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SBA Real Estate Loans

SBA Real Estate Loans

Helping small businesses become even more successful.

The Small Business Administration (SBA) has three loan programs for the purchase, refinance or construction of commercial real estate.

 

7(a) Real Estate

504 Loan Program

7(a) Pari Passu

Use of Funds

Owner-occupied commercial real estate purchase, refinance or construction

To purchase or construct owner-occupied commercial real estate

Owner-occupied commercial real estate purchase, refinance or construction

Industries

Most industries qualify; no nonprofits

Most industries qualify; no nonprofits

Most industries qualify; no nonprofits

Loan Types

Term loans

Term loans

Term loans

Loan Amount

Up to $5 million

Up to $11.25 million for most industries; higher for qualified manufacturing firms

Up to $7 million;
First loan: Up to $5 million SBA guaranteed;
Second loan: Up to $2 million U.S. Bank direct

Interest Rate

Based on LIBOR and WSJ Prime

Based on LIBOR and WSJ Prime

Based on LIBOR and WSJ Prime

Term

Up to 25 years

Lender loan (real estate): Typically 25 years; CDC Loan: Typically 20 years; Equipment loan: 10 years

Up to 25 years

Amortization

Fully amortized;
no balloon payments

Typically 25 years on first position; 20 years on the long-term (CDC) portion

Fully amortized;
no balloon payments

Prepayment Penalty

5% – first year
3% – second year
1% – third year

Prepayment applies

5% – first year
3% – second year
1% – third year
(For second loan, prepayment applies)

Collateral

Subject to property; additional collateral may be required

U.S. Bank loan: First mortgage on property being financed;
CDC loan: second mortgage on business real estate

Subject to property; additional collateral may be required

LTV/Advance Rates

LTV up to 90%

LTV up to 90%

LTV up to 90%

Equal Housing Lender Equal Housing Lender

Subject to credit approval and program guidelines. Some restrictions may apply. Financing maximums and terms are determined by borrower qualifications and use of funds.

Get Started Today

Call Us
888-722-3948

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