MCP Financing for Aircraft Owners: The Complete 2026 Guide

MCP Financing for Aircraft Owners: 2026 Guide

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If you’re a high‑net‑worth individual, flight‑school operator, or independent contractor eyeing a private or commercial aircraft, you’ve likely heard the term “MCP loan.” This guide breaks down the basics, eligibility, benefits, and how to secure one in 2026.

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What is an MCP (Multi‑Collaterally Planned) aircraft loan?

An MCP loan is a secured financing product that lets borrowers pledge multiple assets—such as real‑estate, investment portfolios, and other aircraft—to obtain higher borrowing limits and better rates.

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Why MCP financing is gaining traction in 2026

• Lower rates – By spreading risk across several collateral types, lenders can offer rates up to 0.75 % below standard aircraft loans.
• Higher loan‑to‑value ratios – LTVs of 80 % for new jets and 70 % for used propeller‑driven aircraft are common, compared with the 60‑70 % range of single‑collateral loans.
• Flexibility for mixed‑use owners – Flight schools can bundle training aircraft with a corporate jet, while private owners can combine a personal airplane with other assets to fund a larger purchase.

According to the Equipment Leasing & Finance Association (ELFA), total aviation equipment financing volume grew 7.2 % in Q1 2026, driven largely by multi‑collateral structures that appeal to high‑net‑worth borrowers.
(https://www.elfaonline.org/press‑release/q1‑2026‑aviation‑financing)

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Who can benefit from an MCP loan?

Applicant type	Typical use case	Key advantage
High‑net‑worth private pilots	Purchase a new turbofan or high‑performance piston aircraft	Access to 80 % LTV with rates near 4.2 %
Flight school owners	Finance a fleet of training aircraft and a corporate jet	Combine multiple aircraft into one loan, freeing up cash flow
Independent contractors / charter operators	Refinance existing fleet while adding a newer jet	Consolidate debt, lower monthly payments, and secure reserve capital
SBA‑eligible aviation businesses	Acquire or upgrade equipment	Pair MCP with SBA 7(a) for up to 90 % financing

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How to qualify for an MCP loan in 2026

1. Credit score – Minimum 680 for most lenders; stronger scores secure the best rates.
2. Debt‑service coverage ratio (DSCR) – Lenders look for a DSCR of ≥1.25 on projected cash flows.
3. Collateral package – At least two high‑value assets (e.g., a primary residence, investment portfolio, or another aircraft) must be pledged.
4. Down payment – Typically 10‑20 % of the total loan amount, though stronger collateral can reduce this requirement.
5. Documentation – Recent tax returns, audited financial statements, aircraft appraisal, insurance certificates, and a detailed business plan (for commercial borrowers).

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Step‑by‑step: Securing an MCP loan

1. Pre‑qualify – Submit a brief profile (asset list, credit score, intended aircraft) to receive a conditional commitment and an estimated rate. 2. Asset valuation – Obtain professional appraisals for each pledged asset; lenders often require third‑party reports. 3. Choose a lender – Compare offers using a fixed wing aircraft lender comparison table (see below) to find the best mix of rate, term, and collateral flexibility. 4. Submit a full application – Provide full financial statements, tax returns, and the loan‑to‑value analysis prepared by the lender. 5. Underwriting & approval – The lender reviews the combined collateral package, runs a risk assessment, and issues a final term sheet. 6. Closing – Sign the loan agreement, record liens on pledged assets, and receive funds to close on the aircraft purchase or refinance.

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Fixed‑wing aircraft lender comparison (2026 snapshot)

Lender	Base rate (fixed‑wing)	Max LTV	Typical loan term	MCP‑specific feature
Aviation Capital Bank	4.2 % APR	80 %	10‑15 yr	Allows real‑estate as secondary collateral
Midland Aviation Finance	4.5 % APR	75 %	8‑12 yr	Tiered rates based on total collateral value
SBA‑partner Lender	4.8 % APR (SBA‑guaranteed)	90 %	Up to 20 yr	SBA 7(a) combined with MCP for lower equity burn
National Aircraft Credit	4.6 % APR	78 %	12‑18 yr	Fast‑track underwriting for existing customers

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Frequently asked quick answers

Can I finance a used aircraft with an MCP loan? Yes – lenders typically finance up to 70 % of the appraised value for aircraft older than ten years.

What are the typical interest rates on aircraft loans in 2026? Secured MCP rates average 4.2 % for fixed‑wing and 4.8 % for turbofan jets, compared with 4.7 % and 5.3 % for standard single‑collateral loans.

How does an MCP loan differ from an SBA 7(a) loan? An SBA 7(a) loan provides a government guarantee and can cover up to 90 % of the purchase price, but it often requires a longer approval timeline. MCP loans are private‑sector products that move faster and can be combined with SBA financing for even higher leverage.

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Pros and cons of MCP financing

Pros

• Lower interest rates due to diversified collateral.
• Higher LTVs enable larger aircraft purchases with less cash.
• Flexibility to refinance existing assets while adding new ones.
• Can be paired with SBA programs for maximum leverage.

Cons

• More complex documentation and collateral management.
• Requires strong overall asset base; not ideal for borrowers with limited non‑aircraft assets.
• Potentially higher closing costs due to multiple lien filings.

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Bottom line

MCP financing offers high‑net‑worth individuals and aviation businesses a cost‑effective way to acquire or refinance aircraft by leveraging multiple assets. In 2026, rates are competitive, LTVs are generous, and the structure works well alongside SBA programs for maximum borrowing power.

Ready to see if you qualify? Check rates now.

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Disclosures

This content is for educational purposes only and is not financial advice. airpost.digital may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.