SBA 7(a) Loan Program To Purchase Real Estate
The SBA 7(a) guaranteed loan program to purchase or refinance commercial real estate is comprised of one loan provided by an SBA Preferred Lending Partner which means more flexibility in determining eligibility and qualifying loan applicants.
Generally, multi-purpose properties may be financed up to 90% loan to value while special purpose properties may be financed up to 85% loan to value.
Loans are fully amortizing, with both fixed or variable rate options, three year prepayment penalty periods and no covenants which means that as long as the loan is paid as agreed there is no concern of the loan being accelerated or called.
Fees are approximately 3% of the guaranteed portion of the loan and may be financed.
The 7(a) program to purchase real estate is primarily suited for clients requiring more flexible underwriting guidelines when purchasing multi-purpose properties. This program is also preferred by prime borrowers when a bank is offering low fixed rate options.
My SBA Loan Pro
The My SBA Loan Pro Podcast is hosted by Your SBA Loan Pro, Ryan Smith. In each episode Ryan provides valuable information and best practices regarding the SBA loan program.
Each episode is approximately one minute in length and addresses topics related specifically to SBA 7(a) and 504 loan programs to purchase real estate, acquire a business or franchise and obtain working capital.
You’re encouraged to listen and subscribe to ensure you’re notified each time a new episode is available. Ryan publishes a new episode weekly on Tuesday mornings, unless he’s kidnapped to a deserted island of course.
You can listen and subscribe on your favorite platforms including Apple Podcasts, Spotify, Google Podcasts, Anchor and Stitcher.
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