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6 Benefits of SBA Loans for Commercial Real Estate

There is much talk of rising interest rates for commercial real estate loans. Small business owners who are interested in buying land or a building should know that SBA 504 Loans have multiple benefits over traditional loans - including substantially lower interest rates.

In addition, funds from SBA 504 Loans can be used not only for land and building purchases, but also for existing building and lot improvements, new construction, long-term equipment purchases and more.
Quick 6 Facts You Should Know for Commercial Real Estate Loans:

 

  1. Low down payments - Only 10% down for buildings or land
  2. Low interest rates – below market (as of July 17, 2013 – 5.232%)
  3. Long-Term Fixed interest rates for as long as 20 years
  4. 20-year fully amortizing terms – no balloon
  5. SBA 504 loans provide multiple benefits over traditional loans and helps your cash flow thereby increasing your likelihood of loan approval.
  6. Conventional loan products can require up to a 30% down payment which limits the owner's options.

Work with a MN SBA Loan Provider
In order to utilize SBA 504 loans for commercial real estate, you'll need to work with an SBA Certified Development Company along with your bank. There are several in the state, but we recommend the SBA 504 Loan provider, CMDC, in Andover, MN. They have a proven and proficient SBA loan process that allows our clients to close loans quickly and efficiently.

CMDC, a MN SBA 504 Loan Provider offers:

  • Pre-Qualification within 24 hours with CMDC's Preferred Lender status
  • Early determination of how much financing can be available
  • Creative gap financing solutions

>> Learn more about CMDC
>> See all the Benefits of SBA 504 Loans

Need a New Location for Your Business?

Premier Commercial Properties can help make your search easier

  • Search commercial properties for sale and lease
  • Contact us directly at 763.8622005

Marty Fisher is Commercial Real Estate Broker in Ramsey, MN since 2001.

Posted: August 2013