Twelve Reasons a 504 Loan is Best for Your Business

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1 A White Paper on a Better Way to Finance Commercial Real Estate By Christopher G. Hurn Page 1 of 15

2 Drafted April 2003 Executive Summary 1.) Ninety-percent financing for commercial real estate utilizing the 504 Loan Program allows business owners to preserve more capital for other uses and gain the highest cash-on-cash return for that capital when used to purchase commercial property. 2.) Businesses can save on interest expense by not accepting market interest rates when below market rates are available with the 504 Loan Program. 3.) Longer loan amortizations allow for smaller monthly payments, which have less impact on business cash flow. Furthermore, since prepayments are always allowed, business owners can have the best of both worlds. 4.) When putting in 10% equity, getting below market rates and having the benefits of longer loan amortizations versus traditional lending, business owners cash flow is less impacted, and business owners can still realize all the advantages of purchasing or constructing commercial real estate. 5.) Owning commercial real estate versus leasing typically has an immediate reduction of up to 40% of real estate expenses, plus the added benefit of converting the third largest expense facing businesses into a fixed cost that does not increase by an average of 3.5% each year like with renting. 6.) Financing closing and other soft costs with a 504 loan helps keep out-of-pocket expenses to a true ten percent minimum when business owners make the decision to purchase commercial property and only want to spend the minimum amount of cash necessary. 7.) No balloon payments, calls or negative loan covenants enable borrowers to have more control, more peace of mind and less lender micro-management. 8.) Closing in as soon as thirty-days allows business owners to take possession of their new asset and start reaping the advantages as soon as possible. 9.) Dealing with a specialist in 504 loan financing makes the experience of buying commercial property simple and hassle-free. 10.) Future sales of properties financed by 504 loans are benefited by having the availability of assumable mortgages at today s historically low interest rates. 11.) A 504 loan can be made without disrupting your existing banking relationship because some 504 lenders do not require other banking products or services in conjunction with their 504 loans. 12.) This program provides small and mid-sized businesses advantages previously only known to much larger enterprises. Read on to learn more. Page 2 of 15

3 Summary The decision to purchase or construct commercial real estate for your business is not one to be taken lightly. While there are numerous traditional sources of financing available to you, a commonly over-looked option is the 504 Loan Program. This loan program is widespread and well known on the West Coast and has been used there for years, but it is relatively unknown and under-appreciated here in Florida. We believe the 504 Loan Program is the best way for businesspeople to purchase commercial real estate, thus enabling you to more easily own an appreciable asset. This loan program has several advantages over conventional financing and this White Paper will attempt to thoroughly explain those and many of the elements of a 504 loan. The Advantages 1.) Ninety-percent (90%) Financing 504 loans have an equity requirement of only ten percent (10%) for most projects and borrowers. All project costs are included: land; building; renovations; and soft costs. Equity of 15-20% is required for start-ups and businesses with irregular profitability, those that lack historical debt service ability or have a short track record, and for special purpose properties. Unlike conventional commercial real estate financing, 504 loans typically have half the equity requirement (10% versus 20% to 30%), which allows borrowers to preserve more of their resources for operating capital to grow their business. Put another way, lower down payment requirements allow businesses to direct more of their capital away from non-income producing assets (like a building) and toward the operations of their business, which should create additional income. 504 loans have a first mortgage that is typically 50% of the total project costs, a second mortgage that is typically 40% and provided by a Certified Development Company (CDC), and then the final 10% coming from the Borrower. Most traditional financing institutions (banks, mortgage companies, etc.) only lend up to 80% of the appraised value of a project (depending on the credit quality of the Borrower) leaving the Borrower to contribute 20% or more to the cost of the project. This fact alone has historically limited the number of businesses able to own their commercial property and is also a primary reason commercial real estate purchasing decisions have historically been such critical ones. Ninety-percent financing also provides the highest cash-on-cash return available in financing commercial real estate. Just like the capital utilization you conduct with your business trying to get the greatest return from the least amount of cash financing commercial real estate with a 504 loan provides a better utilization of your capital. Page 3 of 15

4 Ninety-percent financing for commercial real estate preserves capital, provides the highest cash-on-cash return and is a significant advantage not available with traditional financing options. 2.) Below Market Interest Rates The effective, blended interest rates on most 504 loans are below those offered by typical, conventional lenders. And, the less you pay in interest expense, the more you have for operating capital. Usually the first mortgage portion (50%) of a 504 loan is at or slightly higher than conventional financing rates. These interest rates can be fixed or variable (floating). Current interest rates (with Mercantile Commercial Capital, LLC) range (depending on the credit quality of the Borrower) from the low 6% to mid 7% fixed, and high 4% to mid 6% variable. Conventional lenders are currently fixing their 80% Loan To Value (LTV) conventional commercial real estate financings in the mid 6% to low 7% range. The second mortgage portion (40%) of a 504 loan is at a substantially below market interest rate. For commercial real estate, the CDC s offers a fixed rate for twenty years, usually about basis points ( %) below market and fixed for the entire twenty years. These rates are achieved by the nation-wide, monthly aggregation and issuance of U.S. Small Business Administration (SBA) guaranteed debentures, which are typically purchased on Wall Street by institutional investors seeking secured, reasonable yields. When both portions of a 504 loan are combined, the effective, blended interest rates are currently in the low to mid 6% range. No traditional lenders can match interest rates like these, particularly with 90% financing. Even if a traditional lender were to somehow offer a slightly lower interest rate for a commercial real estate loan, the difference in equity requirement (20% to 30% versus 10%) invested in a conservatively yielding vehicle would substantially offset the difference in interest rate spread. Let s say you have a $1,000,000 total commercial real estate project. You receive a quote for an $800,000, 80% LTV loan from a bank which is fixed at 6.4% for five years. You also get an offer for $900,000, 90% financing from Mercantile Commercial Capital, LLC (MCC) which is fixed at 6.61% for a blended nine years (five years fixed on the first mortgage and twenty years fixed on the second mortgage). Under this scenario, you would only have to find an investment opportunity for your saved $100,000 that earns 0.21% per year to make up the difference in interest rates between your two options. Even reinvesting that $100,000 back into your company ought to earn you substantially more than any possible difference in interest rates between a 504 loan and a conventional loan. Page 4 of 15

5 Example: $1,000,000 commercial real estate project Conventional Loan $800,000 (80% LTV). $200,000 down payment. 6.4% fixed rate for 5 years. 0.21% interest expense saved. 504 Loan $900,000 (90% LTV). $100,000 down payment. 6.61% fixed rate for 9 years (blended). $100,000 down payment saved. 0.22% or higher return on $100,000 tips the scales in favor of the 504 loan. Your business can save on interest expenses by not accepting market interest rates when below market rates are available to you. 3.) Longer Loan Amortizations 504 loans can have up to 25-year amortizations on the first mortgage portion and 20-year amortizations on the second mortgage portion, allowing your business to make lower monthly loan repayments. Because the CDC is in a second lien position, the first mortgage lender is willing to lend at a longer term. Longer terms more closely match the useful life of the asset, and longer terms make your monthly payments lower as the repayments are stretched over a longer period of time. Most conventional commercial real estate financing is either on a 15 or a 20-year amortization. These shorter repayment terms are better for the traditional lender because their capital is not outstanding as long as it could be, but these shorter terms impact a business cash flow negatively. Growing businesses need to stretch debt repayment terms in order to deploy excess capital toward more growth. Longer amortizations are beneficial for your business cash flow, but you can always prepay (with MCC, up to 20% of your outstanding principal each year) when you have excess capital. It is in this way that our borrowers can have the benefits of longer amortizations, and also the benefits of being able to prepay to shave interest expenses. Longer loan amortizations allow for smaller monthly repayments, which impacts your cash flow less, but you can always prepay and essentially have the best of both worlds. Page 5 of 15

6 4.) Less Impact on Cash Flow High cash outlays, uncertain interest rates and short repayment periods make conventional loans unappealing or unavailable to many small to mid-sized business owners, even when business expansion makes sense for your business, your investors, your employees, and your community. But because of the prior three advantages, financing your commercial real estate with a 504 loan significantly reduces the impact that purchasing or constructing commercial property would have on your business. It is worth mentioning again, that this advantage of a 504 loan is that substantial. This loan program has less of an effect on both your ongoing operational cash flow and also the availability of cash reserves to support the cash flow needs of your business. You have probably heard the adage, cash is king and cash flow is the lifeblood of business. Realizing this and seeing the advantages of owning commercial property, it is best as business owners not to put your business cash flow in jeopardy. The 504 Loan Program, more than any other commercial real estate lending program, minimizes the impact of purchasing commercial real estate on your business cash flow. Redirecting your excess resources to get ready for growth with an improving economy is a key strategic decision that is made possible with this type of financing. When you only have to put down 10% equity, can get below market rates and have the benefits of longer loan amortizations than with traditional financing, your business cash flow is less impacted and you can still have all the advantages of purchasing or constructing commercial real estate. 5.) Up to 40% Reduction in Real Estate Expenses With interest rates at the lowest levels in forty-five years and the availability of 504 loans to provide longer loan amortizations, it should come as no surprise that this loan program has produced annual real estate expense reductions in the neighborhood of 20 to 40% regularly. Assuming a business has the capital (and sufficient reserves thereafter) to put down 10% in equity, you will find that in nearly every case, owning is less expensive than leasing. Paradoxically, this has the effect of improving your business cash flow while building the assets of your company for the owners. In recent side-by-side comparisons, we have regularly seen annual real estate expenses cut by up to 40% for those choosing to own instead of rent. Only in two recent cases have we seen payments on loans exceed existing monthly lease payments, but in both cases the borrowers were purchasing or constructing facilities that were nearly twice the size of their current space. Real estate expenses are typically the third largest, regular cost a business has, after payroll and taxes. The average annual lease payments on commercial real estate rise 3.5% each year. So, the third largest expense of a typical business increases by 3.5% each year, yet not enough businesses try to convert this large, variable expense into a Page 6 of 15

7 fixed cost that can improve the business balance sheet. This is precisely what owning your commercial property does. In addition to controlling and converting this large, variable and increasing cost into a fixed cost, as stated above, the immediate impact on overall real estate expenses is to lower them by up to 40%. Naturally, the impact of lowering your real estate expenses by owning commercial real estate is cumulative as you continue growing your business into the future. Owning versus leasing typically has an immediate reduction of up to 40% of real estate expenses, plus the added benefit of converting the third largest expense facing your business from a variable cost into a fixed one that does not increase an average of 3.5% each year. 6.) Finance Closing and Other Soft Costs The 504 Loan Program is expressly available to enable small to mid-sized business owners to own their commercial property without putting their business livelihoods in jeopardy by putting too much down on commercial property with rates and amortizations that hurt rather than help a business cash flow. In keeping with that goal, the 504 Loan Program also allows the financing of closing costs and other normally out-of-pocket fees to be financed as part of the loan amount. Such soft costs as: interest on interim loans; professional fees; title searches and insurance; attorneys fees; appraisal fees; environmental report costs; architect fees; permits; surveys; installation of machinery; points on bridge loans; small amount of furniture and fixtures; and so forth are all financeable under the 504 Loan Program. Typically, with a 504 loan, a borrower would pay for many of these fees out-of-pocket and then receive credit at closing for having paid these as part of their equity injection. With traditional financing, most of these fees are paid in addition to putting down 20% to 30% equity. Having to pay 22% to 33% in true cash outlays instead of just 10% is a significant difference and one that most lenders care not to mention. Financing closing and other soft costs helps keep out-of-pocket expenses to a minimum when you make the rather significant decision to purchase commercial property and only want to spend the minimum amount of cash whether to preserve cash or to maintain a higher cash-on-cash return from your new appreciable asset. 7.) No Balloon Payments, Calls or Covenants A bothersome occurrence with many traditional lenders is the presence of balloon payments in their loan terms, usually in five, seven or ten years. Lenders have these balloon payments in place as a means to reset their interest rates after a period of time or Page 7 of 15

8 reexamine their borrower and his business. While on the surface, that action may seem reasonable, most lenders do not just have a rate reset, they balloon the entire outstanding principal balance. Typically, these clauses unnecessarily force borrowers to spend additional money to refinance their commercial mortgage, so the interest rates the bank charges can be recalculated, usually at higher rates. Your business faces the very high prospect of paying for another appraisal or having to contend with potential changes in your marketplace or performance when you need to find this replacement funding. Moreover, a traditional lender s interest in your industry sector might have changed, which puts you and your business in a precarious situation. Another standard component of most traditional financing is the presence of loan covenants and calls. These clauses in loan documents work hand-and-hand and enable lenders to call your note (force immediate repayment) if certain loan covenants are not met (maintaining certain financial ratios, for instance). The problem with these clauses, which are not present in 504 loans, is that if your business has temporarily fallen on hard times, the bank effectively piles on and can make the situation fatal to your business. The last thing a small to mid-sized business owner needs when they have just lost their largest customer and face a 30% reduction in revenues, is for their bank to tell them they have violated their loan covenants and that their loan is now being called. Also with conventional financing, a lender can decide to review your loan because of questions about its own financial health, not yours. These are measures of protection for most lenders that are frequently counterproductive for a typical small to mid-sized business owner. By contrast, 504 loans have no balloon payments, just true rate resets for the typical first mortgage portion (50%). Currently with MCC, these resets can occur five or ten years from the loan closing and will be the same initial spread over the index plus the thencurrent index rate (i.e. 3.75% or 375 basis points plus the 5-year LIBOR at 2.88% = 6.63%). The second mortgage portion of 504 loans provided by the CDC has no balloon payments or rate resets because it is fixed for the entire twenty-year term of the note and has a guaranty in place with the full faith and credit of the U.S. government. It is a self-liquidating loan, or as we like to say, long-term, set-in-stone financing. There are also no detrimental loan covenants with the ability to call a 504 loan. Economic ups and downs are unlikely to sway a CDC s or a 504 lender s view of your 504 loan, in large part because of the loan s federal guarantee and the lender s 50% first mortgage position which mitigates its risk versus a conventional 80% first mortgage position. All of these items enable you to have more control, more peace of mind and less lender micromanagement. No balloon payments, calls or negative loan covenants enable Borrowers to have more control, more peace of mind and less lender micro-management. Page 8 of 15

9 8.) Thirty (30)-Day Closes Gone are the days of terribly slow moving lenders providing SBA loans. At MCC, we can close your loan in thirty days or less, provided all documents have been submitted and all third-party reports are ready. Most traditional lenders cannot close conventional loans this fast. The longest part of the process these days is waiting for the appraisal to be finished, primarily because many appraisal firms also do residential appraisals and the low interest rate environment has been a boom for their residential divisions, thereby elongating the commercial side s response time. Also, unlike many lenders, MCC can issue a preliminary approval within hours of reviewing some basic financial information (i.e. corporate and personal tax returns, a schedule of business debts, and a personal financial statement) and issue a formal commitment within three days of receiving a complete loan package. This is, by far, the fastest turnaround time in the industry. In addition, we do not have a loan committee to wait for that only meets once every other week, like with many lenders. We are a lean operating entity, probably much like your organization, and we can make decisions very quickly, assuming we have all the information we need. Once you have made the decision to purchase your commercial property for all or at least some of the reasons we have already mentioned above, it seems like there is no good reason that you should have to wait 45 to 120 days to take possession of your new asset. Take possession of your new asset and start reaping the advantages of owning commercial property as soon as possible with closes in thirty days or less. 9.) Specialists Make the Process Simple When decisions are of a critical nature, it is best always to deal with specialists whose expertise can help you select the best options. This is especially true of selecting how to finance your commercial property, and the lender you choose to provide it. You have probably heard the saying that, purchasing a home is the largest financial decision you will ever make. While that may be true for many Americans, you presumably have already achieved the first two stages of the American Dream: home ownership and starting your own business. Now you are contemplating a third phase of the American Dream: owning your commercial property. One of the largest financial decisions you will ever make at this stage in your life is whether to own commercial real estate or continue renting. Some lenders have developed the expertise to effortlessly provide financing like the 504 Loan Program, while others have not. With such an important decision having been made, you cannot afford to work with a lender who only occasionally does a 504 loan. There are too many moving parts to this loan program and only someone who Page 9 of 15

10 specializes in them, has relationships with CDC s and others, and has the ability to streamline the entire process for you, is the right lender for you. Lenders providing this type of financing need to make more than just a couple of these loans each year to develop the expertise necessary to adequately help you with this program and give great customer service. Most traditional lenders would rather provide you with cookie-cutter financing that has less advantageous terms for you that what a 504 loan offers. Why would a loan officer offer you a 504 loan when that would fundamentally cut their loan amount down from 70% or 80% to 50%? And why would a typical loan officer offer you a loan product that is more work for them, even if it means a better deal for you? The 504 Loan Program is not well known by traditional lenders and is not frequently offered by commercial banks for exactly that reason: 504 loans are better for you, not them. At MCC, we are dedicated to making this process an easy one for you. Our loan officers are trained professionals who are eager and, better yet, qualified to help you with your financing request. Our loan officers primarily focus on providing 504 loans. Most loan officers for traditional lenders have as many as thirty products and services to offer you and keep track of. Much like your business is focused on certain products or services in a particular industry, we believe in the importance of proving our excellence with a very narrowly focused finance program. We cannot be all things to all people, and therefore, we choose to specialize. Securing this type of financing is smooth, easy and hassle-free when you have the right people on your side. Buying your own commercial property is not a decision to be taken lightly, and if you want the advantages of 504 loan financing, then dealing with a specialist will make your experience simple and hassle-free. 10.) Assumable Loans 504 loans are assumable, which means others may qualify to assume your mortgage should you decide to sell your property in the future. You may be able to offer the advantages of 504 loan financing to future buyers, thereby giving your property a particularly attractive selling feature. This is all the more likely if you are considering purchasing or constructing in today s historically low interest rate environment. By the time you may be ready to sell your property, the likelihood that the then current interest rates would be higher than the prevailing rates today, is very good. Your prospective buyer will probably want to assume your lower interest rates because he will not be able to secure such rates in that future environment. Most traditional financing options do not include this feature. Additionally, the business assuming your 504 loan does not have to be another small to mid-sized business, which is why numerous Fortune 500 firms have 504 loans even though they could never qualify for the loan program on their own. This Page 10 of 15

11 advantage of 504 loans will allow you to more easily sell your property to whomever, whenever. If you chose to sell your property in the future, having the availability to assume your low interest rate mortgages may entice more buyers to bid more for your property and close quicker. 11.) No Disruption of Existing Banking Relationship Securing financing for long-term fixed assets like commercial real estate does not have to be done through your existing bank. In fact, it is often beneficial for business owners to keep their lenders honest by not having all of their eggs in one basket. Business owners wanting to purchase or construct commercial property with a 504 loan need not bother a lender that does not specialize in the program, nor should they worry that their existing banking relationship will be disrupted by using another lender like MCC for this type of project. Lenders like MCC only provide 504 loans. We do not offer any depository products at all, nor do we provide lines of credit, residential mortgages, car loans, etc. We specialize only in 504 loans and thereby can be a good compliment to your existing bank that provides those other functions. Your bank will not feel threatened that they could lose all of your business to another competing bank, when you deal with MCC. Other lenders that compete with your current bank for products and services will require the complete transfer of your financial instruments and relationship and probably disrupt your business in the process. Unlike other lenders, MCC does not include any finance agreements requiring the transferring of accounts, assets and notes to our firm. We only provide 504 loans and try to keep the process as simple, neat and clean as possible. We want you to maintain your existing banking relationship (if it is a good one); we just want to provide you with a 504 loan. For many lenders, it simply is not worth the effort to only provide you or your business with a single loan but no other financial products. If they cannot have all of your business, then they do not want any of your business. This is clearly not the case at MCC. A 504 loan can be made without disrupting your existing banking relationship because some 504 lenders do not require other banking products or services in conjunction with their 504 loans. 12.) It s the Overall Best Deal for You As you can probably tell by now, we firmly believe the 504 loan program has advantages that far outweigh those of more traditional loan financing. If the previous eleven reasons Page 11 of 15

12 have not convinced you that this program is the overall best deal for you, then perhaps we should talk so we might demonstrate it for you in other ways. We have many happy clients that will gladly tell you why a 504 loan was best for them, and why it will be best for you. If you are serious about purchasing or constructing commercial real estate, then we urge you to consider this program, with MCC or with another lender just as capable. And, we suggest you compare the attributes of this type of financing with whatever else you have found and make the best decision you can. We are confident a 504 loan will be Best for Your Business. This program provides small and mid-sized businesses advantages previously only known to much larger enterprises. We started our company to educate the marketplace about this loan program and to be a helpful source in providing this type of lending. We hope this White Paper has furthered your knowledge and helped your decision-making process. Please feel free to share this document with others that may have similar goals and dreams about owning commercial property. You have our Best Wishes for Continued Success! Page 12 of 15

13 How It Works A Typical Project The Borrower determines the total project costs (hard and soft costs). A financial institution like Mercantile Commercial Capital, LLC finances 50% of the cost and takes a first mortgage on the assets financed. A CDC, with a guaranty from the SBA, finances 40% of the project costs (up to a cap of $1.3 million) and takes a second mortgage position. The Borrower puts in as little as 10% equity. Example: Costs Acquisition of commercial building -- $ 800,000 Renovations of same commercial building -- $ 100,000 Machinery -- $ 50,000 Soft costs -- $ 50,000 Total -- $1,000,000 Financing First Mortgage Lender (like MCC) -- $ 500,000 Second Mortgage Lender (a CDC) -- $ 400,000 Equity contribution from Borrower -- $ 100,000 Total -- $1,000,000 Qualifying & Acceptable Use of Funds Proceeds from 504 loans must be used for fixed asset projects such as: purchasing land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping; constructing, modernizing, renovating or converting existing facilities; making leasehold improvements; purchasing heavy machinery and equipment; and associated soft costs (interest on interim loans, professional fees, title searches and insurance, attorneys fees, appraisal fees, environmental report costs, architect fees, permits, surveys, installation of machinery, points on bridge loans, small amount of furniture and fixtures, etc.). Funds cannot be used for refinancing (except to take out financing on property acquired or built within the last nine months with interim funds), working capital, inventory, rolling stock, mortgage broker fees, points on permanent financing or moving expenses. Page 13 of 15

14 To be eligible, a business must be operated for profit, not have a tangible net worth in excess of $7 million and not have an average net income in excess of $2.5 million, after taxes for the preceding two years or meet other size standards (by sales or number of employees depending on NAICS code) as set forth by the U.S. Small Business Administration (SBA). The project being financed must have an owner-user with at least 51% occupancy if funds are for an existing building or 60% occupancy if funds are for new construction. Two or more unrelated small businesses may receive a 504 loan to buy or construct a building as long as they, together, will occupy at least 51% of an existing building or 60% of new construction. Companies that are not eligible for a 504 loan are: non-profits (except sheltered workshops); passive holders of real estate and/or personal property; lending institutions; life insurance companies (however, an insurance agency is eligible); businesses located in a foreign country or owned by aliens; businesses selling products/services through a pyramid plan; illegal businesses; gambling concerns; businesses which restrict patronage; government owned entities (excluding Native American Tribes); businesses engaged in promoting religion; consumer and marketing cooperatives (producer cooperatives are eligible); businesses engaged in loan packaging; businesses owned by persons of poor character; equity interest by lender, CDC or associates in applicant concern; businesses providing prurient sexual material; businesses that have previously defaulted on a Federal loan; businesses engaged in political or lobbying activities; and speculative businesses. This program is designed for small to mid-sized businesses seeking to create or retain jobs (basically, MOST small to mid-sized businesses) OR for those small to mid-sized businesses that meet one of the following public policy goals to: revitalize a business district of a community with a written revitalization or development plan; expand exports; expand minority business development (business must have ownership by a minority business person of at least 51%); change necessitated by Federal budget cutbacks; change required by mandated standards (health, safety, environment, etc.); increase productivity and competitiveness (retooling, robotics or modernization); expand a woman-owned business development; expand a veteran-owned business development, OR for one of following community development goals to: help improve, diversify or stabilize the economy of a locality; stimulate other business development in the community; bring new income into the community; assist manufacturing firms; or assist businesses in a labor surplus area. Page 14 of 15

15 About the Author Chris Hurn is the President and CEO of Mercantile Commercial Capital, LLC, a licensed mortgage lender that specializes in providing 504 loan financing for small to mid-sized businesses in Florida. He is also the CFO of Realvest Holdings, LLC, a diversified commercial real estate brokerage, development, property management, and strategic management-consulting firm. Previously, Chris worked as a management consultant, financier and executive with such companies as GE Capital, Marsh & McLennan Companies (MMC), Heller Financial and American Management Services and has advised, financed and helped numerous small to mid-sized businesses throughout Florida and the Northeast for many years. He began his professional career working in business development and marketing for a high-tech, start-up in the Washington, D.C. area shortly after he completed his graduate degree at the Georgetown University Law Center and earned a Master s degree from the University of Pennsylvania s Fels Center (formerly at the Wharton School of Business). Chris has served on numerous boards involved with small to mid-sized companies, including: the Advisory Board of the UCF Technology Incubator; the Leadership Council of the AeA s Florida chapter; the Central Florida NAIOP Board; the Advisory Board of TechBizFL.com; the Metro Orlando Economic Development Commission Technology Industry Advisory Board and the Wharton School s Florida Alumni Board of Directors. He was a recipient of the Orlando Business Journal s Up and Comers 2000 award and was named to their 100 Most Influential People list for Page 15 of 15