- Purchase of land & building
- Land acquisition, along with new construction
- Remodeling/rehabilitation of an existing building
- Building expansion
- Equipment acquisition (with life expectancy of 10 years or more)
- No rolling stock
- Commercial Real Estate and Equipment Debt Refinance available
- Existing building – 51%
- New Construction – 60% immediately with the business occupying some additional space within three years, and up to 80% within 10-years. 20% of the building can be permanently leased
- Gas stations
- Hotels
- Fitness clubs
- Storage facilities
- Medical facilities
- Dentists/Doctors
- Industrial building
- Retail buildings
- Office buildings
- Car dealers
- Automotive repair
- Day care facilities
- Marinas
- Schools/Preschools
- Restaurants
- Skilled nursing
- Farms and Ranches
- Franchise/Dealer agreements require SBA approval in advance
- Others - please contact us for more information
Below are some of the examples of SBA defined Special Purpose Properties that require an additional 5% down due to the business type.
- Amusement Parks
- Auto Repair Centers with pits or in ground lifts
- Bowling Alleys
- Car Wash Properties
- Cemeteries
- Clubhouse
- Cold storage facilities where more than 50% of the total square footage is equipped for refrigeration
- Dormitories
- Farms, including dairy facilities
- Funeral home with crematoriums
- Gas Stations
- Golf Courses
- Hospital, Surgery Centers
- Hotels and Motels
- Mines
- Museums
- Nursing Homes, including assisted living facilities
- Oil Wells
- Quarries, including gravel pits
- Railroads
- Sanitary Landfills
- Sports Arenas
- Swimming Pools
- Tennis Clubs
- Theaters
- Wineries
- Speculative – i.e. developers involved in buying & selling real estate based on future market increases
- Non- profit Institutions
- Businesses engaged in immoral activities
- Gambling
- Lending or investments companies. Loan brokers are eligible
- Real property held for investment purposes
- Monopoly type businesses
- Pyramid sales
- Minimum of $250,000.
- Maximum of $18,000,000+ depending on overall loan structure
- An environmental questionnaire is required on all properties
- A TSA is required on all properties, except bare land that has never been farmed
- A Phase I environmental report may be required if additional investigation is needed.
- Gas Stations & automotive repair facilities will require a Phase I
- All environmental reports will require the contractor to sign SBA’s Reliance Letter.
- All appraisals must be addressed to the Participating Bank and the U.S. Small Business Administration.
- Appraisals must be completed by a State certified appraiser.
| Multi-purpose facility | 90% | * |
| Special Purpose facility | 85% | (hotels, gas stations, etc.) |
| Start-up business | 85% | (business less than 2-years old) |
| Start-up & Special Purpose facility | 80% |
*Storage Facilities & Equipment purchases qualify for financing up to 90% of cost
| Bank | $500,000 | 50% |
| SBA | $400,000 | 40% |
| Down Payment | $100,000 | 10% |
| Total | $1,000,000 | 100% |
| Bank | SBA | |
|---|---|---|
| Term | 10+ years | 10, 20 or 25 years |
| Amortization | 10-30 years | 10, 20 or 25 years |
| Bank | SBA | |
|---|---|---|
| Loan Fees | Minimum .5% | 2.15% |
| Attorney Cost | -- | $2,500 |
| Appraisal | market price est. - $4,500+ | |
| Environmental | market price est. - $ 800+ | |
| Title & Escrow |
Note: The above loan fees & costs are financed, except for the bank’s permanent loan fee.
Note: Note-Title, Escrow Fees & Taxes are not financed and can vary. All Property Taxes must be PAID current at funding.
- Prequalification from Capital Funding can be completed within 24 hours
- Final loan approval normally takes 2 to 6 days from receipt of a complete financial package
Advantages:
- Up to 90% financing
- Below Market Fixed Interest Rate
- Typically no outside collateral required
- Fully Amortized Loans for up to 25 years
Disadvantages:
- Prepayment Penalty
- Higher Loan Fees
- Two Loans vs. One Loan