How the capital plan works
The plan applies 2 labeled sizing cases to your figures. Each case tests every limit your inputs support, loan-to-value, loan-to-cost, debt service coverage, and debt yield, and the lowest result controls. The conservative and flexible results bound the illustrative proceeds range, and the plan names the test that limits each one.
| Loan type | Conservative case | Flexible case |
|---|---|---|
| Permanent loans | 60% loan-to-value, 1.40x coverage, 10% debt yield | 75% loan-to-value, 1.25x coverage, 8% debt yield |
| Bridge loans | 60% loan-to-value, 10% debt yield | 75% loan-to-value, 8% debt yield |
| Construction loans | 55% loan-to-cost, 55% of stabilized value, 10% debt yield | 70% loan-to-cost, 65% of stabilized value, 8% debt yield |
| Owner-user (SBA structure) | 75% of value | 90% of value |
The cases are Capital Partners assumptions for illustration, not lender quotes. For reference, Freddie Mac's fixed-rate term sheet uses a 1.25x minimum amortizing debt coverage ratio, and the SBA 504 structure requires a borrower contribution of at least 10%.
Permanent loans are tested on an amortizing payment. Bridge and construction loans are usually interest-only, so the plan tests whether stabilized income supports a permanent takeout. Unless you enter your own rate, the rate assumption is the latest benchmark below plus an assumed spread of 2.00% over the 10-year Treasury for permanent loans, 4.50% over SOFR for bridge loans, and 4.00% over SOFR for construction loans.
| Benchmark | Latest value | As of | A year earlier | What it prices |
|---|---|---|---|---|
| Secured Overnight Financing Rate (SOFR) | 3.88% | September 24, 2026 | 4.13% | Floating-rate bridge, construction, and debt fund loans |
| Bank prime loan rate | 7.00% | September 21, 2026 | 7.25% | Bank construction loans, lines of credit, and SBA 7(a) loans |
| 5-year U.S. Treasury yield | 4.99% | September 23, 2026 | 3.68% | 5-year fixed-rate bank, CMBS, and life company loans |
| 10-year U.S. Treasury yield | 5.11% | September 23, 2026 | 4.12% | 10-year fixed-rate CMBS, agency, and life company loans |
Source: Federal Reserve Bank of St. Louis, FRED. SOFR, DPRIME, DGS5, DGS10
The plan identifies likely capital channels with plain rules based on property type, deal type, occupancy, size, leverage, recourse preference, and timeline. That is a structural screen, not a named lender match or current quote. A principal verifies lender eligibility and appetite after reviewing the plan.