The prospect of large down payments needed to secure financing to purchase commercial real estate through conventional bank financing might discourage potential buyers of the properties you are marketing. Here are some benefits of the SBA 504 loan program that might allow more people to afford commercial real estate:
Advantages for Brokers
- Long-term – 20 or 25-year term for owner-occupied real estate.
- Fixed-rate – SBA 504 rate fixed for the life of the loan.
- Less down – Lower cash injection required versus conventional bank financing.
- Lower risk – Make your client’s financing need more attractive to lenders by reducing the bank’s risk.
- Specialized properties – Lowers the risk to lenders for investing in special use properties (i.e. hotels).