How do you expand a successful business and buy commercial real estate when the project exceeds the $5 Million SBA loan limit—and you want to do it with 100% financing?
In this clip, Kalen Foster breaks down a real-world scenario of a Southern California family entertainment business looking to duplicate its success in a new location. We dive deep into the SBA rules that make this possible and how to structure a winning deal.
🔑 In this video, you’ll learn:
• The 10% Rule: The critical difference between a “Change of Ownership” (which requires a 10% equity injection) and a “Business Expansion” (which can technically be done with 0% down).
• Exceeding the $5M Limit: How to use a pari-passu loan structure to fund projects that go beyond the standard SBA maximum limit.
• What Lenders Look For: Why strong historical cash flow, low debt, and proven operational success are the true keys to securing a zero-equity expansion loan.
• The Vetting Process: How top institutions evaluate high-growth projects to ensure stability and success for both the business and the bank.
If you are a business owner looking to scale, buy commercial real estate, or understand your complex financing options, this breakdown is for you!
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