Maximum Loan Amount
As little as 2 weeks with preferred SBA lenders
Commercial real estate loans can differ significantly depending on the type of property being financed. If you are interested in buying and financing a piece of land, then developing a custom office building on that land, there are commercial financing programs that will help you do that.
If you’re interested in purchasing an existing warehouse, the commercial lending companies will be able to help you do that, too. The two different loans will look quite different, though. A loan for an existing piece of land, or an existing warehouse, will be different from a loan for a speculative building that doesn’t yet exist.
In most cases, lenders will be happier when the commercial real estate will be occupied by the owner of the property. Just like a mortgage for a home, the collateral for the loan will be the property, and the financing company will prefer a property that’s occupied by someone who has a big stake in the care and management of the property!
With reasonable interest rates ranging from 6-13%, SBA loans are an attractive option to many small business owners. Depending on the type of SBA loan you choose, you could have fixed or variable interest rate. Keep in mind that individual lenders have the option of adding an additional spread to the base rate of the loan when figuring your final rate with a maximum increase of 2.75%.Both the 7(a) and 504 loans have fees that can be included in the total cost of the loan.
A loan through the Microloan Program does not have fees but has a much lower cap on the total loan amount. Repayment on SBA loans ranges from 5-25 years depending on the amount and purpose of the loan.
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