SBA Commercial Real Estate Loans
What You Can Use an SBA Loan For
SBA lending through its advanced technology platform. The online application is streamlined and efficient, enabling business owners easy access to low rates and long-term loans to preferred SBA lenders.
● $350k to $5MM
● For purchase or refinance of CRE
● 25-year fully amortizing term
As this is an SBA loan for real estate investment, and real estate investment only, the answer to this question is pretty easy—small business real estate investment.
But what does that entail, exactly? Well, this is how the SBA defines small business real estate investment:
● The purchase of existing buildings
● The purchase of land and land improvements, including grading, street improvements, utilities, parking lots and landscaping
● The construction of new facilities or modernizing, renovating or converting existing facilities
● The purchase of long-term machinery
● The refinancing of debt in connection with an expansion of the business through new or renovated facilities or equipment
To be sure, you can’t use an SBA 504 loan to refinance pre-existing debt or for working capital, so if you’re looking for a more versatile loan, then consider your other SBA real estate loan option, the SBA 7(a) loan program.
Basic Eligibility Requirements:
- Operating business must occupy 51% or more of square footage
- 3 years historical cash-flow documents (tax returns and year-end P&L and BS)
- Business DSCR of 1.15:1
- 675 and up FICO
- 3 year declining prepayment penalty: 5%, 3% 1%Collateral Info:
- 85% to 90% Loan to Value cap
- If LTV is >85% additional collateral may be required
- Most commercial property types
SBA Working Capital Loan
- Business Application
- Personal Financial Statement of each principal
- Summary Letter — tell us about the deal, the good, bad & ugly.
- Collateral List — Either the equipment utilized as collateral and/or the equipment that being purchased.
- A/R Aging Summary
- YTD (Year to Date) Financial
- Real Estate owned with debt schedule