SBA 504 Loans For Commercial Real Estate
Not many people are aware that the SBA provides low-interest commercial real estate financing in the form of SBA 504 loans. While SBA 504 loans are not available for apartment properties, they are available for commercial, owner occupied properties such as day cares, hotels, office buildings, retail buildings and more. To quality, a property must be more than 51% owner occupied. In addition to SBA 504 loans, the SBA also offers SBA 7a loans which offer significantly more flexibility. Like 504 loans, SBA 7(a) loans can be used for the acquisition or refinancing commercial real estate, but they can also be utilized for working capital, equipment financing and other purposes.
Click the link below for a free SBA loan quote and to see what you qualify for. After you fill out the short form, take a look at the SBA loan checklist so you know what documentation you may need if you decide to move forward with the process.
Loan Amount: Up to $14 million.
Loan Term: 20 - 25 Years (fully amortizing)
Rates: Starting at 5.50% (Prime + 1.25% - 2.75%)
Loan to Value: Up to 90% LTC (80% on hotels and motels)
DSCR: Minimum 1.20x DSCR on existing cash flow
Reserves: Taxes and Insurance
Credit Score: 680+
Assumability: Yes in event of property sale with nominal fee
Prepayment: 5-Year Minimum
Properties: Owner Occupied: Hotels, Restaurants, Office, Mixed Use, Retail, Gas Station/C-Store, Day Care, Medical Office, Assisted Living, Warehouse/Manufacturing, Self Storage, Industrial, Land (not multifamily and apartments).