SBA Commercial Loans

The SBA (Small Business Administration) is doing what it can these days to come up with some ways to help business owners obtain funding for their operations and, in some cases, purchase their buildings. This can be a great opportunity to own commercial properties at a time when traditional funding sources are drying up by the day.

Because of the complexities with getting loans guaranteed by the SBA< I highly recommend working with an experienced loan originator who has handled several SBA loan programs.

One of the recent loan programs by the SBA has a requirement that you actually purchase the commercial property where your business will be (or is already) located. This could be a great opportunity for a business owner to own the property they occupy. The requirement for this loan is the buyer/owner will put down 10% – 20% of the loan amount, the SBA will guarantee a loan for 40% of the amount and the bank will be responsible for the remaining amount. This way, the bank and the SBA are sharing the risk for the remaining amount of the loan. This makes it mush more palatable to the bank and helps the bank manage its risk at a time when bank risk is high.

Check it out with your local SBA expert. Also, check out www.sba.gov for more information. Your local bank may be a better resource for SBA programs they are participating in. Sometimes larger banks participate in more SBA loan programs than smaller local banks because of the amount of work required.

Check it out. This may be a great way for you to own the building in which you do business.

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About Michael
I am a Commercial Real Estate specialist working in the Northwest Suburbs of Chicagoland. The french fry blog belongs to my daughter. If you wish to reach her, please do so through me.

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