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Thomas Corey
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  • Property Manager
  • San Pedro, CA (90731)
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SBA Loans, and Do Real Estate Investors Qualify?

Thomas Corey
Pro Member
  • Property Manager
  • San Pedro, CA (90731)
Posted Jul 4 2022, 07:51

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!

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Justin Winn
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  • Investor
  • El Paso, TX
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Justin Winn
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  • Investor
  • El Paso, TX
Replied Jul 4 2022, 08:09

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.

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Peter Mckernan
  • Residential Real Estate Agent
  • Irvine, CA
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Peter Mckernan
  • Residential Real Estate Agent
  • Irvine, CA
Replied Jul 4 2022, 08:36
Quote from @Thomas Corey:

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!


 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! 

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Kurt Chambliss
  • Lender
  • Oakland, CA
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Kurt Chambliss
  • Lender
  • Oakland, CA
Replied Dec 7 2022, 14:33

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.