Did you know that the SBA 504 loan program offers substantial financial support for purchasing owner-occupied commercial real estate? Here are some important features and qualifications to be aware of related to commercial real estate and SBA 504 Financing:
Owner-occupied: 51% or more by the subject business.
Up to 90% of the project cost can be financed, reducing the upfront capital required.
Larger Project Sizes: Suitable for projects well above $10+ million (Average deal size typically $500k to $5MM)
Ability to roll in heavy-duty equipment, improvements, and ground-up construction in the same 90% financing package.
Fixed rates
25-year term/amortization
10-year prepayment on SBA portion
If not purchasing real estate, you can also use SBA 504 to refinance existing real estate debt.
If you’re interested in learning more about how the SBA 504 loan can benefit your business related to real estate, don’t hesitate to reach out to us via email at Hello@Sbawallet.com . We can connect you with an outside lender who specializes in SBA loans and can guide you through the process.
SBA loan procedures sometimes get complex, so why not reach out to the right partners help you keep moving forward.
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