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    • Home
    • Everything At-A-Glance
    • Schedule a Call
    • CRE Financing Guide
    • Questionnaires
    • Tips for Getting Funded
      • Understanding the Process
      • Get the Help You Need
      • Non-Loan Services
    • About Us
      • Get to Know Us
      • Industry Partners
      • FAQ's
    • Contact Us

904-830-6747


  • Home
  • Everything At-A-Glance
  • Schedule a Call
  • CRE Financing Guide
  • Questionnaires
  • Tips for Getting Funded
    • Understanding the Process
    • Get the Help You Need
    • Non-Loan Services
  • About Us
    • Get to Know Us
    • Industry Partners
    • FAQ's
  • Contact Us

Buying Commercial Real Estate, Which loan is best for you?

Conventional Commercial Loans

  

Pros:

  • Flexible loan terms tailored to borrower strength.
  • No SBA fees, reducing overall costs.
  • Faster closing process with no government involvement.
  • No use restrictions on property leasing or occupancy.

Cons:

  • Higher down payments, typically 20%-30%.
  • Shorter repayment terms, often 5-20 years with potential balloon payments.
  • Stricter qualifications—strong credit and cash flow required.
  • Some loans have adjustable interest rates.

SBA 7(a) Loan for Commercial Real Estate

 

Pros:

  • Lower down payment, as low as 10%-15%.
  • Longer loan terms—up to 25 years.
  • Can finance real estate plus working capital or renovations.
  • Easier approval for small businesses.

Cons:

  • Loan cap of $5 million, limiting high-cost projects.
  • Higher interest rates than SBA 504 and some conventional loans.
  • Personal guarantee required for 20%+ owners.
  • SBA fees increase loan costs.

SBA 504 Loan for Commercial Real Estate

 

Pros:

  • Low 10% down payment preserves cash.
  • Fixed, low-interest rates on the CDC portion.
  • Long 25-year repayment terms.
  • Can finance projects up to $20 million.

Cons:

  • Property must be 51% owner-occupied (existing) or 60% owner-occupied (new).
  • Two-lender structure complicates approvals.
  • Funds limited to real estate and equipment—not working capital.
  • SBA and CDC fees apply.

Which Loan is Right for You?

  

  • Need fast, flexible financing? → Conventional loan
  • Buying real estate plus covering expenses? → SBA 7(a) loan
  • Looking for low-cost, long-term financing? → SBA 504 loan

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  • Home
  • Everything At-A-Glance
  • Schedule a Call
  • CRE Financing Guide
  • Questionnaires
  • Understanding the Process
  • Get the Help You Need
  • Get to Know Us
  • FAQ's
  • Contact Us

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