Can an SBA 504 Loan Help Me Obtain Commercial Real Estate Available?
With all of the commercial real estate available in Central Ohio, are you considering making an investment? If so, you may also be considering your options for financing that purchase. Did you know that The Small Business Association’s (SBA) 504 Loan Program may be able to provide your small business with a loan for major fixed assets such as land and buildings for development?
Your goal of obtaining commercial property may be closer in reach than you think!
An SBA-504 loan is designed to help small businesses buy, construct or improve available commercial real estate property and land. It may also help you buy and install equipment.
- It is designed to help provide financing for your business to purchase fixed assets
- The rates are typically below market
The 504 program is tailored to help meet the growing needs of a small business by distributing the loan’s payment among three different parties:
- As the business owner, you are required to contribute a minimum of 10%
- A conventional lender will then contribute 50% – this is typically a bank
- 3. The Certified Development Company (CDC) then contributes the remaining 40%m(A CDC is a non-profit corporation set up to support economic growth in the local area)
In order to qualify for an SBA-504 loan to buy that commercial real estate available, you must meet some requirements. First and foremost, your business must meet the SBA’s definition of a small business:
- Your business must be considered “for-profit”
- 2. Your business must be organized as a sole proprietorship, corporation, or limited-liability corporation (LLC)
- 3. Your business must have a tangible net worth no greater than $15 million and average net profit (after taxes) below $5 million in the last 2 years it was operating
- You must plan to use at least 51% of the property for your own operations within one year of ownership of the commercial real estate Columbus Ohio has to offer
- If the building is newly constructed, you must plan to use 60% immediately and occupy 80% of it
Are you eligible? There are numerous advantages that eligible businesses will want to take advantage of, including the following:
- SBA-504 loans have a long-term fixed rate of 20 years on a real estate loan and 10 years on equipment
- Interest rates are below market-value
- There are no balloon payments on SBA 504 loans
- Closing costs on the property (such as the fees for a Columbus Ohio property appraiser) may be included in the financing
Are you looking for assistance with commercial real estate, obtaining financing, or a qualified property appraiser in Central Ohio? Since 1938, The Robert Weiler Company has been the expert in the field. Begin working with a seasoned broker who can answer all of your questions regarding the commercial real estate available
in the Central Ohio region, by calling 1-614-221-4286.