Important Things to Know About SBA Commercial Real Estate Loans


If you’re a small business owner looking to buy commercial real estate, you may want to consider an SBA loan. These loans are backed by the government, which helps reduce the risk for lenders. They also have lower down payment requirements and longer repayment terms than traditional commercial real estate loans. However, there are some important things to know before you apply for an SBA real estate loan.

The SBA is an independent federal agency that was created in 1953 to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise, and to maintain and strengthen the overall economy of the United States. It has delivered millions of dollars in loans, loan guarantees, contracts and other forms of assistance to America’s entrepreneurs and small businesses since its creation. Read more

As part of its mission, the SBA also works to encourage more people to start businesses and to promote the expansion of existing ones. It also advocates on behalf of small businesses to federal agencies and large business organizations. Additionally, it is responsible for ensuring that those who need disaster relief receive it as quickly as possible.

SBA real estate loans are a type of financing offered through the Small Business Administration. These loans are issued by private lending institutions and backed by the U.S. government, which gives them a higher credit rating than typical loans. This makes them more accessible to smaller businesses, who might otherwise be turned down for traditional business loans due to low credit scores and other factors.

While these loans are backed by the federal government, they are still private financing. You will apply for an SBA loan through a lender such as a bank or credit union, and then you will need to meet certain requirements in order to qualify for the financing. This includes a minimum credit score, a business plan and other documents.

You must pay back a commercial real estate loan in accordance with the terms of your agreement. If you don’t, the lender can take action against you. This can include seizing your company’s assets or personal property, depending on the terms of the contract. If you can’t afford to repay the loan, you will need to negotiate with the lender to come up with an alternative solution.

The SBA offers several different types of financing for business owners who need to purchase or renovate real estate. The two most common are the SBA 7(a) loan and the SBA 504 loan program. Both offer benefits like lower interest rates and down payments than conventional commercial real estate loans, and they also report on-time loan payments to the major credit bureaus, helping you build your business credit. If you are interested in applying for a small business administration real estate loan, you can get started by using Nav’s free application. Our team can help you determine whether you meet the eligibility requirements for an SBA real estate loan.


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