Business Loan For Commercial Property

Small business administration s sba 504 loan program.

Business loan for commercial property. Small business owners thinking of purchasing or renovating commercial real estate or purchasing equipment to grow or expand their businesses should consider the u s. Small business administration sba financing is subject to approval through the sba 504 and sba 7 a programs. A purchase loan as the name suggests is designed for purchasing property.

However it s important to note that purchasing a commercial property isn t the same as purchasing an apartment especially through a business loan. Commercial property acquisitions have the potential to be an outstanding investment. For owner occupied commercial real estate loans oocre a loan term of up to 15 years and owner occupancy of 51 or more are required.

Commercial loans are a reality and often a necessity for thousands of small business owners who want to buy their own premises. Subject to credit approval. 100 commercial real estate financing positives negatives loan options.

The 504 loan provides small businesses access to the same type of long term fixed rate financing enjoyed by larger firms. The most common business property loan offering is a 5 year fixed rate with a 25 year amortization. This program is typically available as a 1 year fixed a 5 year fixed or a quarterly floating rate with a 25 year amortization all of which adjust with the prime rate.

But commercial property loans come with their own unique set of rules and factors that affect how much you can borrow and what you ll pay to do so. This type of financing comes in large loan amounts with long repayment terms up to 20 years. Commercial real estate financing options in most cases you ll choose from a few common types of commercial loans.

Some restrictions may apply.