SBA Financing

There is a lot of information out there regarding SBA financing. As far as what we do, we offer SBA loans that are primarily backed by commercial real

Its worthwhile to note that almost
every SBA deal we close, has been
declined by at least 5 other SBA
banks.

Closing of an SBA Loan
Howell, Michigan

SBA Mortgage Closedin 2009
Office Building, Dallas Tx

2009, New Build, Closed
SBA Bank Loan, Buford, GA

Closed SBA business loan in NY

estate. However, we often finance into these loans, equipment, goodwill and working capital debt. Our minimum loan size is $400,000 and we will not consider start up franchises at this time (Except for Doctors).

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SOLUTIONS to being declined.
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Lender List
The Most Active and
Aggressive Banks in
The Nation.
SBA Lender List

One of the main benefits of the SBA business loans is the ability to go up to 85% loan to value on refinances and 90% on purchases. No other commercial mortgage even comes close to this. For example, conventional loans are now generally capped at 65% on refinances and 70% on purchases for very clean transactions. Those loan requests with "issues" are reduced to lower loan to values or are getting no offers at all.

Besides just the published guidelines, SBA financing is MUCH MORE reliable in terms of actually funding, than conventional loans. Because of the guarantee that the government provides to the funding banks, they are that much more willing to actually lend/close. This reliability alone, coupled with the higher loan to value standards (in a declining property value market) should make SBA mortgage financing the top choice for business owners that need to get their loan closed.

SBA Mortgage Financing - Major Benefits

1. SBA loans are currently the most relaibale from of financing in the nation for small business owners. 2. 90% financing is still widely available on purchases and 85% on refinances. 3. Special use properties, such as hotels, restaurant, automotive, etc are still getting funded via the SBA programs. Conventional financing, in contrast, is all but gone for special purpose properties. 4. Rates and amortization schedules are very competitive.

SBA Financing - Reputation

Many business owners are reluctant to go the SBA route because of the tainted reputation the agency has due to the process and bureaucracy. However, most of this "brain damage" can be avoided. The key is to only work with banks and lenders that are officially approved by the SBA. If you work with a bank that does not hold the proper approvals/credentials, your loan will have to be underwritten twice. Once by the funding bank, than by the SBA... This is where the 6 months to close horror stories come from. All of our sources are officially approved by the SBA and your loan will only have to be underwritten once. 60 -75 days to close is common, when you work with the right source.

Another common objection is that SBA mortgage financing is more expensive than the comparative conventional loans - and for the most part, this one is true. The third party costs are typically 15% - 20% higher than on a conventional loan. There are additional closing items, like packaging fees and attorney review fees that you do not normally see on conventional deals.

Your desicion towards the costs, should be weighed against the benefits such as higher loan to values and viability of closing (meaning that the probability of closing an SBA business loan is easily twice as likely, in this market, than non SBA financing).

When it's serious, when you need to get your SBA financing closed, contact us. We have the expertise, experience and long standing contacts to ensure a successful closing. Make Commercial Finance Advisors, Inc a part of your team. Fill out our pre approval form now for immediate answers.

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SBA Financing

SBA Mortgage Financing - Major Benefits

SBA Financing - Reputation