Jul 23, 2022
100% Financing for Business Expansion with the SBA 7(a)
While most SBA 7(a) loans need a 5-10% down payment, certain
lenders are now offering 100% commercial property financing through
SBA 7(a) loans. This means that, if they are eligible, a borrower
can use a 7(a) loan to buy a business property without putting any
money down.
Who is eligible for SBA 7(a) Commercial Real Estate Financing at
100%?
While exact requirements vary by lender, a borrower will need the
following to obtain 100 percent CRE financing:
✅ Excellent personal and company credit ratings
✅ A substantial amount of collateral is required.
✅ 1.25x or larger debt service coverage ratio (DSCR)
✅ Cash flow has been consistent and good in the past (1.5 years
typically required)
✅ At least 51% of the property in question must be occupied by the
business.
The structure must be a general-purpose or multi-purpose structure
(properties with highly specific uses are much riskier for both
lenders and the SBA)
If you'd like to meet with Beau to talk financing, book a
call here
( http://bookwithbeau.com/ )