Lease vs. Own

How to decide?

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

  • Leasing has a lower up front cost, but can cost significantly more over time.
  • You can own for as little as 10% down with the SBA 504 program.
  • Often, monthly payments for leasing vs. owning are quite similar.
  • With owning, you benefit from the building’s appreciation; with leasing, your landlord gets the benefits.
  • Owning your building can give you the opportunity to lease any unused space, lowering your occupancy costs.
  • The equity you build from owning your building can provide a comfortable retirement.
  • Owning your building has tax advantages that leasing doesn’t.

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

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).