Learn how you can qualify for an SBA commercial real estate loan with 100% financing and grow your business.
I remember when I first started my online marketing business I was renting a small office space in a crowded building. I was paying a lot of money every month for a place that was barely big enough for me and my team. It felt like I was wasting my hard-earned cash on something that didn’t belong to me.
Then one day, I came across an amazing opportunity.
I found out that I could buy my own commercial property with no money down using an SBA loan. I was skeptical at first, but after doing some research, I realized that it was possible and beneficial for my business.
So, I decided to take the plunge and apply for an SBA commercial real estate loan with 100% financing. And guess what? It was one of the best decisions I ever made.
I want to show you how to qualify for an SBA loan with 100% financing and what are the benefits of owning your own commercial property.
Are you tired of paying rent for your business location?
Do you want to own your own commercial property and build equity?
Do you think you can’t afford to buy commercial real estate because of the high down payment and closing costs?
If you answered yes to any of these questions, then you should consider applying for an SBA commercial real estate loan with 100% financing. An SBA loan is a type of business loan that is guaranteed by the Small Business Administration (SBA), a federal agency that supports small businesses.
It can help you buy commercial real estate with no money down, as long as you meet certain requirements and criteria.
What is an SBA Commercial Real Estate Loan?
An SBA commercial real estate loan is a type of financing that allows you to buy 51% or more owner-occupied commercial property. Owner-occupied means that your business needs to occupy at least 51% of the total commercial space. The remaining space can be leased out to other tenants or used for future expansion.
An SBA commercial real estate loan can be used to buy various types of properties, such as office buildings, retail stores, warehouses, hotels, restaurants, and more. You can also use the loan to purchase land, construct new buildings, or renovate existing ones.
An SBA commercial real estate loan is different from a conventional bank loan in several ways.
First, an SBA loan has lower interest rates and longer repayment terms than a bank loan. This means that your monthly payments will be more affordable and manageable.
Second, an SBA loan has more flexible eligibility requirements than a bank loan. This means that you can qualify for an SBA loan even if you have a low credit score, limited collateral, or insufficient cash flow.
Third, an SBA loan offers 100% financing for qualified borrowers. This means that you don’t need to make any down payment or pay any closing costs when you buy commercial real estate with an SBA loan.
How to Qualify for an SBA Commercial Real Estate Loan?
To qualify for an SBA commercial real estate loan, you need to meet the following requirements:
Your business must be a for-profit entity that operates in the United States or its territories.
Your business must have fewer than 500 employees and meet the SBA’s size standards for your industry.
Your business must have a tangible net worth of less than $15 million and an average net income of less than $5 million after taxes for the past two years.
Your business must have a good credit history and demonstrate the ability to repay the loan.
Your business must occupy at least 51% of the commercial space that you are buying with the loan.
Your business must have been in operation for at least two years and have a track record of making lease payments comparable to that of the new SBA loan payments.
If your business meets these requirements, then you can apply for an SBA commercial real estate loan with 100% financing.
However, if your business has been in operation for less than two years, or if you are expanding and buying commercial real estate for an additional location, then you may need to make a 10% down payment.
To apply for an SBA commercial real estate loan, you need to prepare some documents and information, such as:
A detailed business plan that explains the purpose and goals of your business, as well as how you plan to use the loan proceeds.
A personal financial statement that shows your assets, liabilities, income, and expenses.
A personal resume that highlights your education, work experience, skills, and achievements related to your business.
A personal tax return for the past three years.
A business tax return for the past three years.
A profit and loss statement and balance sheet for the current year.
A cash flow projection for the next year.
A copy of the purchase agreement or contract for the commercial property that you are buying with the loan.
A copy of the appraisal report or valuation report for the commercial property that you are buying with the loan.
A copy of the environmental report or clearance for the commercial property that you are buying with the loan.
Once you have gathered all the necessary documents and information, you can submit your loan application to a lender that participates in the SBA loan program.
The lender will review your application and determine if you are eligible for an SBA loan. If you are approved, the lender will issue a loan commitment letter that outlines the terms and conditions of the loan.
Then, the lender will then submit your application to the SBA for final approval. The SBA will guarantee up to 85% of the loan amount, which reduces the risk for the lender and makes it easier for you to get approved.
Additionally, the SBA will also charge a guarantee fee, which is a percentage of the guaranteed portion of the loan. BUT, The guarantee fee can be rolled into the loan amount and paid over time.
The whole process of applying for and getting an SBA commercial real estate loan can take anywhere from 60 to 90 days, depending on the complexity of your case and the availability of funds.
However, if you work with Spartan, you can get an SBA loan faster and easier. Spartan is an online platform that connects you with multiple lenders that offer SBA loans for commercial real estate. You can fill out one simple application and get multiple offers from different lenders within minutes.
You can then compare and choose the best offer that suits your needs and preferences.
Spartan also provides you with a dedicated loan advisor who will guide you through every step of the process and help you close your loan as soon as possible.
What are the Benefits of Buying Commercial Real Estate with an SBA Loan?
Buying commercial real estate with an SBA loan has many benefits for your business, such as:
You can save money on rent and build equity in your property. Instead of paying rent to a landlord every month, you can pay off your mortgage and own your property outright. You can also benefit from the appreciation of your property value over time.
You can generate income from leasing out the extra space in your property. If your business occupies less than 100% of the commercial space, you can lease out the remaining space to other tenants and earn rental income. This can help you cover your mortgage payments and increase your cash flow.
You can enjoy tax deductions and depreciation benefits. You can deduct the interest payments on your mortgage, as well as the property taxes and maintenance expenses, from your taxable income. You can also depreciate the cost of your property over its useful life and reduce your tax liability.
You can improve your business image and reputation. Owning your own commercial property can enhance your credibility and professionalism in the eyes of your customers, suppliers, partners, and employees. It can also give you more control over your business environment and operations.
You can expand or modify your business space as needed. If your business grows or changes, you can easily adjust or improve your commercial space to suit your needs. You don’t need to worry about getting permission from a landlord or moving to a new location.
Conclusion
Buying commercial real estate with an SBA loan is a smart way to grow your business and achieve financial freedom. An SBA loan can help you buy commercial real estate with no money down, low interest rates, long repayment terms, and flexible eligibility criteria.
If you are interested in applying for an SBA commercial real estate loan, contact Spartan today.
Spartan specializes in SBA loans for commercial real estate. We can help you find the best SBA loan offer from multiple lenders within minutes. Further, we can also help you close your loan faster and easier with expert guidance and support.
Don’t miss this opportunity to buy commercial real estate with $0 down using an SBA loan. Schedule a consultation with Spartan today and get started on your journey to business success.
