Leveraging SBA Loans for Commercial Real Estate

Numerous small businesses rely on SBA loans to get the funding they need to stay afloat. However, a large number of property owners fail to realize that they also qualify for these loans. Two types of loans are available to those owning commercial real estate. These are SBA 7(a) and 504. Learn about both so that you get the money you need.

Various facilities qualify to get a SBA 7(a) loan. For example, car shops and child care centers can get this type of loan in order to acquire a building to run the business. Small retail stores can also get this loan. Additionally, businesses that work in hospitality such as restaurants and hotels can also get a 7(a) loan in order to get commercial real estate.

In the event you are running a business that would not qualify for a 7(a) loan, you will likely qualify for an SBA 504 loan. These SBA loans give business owners all-purpose funding, you get the property you need to run your company. You can get either fixed or variable interest rates on this type of loan.

After reading all this, you find decide that an SBA loan is right for your business. Now comes the time to acquire the funding so that you can get all essential real estate. Due to the fact that these loans are generally more affordable than comparable lending options and are reliable, many businesses apply to get them. That means it is quite competitive to get the funds you need to purchase commercial real estate. However, the Small Business Administration leaves the handling of all loan applications to a qualified Preferred Financial Services provider. These companies tend to be able to get better rates and terms than what you would be able to get from a commercial real estate developer.

Many business owners wonder if one type of SBA loan is better than the other. The truth is that it simply comes down to what you need for your own business. For example, a 504 loan has a higher minimum than the 7(a) loan, so if you do not need as much money as someone else, then it would be best to get less money. Interest rates, term payments and down payments all differ as well, so review all these factors before coming to a decision.


SBA loans have been real life savers to business owners in the past, and you can benefit, too. Do your homework so that you acquire the best loan for your company.


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