SBA 504 Loans For Commercial Real Estate
Not many people are aware that the SBA provides for commercial real estate financing, but they do! SBA 504 loans are not available for apartment properties, rather they are for commercial, owner occupied properties such as day cares, hotels, office buildings, retail buildings and more. The property must be more than 51% owner occupied. The SBA also offers SBA 7a loans which offer more flexibility and can be used not just for acquiring or refinancing commercial real estate, but can also be used for working capital, equipment finance and other uses.
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 will need if you decide to move the process along.
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).