Benefits of Closing CRE Deals with the SBA 504 Loan

The commercial real estate market is slowly recovering after the challenges brought on by the pandemic. Business owners looking to buy, expand, or refinance major fixed assets like owner-occupied commercial real estate and heavy equipment may find a solution in the Small Business Administration (SBA) 504 loan program.

This program offers a public-private lending solution that provides business owners with borrower-friendly terms to help bridge the financing gap and close more deals. With only a 10% down payment requirement compared to the typical 25% for conventional loans, the SBA 504 loan can make commercial real estate more accessible to a wider range of clients.

Additionally, the SBA 504 loan features fixed, below-market interest rates for a 10-, 20- or 25-year term, providing business owners with more affordable monthly mortgage payments and predictable expenses over the life of the loan. The program also allows for property personalization, financing renovations, land purchases, and energy-efficient upgrades.

Commercial real estate professionals who are familiar with the SBA 504 loan program can gain a competitive advantage in the current market. By understanding the benefits of this program and partnering with certified development companies like SomerCor, agents can become the go-to resource for business owners seeking financing solutions.

For more information on how the SBA 504 loan program can help close commercial real estate deals, reach out to the loan origination team at SomerCor or visit www.somercor.com. Eric Bacon, a senior vice president and loan officer at SomerCor, can provide further insights into the program and its benefits.