SBA Loans

SBA Loans: Buy Your Business Property with as Little as 10% Down

Small Business Administration (SBA) loans are one of the most powerful tools available to business owners who want to purchase the building where they operate. SBA loans offer lower down payments, longer repayment terms, and more flexible underwriting than conventional commercial loans. If you are a business owner paying rent, an SBA loan could be the path to owning your space instead.

SBA Loan Programs

• SBA 504 Loan: Designed specifically for owner-occupied commercial real estate. You can purchase a building with as little as 10% down. Loan amounts go up to $5,000,000. Terms up to 25 years. Rates are below market because a portion is funded by a Certified Development Company (CDC) backed by the SBA. The 504 is split into two pieces: a conventional first mortgage (typically 50%) and an SBA-backed second mortgage (typically 40%).
• SBA 7(a) Loan: The most flexible SBA program. Can be used for commercial real estate, equipment, business acquisition, and working capital all in one loan. Loan amounts up to $5,000,000. Terms up to 25 years for real estate, 10 years for equipment and working capital.

SBA Eligibility

To qualify for an SBA real estate loan, your business must occupy at least 51% of the property you are purchasing. The business must be a for-profit entity, fall within SBA size standards, and be operating in the United States. Certain industries are excluded. Rob can help you determine if your business and property qualify.

SBA vs. Conventional Commercial

Conventional commercial loans typically require 25% to 30% down and have shorter terms and higher rates than SBA programs. SBA loans are often the better choice for owner-occupants who want to preserve capital, lock in a long-term fixed rate, and build equity in a building instead of paying rent indefinitely.

Get Your SBA Pre-Qualification

Call Rob at 714-400-2317 or apply by clicking here to get started.