At Rogerson Business Services, we understand the importance of making informed decisions when it comes to commercial property transactions. That’s why we offer expert advice on the differences between SBA loans for buying businesses and buying commercial real estate. To assist a buyer with an SBA loan, Scott Cisneros (916) 765-9443 with City National Bank has a team that has successfully closed my SBA loans.
When you work with us, you’ll learn about the significant differences between these types of loans, what works in today’s market as SBA loan terms and conditions are constantly changing, and typical repayment periods and interest rates. For instance, while a typical SBA loan to buy a business is repaid over ten years, an SBA loan to purchase commercial real estate typically is available to repay over 25 years.
To be a little more specific, the purchase of the real estate with the business (SBA 7a loan) would be a blended loan term of 25 years for the real estate and 10 years for the real estate. If the real estate purchase makes up at least 51% of the entire purchase, then the entire purchase can be on a 25-year term.