ADDED
New York 11-3474831 (State or other jurisdiction of incorporation or organization) (I.R.S.
All loans, except for one loan with a current outstanding principal balance of approximately $22,000, are secured by a first mortgage lien on real estate.
Most of the loans we make have a stated fixed interest rate, typically ranging from 9% to 12.5% per annum; however, a substantial portion of our loan agreements also include a provision that permits us to charge interest at a rate equal to the greater of (i) the stated loan rate and (ii) the prime rate plus 3.0% on the outstanding principal balance.
In furtherance of these strategies, we are party to a credit line agreement with Webster Bank, N.A (as successor to Webster Business Credit Corporation) ( Webster ) and Flushing Bank ( Flushing ), pursuant to which Webster and Flushing have provided us with a $32.5 million credit line.
We are also party to a letter agreement with Valley National Bank ( Valley ), pursuant to which Valley has provided MBC Funding II with a $10.0 million credit line.
At December 31, 2025 and 2024, our unfunded commitment was approximately $4.4 million and $7.2 million, respectively.
Although loan origination activity slowed during 2025, we have recently experienced improved demand for new loans and faster portfolio turnover.
As of December 31, 2024, we had made loans to four separate entities with an aggregate principal balance of $7,225,000, representing 11.0% of our loan portfolio, and as of December 31, 2025, we had made loans to three separate entities with an aggregate principal balance of $6,245,000, representing 10.3% of our loan portfolio.
A single individual owns at least 50% interest in each of these entities and is not affiliated with any of our officers or directors.
We currently maintain a credit facility with Webster and Flushing pursuant to which are eligible to borrow up to $32.5 million, secured by assignments of mortgages and other collateral (the Webster Credit Line ), and a credit facility with Valley pursuant to which MBC Funding II is eligible to borrow up to $10.0 million, secured by assignments of mortgages (the Valley Credit Line ), each as described in Item 7.
REMOVED
All loans, except for one with a face value of approximately $47,000, are secured by a first mortgage lien on real estate.
Our loans typically have a maximum initial term of 12 months and bear interest at a fixed rate of 9% to 13% per year.
6 In furtherance of these strategies, we have a credit line agreement with Webster Business Credit Corporation ( Webster ), Flushing Bank ( Flushing ), and Mizrahi Tefahot Bank Ltd.
( Mizrahi ) whereby Webster, Flushing and Mizrahi have extended us a $32.5 million credit line.
At December 31, 2024 and 2023, our unfunded commitment was approximately $7.2 million and $7.98 million, respectively.
10 At December 31, 2023, no single loan, borrower or group of affiliated borrowers accounted for more than 10% of our loan portfolio.
At December 31, 2024, we have made loans to four different entities in the aggregate amount of $7,225,000, or representing 11.0% of our loan portfolio.
Currently, we have a credit line with Webster, Flushing, and Mizrahi pursuant to which we are eligible to borrow up to $32.5 million against assignments of mortgages and other collateral (the Webster Credit Line ), as described in Item 7.
Management s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources below.
As of December 31, 2024, the interest rates under the Webster Credit Line equaled (i) the Secured Overnight Financing Rate ( SOFR ) plus a premium, which rate aggregated 8.0%, including a 0.5% agency fee, or (ii) a Base Rate (as defined in the Amended and Restated Credit Agreement) plus 2.00% plus a 0.5% agency fee, as chosen by the Company for each drawdown.