{"id":20764,"date":"2022-08-01T16:02:51","date_gmt":"2022-08-01T23:02:51","guid":{"rendered":"https:\/\/www.tmcfinancing.com\/?p=20764"},"modified":"2022-08-02T17:01:44","modified_gmt":"2022-08-03T00:01:44","slug":"purchase-commercial-property-sba-504-loan-2","status":"publish","type":"post","link":"https:\/\/www.tmcfinancing.com\/es\/purchase-commercial-property-sba-504-loan-2\/","title":{"rendered":"Purchase Your Commercial Property Now with an SBA 504 Loan: 3 Key Benefits"},"content":{"rendered":"

\"\"<\/a><\/p>\n

Purchase Your Commercial Property Now with an SBA 504 Loan: 3 Key Benefits<\/strong><\/p>\n

If you\u2019re a small business owner who leases commercial property, you should explore purchasing it now with a U.S. Small Business Administration (SBA) 504 loan<\/a>. The SBA 504 loan program helps small business owners get long-term control over real estate occupancy costs \u2013 a benefit that\u2019s particularly important in the current economic environment of rising rents coupled with inflation \u2013 while gaining significant financial benefits.<\/p>\n

In addition to construction, acquisition, and renovation of commercial properties (or refinancing existing loans for those purposes<\/a>), the SBA 504 loan program helps businesses in hard-to-finance or specialized sectors like retail, restaurants, assisted living, and childcare. It\u2019s also a great option for businesses with higher real estate and fixed-asset costs, such as warehousing, distribution, and manufacturing.<\/p>\n

Outstanding benefits for small businesses that currently lease property<\/strong><\/p>\n

Every small business owner who leases a property should look into purchasing it with an SBA 504 loan \u2013 here\u2019s why purchasing your property now makes great business sense:<\/p>\n

    \n
  1. La <\/strong>financial benefits that you gain<\/strong><\/a> will likely more than offset costs<\/strong>. If you\u2019ve never considered buying your industrial property and equipment or have put it on the back-burner because rising interest rates have thrown your plans off course, have a conversation with a business development officer from a certified development company (CDC) in your area \u2013 and if your business is located in California, Arizona, Nevada, or Oregon, contact TMC Financing today<\/a>.Current SBA 504 interest rates<\/a> are still advantageous for long-term borrowers and with loan terms as long as 25 years<\/a>, many business owners find that their monthly SBA 504 loan payments<\/a> are on par with (and often less than) current lease payments. Unlike your lease payment, though, your SBA 504 payment won\u2019t change over the lifetime of the loan \u2013 but your lease payment certainly will.<\/li>\n
  2. Commercial real estate will always be an excellent long-term investment<\/strong> and it\u2019s a smart financial move to make it your investment<\/a>, not someone else\u2019s. Owning your property gives you control over your business\u2019s long-term occupancy costs and you gain significant short- and long-term financial advantages, from tax breaks and inflation hedges<\/a> to potential additional income and the accumulation of equity, helping you build generational wealth.<\/li>\n
  3. La <\/strong>SBA 504 loan\u2019s flexible criteria<\/strong><\/a> mean that you\u2019re likely to meet <\/strong>basic eligibility requirements<\/strong><\/a>.<\/strong> Your business must be for-profit and your business\u2019s occupancy of the building must be at least 51% for existing buildings or at least 60% for new construction. Your business also has to meet basic size standards to meet the \u201csmall business\u201d qualification. A business development officer can work through additional details or questions that you have but rest assured: Most small businesses are eligible for the SBA 504 loan program.<\/li>\n<\/ol>\n

    How SBA 504 financing works<\/strong><\/p>\n

    SBA 504 loans\u202finvolve a CDC and a partnering bank. Your down payment, also called owner equity, is typically 10% for most SBA 504 loans. Here\u2019s an example of how that looks for a $2 million deal:<\/p>\n