SBA Lending

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The Small Business Administration (SBA) is a government organization created to connect small business owners to the resources they need to succeed. The SBA created their government guaranteed loan programs to address the challenges of securing small business financing.

The SBA offers loan programs for commercial real estate through their 7A and 504 products. This program makes it possible for owner occupied properties to secure loans with highly competitive terms and benefits. These loans can be used to purchase real estate, including land and buildings. SBA lending can also be use in the construction of a new building or renovating an existing building. SBA does require that a borrower occupy at least 51% of the total space of the property.

SunRidge Commercial Capital works to secure the most competitive rate and terms through a network of trusted lenders that specialize in SBA financing. Although these loans are guaranteed by the SBA, the lender programs and rates can vary based on the bank’s individual guidelines. Knowing the right lender can make a big difference to the client.

The main benefit of using SBA loans to purchase commercial real estate is that you have the partial backing of the U.S. government. Because of this guarantee, SBA loans feature less stringent requirements, longer repayment terms, and lower down payments compared to traditional bank loans. However, your business must meet certain eligibility requirements in order to qualify for an SBA loan:

• Operate as a for-profit company in the United States
•  Have a tangible net worth of less than $15 million
•  Have an average net income of less than $5 million after federal income taxes for the two years preceding your application
•  Businesses engaged in nonprofit, passive, or speculative activities do NOT qualify for SBA loans.

Features of SBA lending:

• Up to 90% Financing 
• Long-term up to 25 years on fixed and adjustable rate loans
• Can provide financing for projects that might otherwise not be available for some small business owners
• Can reduce a borrowers equity injection by providing higher leverage than a typical conventional loan
• Ability to renovate or expand a building 
• In some instances, additional money for working capital can be provided
• Includes programs for business acquisitions and buyout of partners
• Rural properties are eligible
• Loan amounts up to $5MM on 7(a) and up to $16.5MM on the 504 loan
• Eligible Properties
• All owner user property types are considered