We work primarily with banks, credit unions and other financial institutions to provide conventional and SBA financing on all commercial properties. They must be zoned for commercial use. Property types include office, retail, industrial, hospitality (hotels, restaurants, cafes, sport facilities), healthcare (medical centers, hospitals, nursing homes, assisted living facilities), mixed use (commercial and residential), self-storage and multifamily (5+ residential units) properties. We do not provide financing on residential properties.
If a property is leased out to third party tenants as an investment property it qualifies for conventional financing. Since commercial loans are rarely sold, each bank has a different perspective as to the long term outlook of their portfolio. As a result banks can vary widely by different criteria they look for and ultimately offer different rates, terms and leverage. This is where we can help. A business owner purchasing a commercial property to move into can qualify for conventional, SBA 504 or SBA 7(a). The primary criteria for qualifying for an SBA loan lies in the amount of space the business will occupy in the new property. To be eligible for an SBA loan, your business must occupy at least 51% of the square footage of the building.
We explore options that make the most sense for you, not what a particular bank prefers to do. We have the options, network and relationships to make your transaction more than a transaction; we make it personal. Here are a few example scenarios based off a $1MM purchase price for a business that will be occupying the commercial property, accounting for at least 51% of the square footage.
Your financing would look like this:
50% – $500k loan #1 with one of our lending partners
40% – $400k loan #2 with the SBA (we will arrange this for you)
10% – $100k down payment
This option tends to be the most time consuming of all three options because it requires multiple approvals but in most cases can offer the best terms. It has come complexities that we will make sure and guide you through.