Licensed Mortgage Loan Officer · NMLS #2103600 · Nationwide
SBA & Commercial Loans — Financing to Buy, Build, or Expand Your Business
If you're ready to stop leasing and own your commercial space, acquire a business, or expand operations, SBA-backed financing offers lower down payments and longer terms than conventional commercial loans. Vanessa Schlitt helps business owners nationwide structure the right deal.
What Is an SBA Loan
Government-Backed Financing for Business Owners
SBA loans are partially guaranteed by the U.S. Small Business Administration, which reduces the lender's risk and, in turn, makes it easier for business owners to access financing with lower down payments and longer repayment terms than typical commercial real estate loans. The two most common programs are the SBA 7(a) loan, a flexible option usable for real estate, business acquisition, equipment, or working capital, and the SBA 504 loan, structured specifically for major fixed assets like owner-occupied commercial real estate.
Whether you're purchasing the building your business already operates from, buying an existing business, or expanding into a new location, SBA and commercial financing can make ownership more accessible than continuing to lease or relying on conventional commercial terms.
Qualifying
What Lenders Typically Look For
- Time in business and business financial statements
- Personal and business tax returns
- A clear, eligible use of funds (real estate, acquisition, equipment, etc.)
- The business must generally occupy the majority of the property being financed
- A personal guarantee from the business owner(s)
Common Questions
SBA & Commercial Loan FAQ
What can an SBA loan be used for?
SBA loans can be used to purchase owner-occupied commercial real estate, acquire an existing business, buy equipment, refinance business debt, or fund working capital and expansion, depending on the specific SBA program.
What's the difference between an SBA 7(a) and 504 loan?
The SBA 7(a) program is the most flexible, usable for real estate, working capital, equipment, or business acquisition. The SBA 504 program is specifically structured for major fixed assets like commercial real estate and heavy equipment, typically with a lower down payment.
Do I need collateral for an SBA loan?
Often yes, though SBA loans are known for more flexible collateral requirements than conventional commercial financing since the SBA guarantees a portion of the loan for the lender.
How much down payment is typical for SBA commercial real estate financing?
SBA loans generally require a lower down payment than conventional commercial real estate loans — often in the range of 10%, though the exact amount depends on the program and the strength of the business.
Do I have to occupy the commercial property myself?
Most SBA real estate programs require the business to occupy a majority of the property. If you're looking to purchase a commercial property purely as an investment without occupying it, a DSCR-style or conventional commercial option may be a better fit.