Purchasing real estate is not just a good investment for your small business, it can also help reduce your operating costs and keep more cash in your business.
Whether you need a new location, more square-footage or financing to purchase a leased property, you may be able to get small business financing to fund real estate purchases.
Depending on your business type, size, revenue and geography, there is sure to be a location to fit your needs.
Many different small business loan types are available to purchase real estate, both from commercial banks and non-traditional lending sources.
Conventional business loans are available for real estate purchase as term loans from banks Businesses needing more than $250,000, as well as those with good credit and heavy capitalization, are good fits for conventional small business financing.
One of the best options for small business owners is a Small Business Administration (SBA) loan. These are government-guaranteed loans made to borrowers by financial institutions and generally have lower rates and more flexible terms.
SBA 504 loans are often called SBA Commercial Real Estate Loans and can be used for purchasing an existing building, land or land improvements, or constructing or renovating facilities. This flexibility makes an SBA 504 loan an effective option for a real estate loan.
An SBA 7(a) loan is another option. These small business loans are term loans – with amounts ranging from $50,000 to $5 million – that can be used for commercial real estate, business acquisition, equipment, working capital, debt refinancing and more.
Connect2Capital can help match you with an SBA lender that makes SBA small business loans to purchase real estate.
Be sure and shop around for the best rates and terms for your business when seeking commercial real estate financing. Different lenders can offer unique products to suit your business, and both banks and non-traditional lenders can help guide you during the application process.
Community Development Financial Institutions (CDFIs) are a specialized source for small business financing. These mission-driven organizations are dedicated to improving communities through small business investments, and real estate purchases can have a transformational impact on communities that need to create jobs.
Business expansion is required to stay competitive. Don’t get fenced in by your current business property – get funding for real estate purchase and put yourself on a path to growth. Let Connect2Capital match you with a lender that makes small business loans to purchase real estate.