials. This comprehensive approach ensures that Fountainhead thoroughly understands the borrower’s financial position.
In addition to financial details, applicants must provide documentation of the property being financed. This may include property appraisals, insurance information, and legal documents. By providing these documents, borrowers demonstrate their commitment and readiness for financing.
After submitting the initial application, borrowers will work closely with a dedicated loan officer. This personalized approach allows borrowers to receive guidance and support throughout the application process. The loan officer serves as a valuable resource, addressing any questions or concerns that may arise.
You’ll work with the loan officer to finalize and close the loan. The company prides itself on speed, offering quick decisions. SBA lending can take several weeks, regardless of the lender.
After securing funding from Fountainhead Commercial Capital, the post-funding process typically involves the disbursement of funds to the borrower. This may involve setting up a payment schedule, providing access to online account management tools, and ensuring that the borrower has all the necessary information to make timely payments.
Additionally, Fountainhead Commercial Capital may offer ongoing support and guidance to help the borrower successfully manage and repay the loan. Overall, the post-funding process aims to ensure a smooth and successful experience for the borrower as they utilize the funds for their business needs.
Fountainhead stands out for offering competitive interest rates and favorable loan terms. This means that borrowers can secure financing with terms that are beneficial and align with their financial goals.
Borrowers benefit from personalized attention and guidance throughout the loan process. This level of personalized service ensures that each borrower’s unique needs and circumstances are considered, leading to a more tailored and satisfactory lending experience.
Fountainhead’s commercial real estate financing expertise sets it apart from traditional lenders. This expertise allows the company to provide specialized solutions that cater specifically to the needs of commercial real estate investors and developers.
Some borrowers may find the qualification requirements stringent compared to other lenders. The lender might have stricter criteria for credit scores, business financials, or collateral, which could make it challenging for some potential borrowers to meet the eligibility standards.
The application process with Fountainhead may be more involved than with some alternative lending options. This could entail providing extensive documentation, undergoing thorough evaluations, and engaging in multiple rounds of communication with the lender. As a result, some applicants might perceive this as a time-consuming and labor-intensive process.
Certain borrowers may prefer a lender with a broader range of financing products. While Fountainhead specializes in SBA 504 loans and commercial real estate financing, it may not offer as diverse a selection of loan types as other financial institutions. Consequently, individuals seeking different forms of funding, such as equipment financing or working capital loans, might opt for lenders with broader product portfolios.
Yes, Fountainhead is a legitimate company. We’ll have to wait and see how the application pause impacts the company in the long term. However, it has a commendable track record of successful loan transactions, demonstrating its reliability and capability in providing financing solutions for commercial real estate ventures. This history of successful deals underscores the legitimacy and effectiveness of Fountainhead’s services.
Fountainhead has a mix of reviews. The company has a rating of 4.9 out of 5 on over 2,300 Google reviews, but it only has a 2.8 out of 5 on Trustpilot.
Fountainhead Commercial Capital’s positive reviews consistently highlight the exceptional customer service and support provided throughout the lending process. Borrowers often express satisfaction with the personalized attention they receive, describing it as attentive and supportive. This emphasis on customer service creates a positive experience for borrowers, fostering trust and confidence in Fountainhead’s services.
Borrowers frequently mention the competitive rates and favorable terms Fountainhead offers in their reviews. This significantly contributes to Fountainhead’s overall appeal among potential borrowers.
Some reviews delve into specific experiences with Fountainhead’s application and approval process. These firsthand accounts provide valuable insights for prospective borrowers, offering a glimpse into what they can expect when engaging with Fountainhead for their financing needs. For example, one customer mentioned being surprised by how quickly the funds were available in their bank account.
Many negative user reviews of Fountainhead Commercial Capital focus on issues with customer service, slow response times, and lack of transparency in the lending process. Customers have reported feeling frustrated with the lack of communication and support from the company and encountering unexpected fees and charges.
Some users have also expressed dissatisfaction with Fountainhead Commercial Capital’s loan terms and conditions. We should note that some negative reviews were related to PPP loans. For example, one customer complained about not receiving notification for PPP loan forgiveness. The PPP loan program has been discontinued.
When Fountainhead accepted applications, common reasons for denial included not having the credit score requirements or meeting SBA eligibility. If your loan request is denied, you can seek feedback from your dedicated loan officer to understand the reasons behind the decision.
Fortunately, many lenders are accepting applications and funding small business loans. While lenders for SBA loans often have strict requirements, many alternative loans are available with much more lenient criteria.
You may be interested in one of the following small business loans:
When it accepted applications, Fountainhead Commercial Capital stood out as a reputable lender offering competitive commercial real estate financing solutions. With personalized service, competitive rates, and expertise in SBA and conventional loans, Fountainhead was a viable choice for entrepreneurs seeking to secure funding for their commercial properties.
Based on the available information, we rated Fountainhead as a 3.8 out of 5. While its commitment to customer service is excellent, the limited product offerings and strict eligibility excluded many small business owners.
While it’s unfortunate that some lenders like Fountainhead no longer offer small business financing, many lending options are still available. Here at UCS, our network of lenders is open for business.
Disclaimer: The Fountainhead Commercial Capital trademark is owned by Fountainhead Commercial Capital and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from Fountainhead Commercial Capital.
