SBA 504 Loans for Commercial Real Estate
SBA 504 Loans for Owner-Occupied Commercial Real Estate Financing Up to 90% of Cost
Very few individuals realize that the SBA offers commercial real estate lending, but they do!
SBA 504 loans are not offered for apartment properties, but rather are available for owner occupied commercial properties including office buildings, hotels, daycare facilities, retail buildings and more. The commercial property must be greater than 51% owner occupied.
In addition, the SBA provides SBA 7a financings which feature greater overall flexibility and could be utilized not only for purchasing or refinancing commercial real estate, but for working capital, equipment finance and other uses.
Call us today toll-free at (833) APT-LEND to consult with a multifamily SBA 504 loan expert, or complete this form to arrange for a complimentary assessment.
Sample SBA 504 Financing Loan Terms
Loan Amount: Up to $14 million.
Loan Term: 20 – 25 Years (fully amortizing)
Rates: Starting at 5.50% (Prime + 1.25% – 2.75%)
Loan to Value: Up to 90% LTC (80% on hotels and motels)
DSCR: Minimum 1.20x DSCR on existing cash flow
Reserves: Taxes and Insurance
Credit Score: 680+
Assumability: Yes in event of property sale with nominal fee
Prepayment: 5-Year Minimum
Properties: Owner Occupied: Hotels, Restaurants, Office, Mixed Use, Retail, Gas Station/C-Store, Day Care, Medical Office, Assisted Living, Warehouse/Manufacturing, Self Storage, Industrial, Land (not multifamily and apartments).