SBA loans are government-backed loan programs that may help eligible business owners finance owner operator commercial property. The two common programs for real estate are SBA 7(a) and SBA 504.
What is an SBA 7(a) loan?
The SBA 7(a) program is a general-purpose loan program that may be used for eligible business purposes, including purchasing owner operator commercial real estate. Terms and eligibility are set by the program and lender.
What is an SBA 504 loan?
The SBA 504 program is designed for financing major fixed assets such as owner operator commercial real estate. It typically involves a partnership between a lender and a Certified Development Company. Eligibility and terms vary.
What to consider
SBA loans have specific eligibility requirements and processes. Ramzi can help eligible business owners understand how SBA financing compares to other commercial mortgage options.
Loan approval is not guaranteed. All loans are subject to application, underwriting, credit approval, property review, program guidelines, and applicable state licensing requirements. Rates, terms, loan programs, and availability are subject to change without notice. This is not a commitment to lend. This article is for educational purposes only and is not financial, tax, or legal advice. FBT Bank & Mortgage is an Equal Housing Lender.
