Small Business Administration Owner Occupied Commercial Real Estate Loans

SBA - Owner Occupied
Programs 504 & 7a

SBA 504 -Up to 90% Loan to Value on Commercial Real Estate acquisitions ,85% Loan to Value on Single Purpose Real Estate acquisition. Two Loans, conventional first mortgage with either a quarterly adjustible or a 5 Year Arm for 50% and a second loan from the SBA for the remaining loan at a fixed rate up to 20 years.

Property Types - Hotel/Motel, Gas Stations, Convienence Stores, Restaurants and Day Care.Retail Strip Centers or other Multi Unit Properties when Borrowers will
occupying at least 51% of the Leaseable Space.

Use of Proceeds - Acquire, construct or renovate owner occupied property

Standard Loan Structures - 50% First Mortgage, 40% SBA Bond Debenture Loan from a Certified Development Company at below market rates
25 Year Fully Amortizing First Mortgage, 20 Year fully Amortizing Second SBA Mortage

Note: Please inquire about this program. There are thresholds in terms of the business type, profitability and net worth of the business. There are also state specific programs targeting growth of specific types of business such as manufacturing etc.

SBA 7a - Up to 90% Loan to Value, 85% on Single Purpose properties, most industry types qualify. This is a government guaranteed loan.

Uses of Proceeds - Business Acquisitions, including professional practices and franchises. Machinery & Equipment - purchase or refinance, Start ups of a franchised business.

Loan Structures - First mortgage loan bases a a spread over the Prime Lending Rate

SBA Loan Guarantee Fees are paid directly to the U.S. Small Business Administration, fees vary based on loan/guarantee amount.

Note: Two Business's can purchase and both obtain SBA Loans as long as the
two exceed 51% of the total space.

Single Purpose Properties eg. Gas Stations, Restaurants, Garages, Retail, Office

Virtually any Business Except Lending Institutions, Insurance Companies, Gambling, Adult Entertainment or Real Estate Investment Companies.

All Loans Require Personal Guarantee

45-60 Day Turn Times

For Large Loans, See USDA B & I Program

Every transaction is specific and needs individual research and attention to
secure the best Commercial Loan.