COMMERCIAL REAL ESTATE SBA 7(a) LOANS
Ready to expand your business footprint?
Whether you're looking to purchase a new commercial property or refinance an existing one, our SBA 7(a) Commercial Real Estate Loans offer the flexibility and support you need. Designed with business owners in mind, our loans provide a reliable way to secure the space your business requires. With competitive rates and terms, we make it easier to invest in your future.
Our SBA 7(a) Commercial Real Estate Loans come with the following benefits:
Long-Term Loans
Up to 25 years:
Spread out your payments over a longer period, allowing for manageable monthly payments.No balloon payments:
Keep your finances predictable with fully amortized loans. Don’t gamble your financial future on what credit conditions will be in 5 or 7 years. Our SBA 7(a) loans eliminate the uncertainty of balloon payments, providing you with stability and peace of mind throughout the life of your loan.Lower Down Payments:
We typically require a down payment or equity of 10% although under certain circumstances 100% financing is available.Flexible Financing Options
Purchase or refinance:
Our loans cover both new acquisitions and refinancing of existing properties.Construction financing:
Finance the construction of new commercial spaces or renovation of existing properties under the SBA 7(a) program.Understanding the Process
Navigating commercial real estate lending can be complex, but with the right information, you can approach the process with confidence. Here’s what you need to know:
Property Eligibility
Owner-Occupied Requirement:
The property must be at least 51% owner-occupied for existing buildings and 60% for new construction.Loan Limits
Maximum Loan Amount:
The SBA 7(a) program allows for loan amounts up to $5 million, subject to SBA guidelines and lender criteria.Loan-to-Value Ratio:
Typically, we finance up to 90% of the property value.Pre-Approval
Pre-qualification process:
Get pre-approved to streamline your property search and negotiations.Property Appraisal:
A professional appraisal is required to determine the property's market value.Documentation Requirements
Purchase Agreement or Refinance Details:
Submit a purchase agreement for new acquisitions or provide detailed information on your existing mortgage if refinancing.Financial Statements:
We require up-to-date financial statements for both your business and the property.Environmental Reports:
Depending on the property type, you may need to submit an environmental report.Site Visit
Property Inspection:
A site visit will be conducted as part of our due diligence process before closing.SBA Loan Prepayment Penalties
For SBA 7(a) loans with a term of 15 years or more, there is typically a prepayment penalty if you pay off the loan within the first three years. The penalty is 5% of the prepaid amount in the first year, 3% in the second year, and 1% in the third year. This is crucial if you plan to refinance or sell the property soon after purchase.