[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_column_text]![\"\"](\"https:\/\/www.tmcfinancing.com\/\/wp-content\/uploads\/2017\/08\/AdobeStock_71618507-1024x682.jpeg\")
Congratulations! You are considering buying a commercial building for your business. This is a big step, one that should be thoroughly researched beforehand to ensure you are covering all your bases. What are some things you should be asking before purchasing property? We\u2019ll address four of the most important questions to help guide you through the process.<\/p>\n
Question 1: What Location(s) is Best for my Business?<\/b><\/p>\n
Where will your business be supported and grow?<\/i> This is the first question to ask when looking at commercial buildings to buy. There are a series of checks to make sure you are gravitating to the right area:<\/p>\n Question 2: What Does The Building Need To Get Up And Running?<\/b><\/p>\n Once you have chosen a location, it\u2019s time to assess the building and determine how much work is necessary before it can be up and running. Understanding exactly how much work needs to go into your building will factor into questions about building cost and financing.<\/p>\n Question 3: How Will I Finance My Building Purchase? <\/b><\/p>\n Of course, one of the most important questions about your potential new building is: can I afford it? Many business owners might imagine owning a building is beyond their means, but there are some great financing options you can take advantage of.<\/p>\n The most affordable and accessible financing option is the Small Business Administration\u2019s (SBA) 504 loan program. It is specifically designed to help small businesses by providing capital with advantageous terms to acquire land, new construction, existing real estate, and equipment.<\/p>\n A 504 loan is a partnership between a conventional lender and a Certified Development Company (CDC), which is a nonprofit organization that administers the 504 program on behalf of the SBA and services the loan. The loan has three parts:<\/p>\n [\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner][vc_round_chart stroke_width=”2″ tooltips=”” values=”%5B%7B%22title%22%3A%2250%25%20Conventional%20Lender%22%2C%22value%22%3A%2250%22%2C%22color%22%3A%22blue%22%7D%2C%7B%22title%22%3A%2240%25%20CDC%22%2C%22value%22%3A%2240%22%2C%22color%22%3A%22turquoise%22%7D%2C%7B%22title%22%3A%2210%25%20Borrower%22%2C%22value%22%3A%2210%22%2C%22color%22%3A%22green%22%2C%22custom_color%22%3A%22%236ab165%22%7D%5D”][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner][vc_column_text]Prequalifying for a loan is a great way to determine what you can afford and what your monthly payments will be. You can prequalify for a 504 loan in 48 hours or less, (the prequalification process through TMC Financing averages just 18 hours). This is not the same as loan approval, but it is a valuable organizational aid and timesaver, and will give you a solid idea of what buildings are within your budget.<\/p>\n Question 4: Can the Property Be Made More Environmentally Friendly and Economically Sustainable?<\/b><\/p>\n Environmental sustainability is the way of the future, and it can also be extremely economically beneficial to your business. In the sunny climes of California, the solar industry is booming, and solar energy is a particularly easy choice as an energy source.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner width=”1\/6″][\/vc_column_inner][vc_column_inner width=”2\/3″][vc_single_image image=”6793″ img_size=”full” onclick=”link_image”][\/vc_column_inner][vc_column_inner width=”1\/6″][\/vc_column_inner][\/vc_row_inner][vc_row_inner disable_element=”yes”][vc_column_inner el_class=”greencard” width=”2\/3″ css=”.vc_custom_1503945661564{margin-bottom: 20px !important;border-top-width: 4px !important;border-right-width: 4px !important;border-bottom-width: 4px !important;border-left-width: 4px !important;padding-top: 15px !important;padding-right: 15px !important;padding-bottom: 0px !important;padding-left: 15px !important;border-left-color: #b5e61d !important;border-left-style: solid !important;border-right-color: #b5e61d !important;border-right-style: solid !important;border-top-color: #b5e61d !important;border-top-style: solid !important;border-bottom-color: #b5e61d !important;border-bottom-style: solid !important;}”][vc_column_text]<\/p>\n [\/vc_column_text][ultimate_icon_list icon_size=”14″ icon_margin=”5″][ultimate_icon_list_item icon=”Defaults-chevron-right” icon_color=”#1f497d” content_font_size=”desktop:14px;” content_font_color=”#1f497d”]No limit to the number of 504 projects[\/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-chevron-right” icon_color=”#1f497d” content_font_size=”desktop:14px;” content_font_color=”#1f497d”]No limit to the amount of total financing – projects in excess of $25 million qualify[\/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-chevron-right” icon_color=”#1f497d” content_font_size=”desktop:14px;” content_font_color=”#1f497d”]The SBA\/CDC portion (2nd<\/sup> mortgage) – maximum $5.5 million per project<\/strong>[\/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-chevron-right” icon_color=”#1f497d” content_font_size=”desktop:14px;” content_font_color=”#1f497d”]Cost of renewable energy equipment can be added to the loan amount to save working capital[\/ultimate_icon_list_item][\/ultimate_icon_list][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_column_text]<\/p>\n The SBA\u2019s Green Energy Program<\/a> encourages borrowers to pursue energy-efficiency measures by offering a larger loan amount ($5.5 million per project) and financing for an unlimited number of projects.<\/strong><\/p>\n [\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner][vc_column_text]The SBA\u2019s Green Energy Program<\/a> encourages borrowers to pursue energy-efficiency measures by offering a larger loan amount ($5.5 million per project) and financing for an unlimited number of projects.[\/vc_column_text][vc_column_text]<\/p>\n There are two ways to qualify for a 504 energy-efficiency loan: reduce energy consumption by 10% or generate renewable energy or renewable fuels to make up 10% of energy use. In terms of buying a commercial building, this would look like:<\/p>\n There is a whole new world of opportunities awaiting your business as you settle into your new space. A well located, well equipped building is within reach thanks to affordable financing and will help your business grow to its fullest capacity.<\/p>\n If you are considering applying for an SBA loan, CDCs are a vital source of capital for commercial real estate, as well as\u00a0advocacy and guidance.\u00a0TMC Financing<\/a>\u00a0is a Premier Certified Lender with the SBA, which gives them increased authority to approve, process, close and service loans quickly. Our responsive, expert staff is ready to help every step of the way.\u00a0 You can\u00a0speak to a TMC loan expert<\/a>\u00a0to find out more about the SBA 504 loan program.<\/p>\n <\/p>\n [\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":" What are some things you should be asking before purchasing property? We\u2019ll address four of the most important questions to help guide you through the process. <\/span><\/p>","protected":false},"author":19,"featured_media":6709,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[25,90,89],"tags":[],"class_list":["post-6708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-updates","category-sba","category-tmc"],"acf":{"related_posts":null},"yoast_head":"\n\n
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SBA 504 Green Energy Program<\/h4>\n
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