Lease vs. Own

How to decide?

There are a number of factors to consider when deciding between leasing vs. owning:

  • Leasing: Lower upfront costs, but potentially higher long-term expenses.
  • Ownership: Start with just 10% down through the SBA 504 Program.
  • Monthly payments: Often comparable between leasing and owning.
  • Building Appreciation: Owners reap the rewards, while leasing benefits the landlord.
  • Utilize Space: Own to lease out surplus areas and reduce occupancy expenses.
  • Equity Building: Ownership translates to building retirement security.
  • Tax Advantages: Ownership offers unique tax benefits compared to leasing.

Learn More

Contact one our loan experts for a no-cost lease vs own comparison

Unified Benefits

SBA imposes no loan limits on the first mortgage or the total project size.  The SBA loan cap is $5 million, and $5.5 million for manufacturing or energy-efficient projects - there is no limit to the number of SBA loans you can take out. 

With a low 10 percent down payment, you keep your cash working in your business. And no additional collateral is required.

The remainder splits between the first mortgage (commercial lender) and the second mortgage with TMC Financing, a Certified Development Company (CDC).