SBA loans for commercial real estate are made available through the federal program called SBA 504, which is administered by local, regional, and national commercial banks, to help small businesses acquire real estate to upgrade their businesses.
Here is how you can go about acquiring an SBA 504 loan to improve your business.
Finding the right property
The first step in obtaining an SBA 504 loan is finding the right property which can be used upgrade your business. It will only require a 10% down payment to apply for this loan, and your business will have to occupy at least 51% of the property. You would have the option of leasing out the remaining space to another business, so as to acquire rental income which you could then use to apply toward business expenses.
Engage a real estate lawyer
You’re much better off to engage the services of a competent real estate lawyer, because some of the details involved in commercial real estate and in an SBA loan, can become very tricky. You won’t want to make a misstep about a building you are attempting to acquire for your business, and a good lawyer will be able to point out all the advantages which you can use to get the most out of your SBA 504 loan.
Collect all your financial statements
In order to be approved for an SBA 504 loan, you will need to gather up all your financial statements, and provide a clear statement of the business purpose for acquiring the commercial real estate you have in mind. Part of your financial documentation should be a justification of how the loan money will be used to make your business profitable within it specified time frame.
You should also be able to demonstrate that you have a clear understanding of all costs involved in establishing yourself at the new building. You don’t really have to be an expert in property management in order to make an SBA 504 loan work for your business, and to achieve real success, but you will have to show how the SBA loan will help you achieve your business objectives.
SBA loans through Mossberg Strategic Capital
We are always very glad to work with small businesses who are trying to acquire an SBA loan, and we offer very competitive rates. Contact us at Mossberg Strategic Capital with any questions you may have about SBA loans, or about how we may be of service to you.