top of page

Using the SBA 504 Loan Program to Purchase Owner-occupied Commercial Real Estate

Writer's picture: SBA WalletSBA Wallet

Updated: Jul 9, 2024

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.

5 views0 comments

Recent Posts

See All

New SBA Fee Starting October 1st?

Starting on October 1st, 2024, the SBA has announced updated SBA 7a fees for SBA Fiscal Year 2024 (Effective 10/1/2024- 9/30/2025) Okay...

Kommentare


bottom of page