SBA Loans, and Do Real Estate Investors Qualify?

Question

Hi all, I am curious about SBA Loans. Specifically, how do Real Estate Investors, especially those starting out, would qualify for one. As a broader question: what services does the SBA provide that we can take advantage of? Thanks!

Kurt Chambliss · Answer

For SBA 504 loans, only owner-occupied buildings qualify. They are designed for small businesses so the small business that purchased the building must occupy at least 51% of the building. The remainder can be leased out. For new construction, the business must occupy at least 60% of the building.

Peter Mckernan · Answer

SBA loans are great especially for bigger deals! You can pull a lot of info off their site and are a good amount of lenders that do SBA loans too that give insight on best practices too!

Justin Winn · Answer

https://www.sba.gov/funding-pr...

There are several options for leveraging SBA loans, a 504 probably being most in line with traditional RE investing.

I would encourage you to do some searching and see if you can find a lender that does SBA loans and just talk to them about what you’re trying to do and they can guide you/educate you on what products they have.

SBA Loans, and Do Real Estate Investors Qualify?

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