Financing Special Purpose Properties

An SBA 504 loan can be ideal for financing special purpose properties that can be difficult to finance conventionally

Many banks consider financing special purpose properties risky because such properties are constructed for specific, limited uses, which means a large capital investment may be required to convert special purpose properties to a more general use.

Using an SBA 504 loan to reduce a commercial lender’s exposure to this risk can result in a better package for financing special purpose properties. Other benefits of the SBA 504 loan for financing special purpose properties include:

    • As low as 15% down keeps your cash working to grow your business
    • Below-market FIXED interest rates with payments fully-amortized over 20 years, no balloon
    • No limit on the total loan amount. Projects over $25 million can still qualify.
    • Finance real estate purchase, construction (including land), expansion, renovation and equipment/furnishings
    • No additional collateral required
    • Businesses implementing energy efficiencies may qualify for additional financing

The specific types of property the SBA considers single purpose properties are listed here. While some conventional lenders consider restaurants to be special purpose properties, the SBA does not.

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SBA 504 for Special Purpose Properties

Johnson’s Beach Resort

Johnson’s Beach Resort

$2.5 million
New owners revitalize
iconic Russian River resort

Imperial Automotive

Imperial Automotive

“TMC and the SBA allowed me to stay in the location where I’ve built my business,” says owner Kevin Reier.

Folktale Winery

Folktale Winery

Expanded with new winery, vineyard and tasting room: “It was a challenging deal, but TMC did a great job of managing the challenges,” says owner Greg Ahn.

Rush Creek Lodge

Rush Creek Lodge

Yosemite resort opens spring 2016: “Without the SBA piece from TMC we couldn’t have gotten this done,” says owner Lee Zimmerman.