SBA Lending Allows Business Owners to Create Great Wealth; Well Beyond Their Net Revenue!
This is accomplished with the SBA 504 loan program. The SBA 504 loan allows you to easily purchase your existing business/office building (or new property) or build & expand your business with 90% SBA backed financing that includes all the closing costs, so you ONLY need to have 10% all-in!
While many businesses types, such as retail mall stores or business groups working in large downtown fancy skyscraper commercial offices, can’t avoid paying rent to their building’s landlord, 70% of U.S. businesses would benefit financially by owning their business’ principal place of business.
Obviously, if you’re currently paying a monthly rent/lease payment, you’re not building equity in that property, nor able to enjoy the benefits of any possible tax write-offs. Thus, you’re likely losing out financially today as well as not receiving the long-term equity and tax advantages.
Think about it . . . how much rent will you have paid-out over the next 10-years? For example, if your monthly rent is $2,000 /month, it’s $24,000 /year – $240,000 in 10-years. Wouldn’t it be much better for you if all those payments were paying for the mortgage on your business/office? Of course, it would wouldn’t it?
That’s a no-brainer, right? Ownership Will Always Be More Profitable Than Renting, so if possible, it just makes good-sense to do whatever it takes to position yourself to stop paying rent and start paying yourself 1st. Creating wealth for yourself is just that easy!
How many more years do you expect to be in business . . . 10/years – 20/years – 30/years? Paying-out just $2,000 /month, 10/years = $240,000, and 20/years = $480,000, and 30/years = $720,000 for your benefit.
Wouldn’t it be great to have the equity in your business property included as part of your retirement plan? And, with you knowing that once you purchase the property you’ll immediately start building equity and have much better control of your business’ long-term success, you’ll have established a solid financial foundation.
If you’re currently renting/leasing a location that’s doesn’t want to sell, or you need to relocate into a different location, BBB Commercial Financing has Commercial Realtors available to assist you in locating suitable properties.
Call BBB at (718) 915-5990. There’s NO-Cost to you for their professional services in representing you with these purchase transactions.
BBB Commercial Financing LLC in New York City offers SBA 504 and 7(a) loans for businesses nationwide, serving business owners in all 50 states. Every U.S. business that qualifies should take advantage of the SBA 504 loan program to grow their company.
Trust BBB COMMERCIAL FINANCING to provide you with . . . The “Most Effective – Least Expensive” lending programs available to best meet your unique needs in today’s challenging commercial lending market.
BBB’s Managing Director, Randall Farr, is a seasoned commercial finance consultant who for over 35 years has been providing his business expertise and banking savvy in providing structured financing solutions. Mr. Farr is an industry leader with a solid reputation as a financing expert who can be counted on for honest answers & quick results. Randall actively networks with a multitude of other legal, financial, real estate and affiliated professionals.
Questions & Answers about the SBA 504 loan program –
Q. How does an SBA 504 loan differ from a conventional loan?
A. SBA 504 loans typically only require 10 percent owner equity (down payment) with financing for up to 90 percent of all eligible costs, including soft costs and closing costs. Conversely, conventional loans offered by traditional lenders will normally only cover 75 to 80 percent of the purchase price or appraised value (whichever is less), requiring business owners to put anywhere from 20 to 25 percent down.
The interest rate on SBA 504 loans is significantly below conventional commercial mortgage rates. SBA 504 loans are structured with a first lien loan covering 50 percent of the total project costs and a second lien loan secured by a 100 percent SBA-guaranteed debenture covering 40 percent of the total project costs.
Q. What can an SBA 504 loan be used for?
A. Some of the most common uses of an SBA 504 loan include: acquisition of existing buildings; refinancing existing conventional commercial loans; acquisition of vacant land, building construction or major renovations; and/or, additions to existing buildings, and purchase of capital equipment.
Q. What are the basic eligibility requirements to qualify for an SBA 504 loan?
A. In order to qualify for an SBA 504 loan, a business must be for-profit and not publicly traded; the tangible business net worth cannot exceed $15 million; the average net income of the business cannot exceed $5 million over the previous two years; and, ownership of the business must generally be comprised of 51 percent U.S. Citizens or Legal Permanent Residents, though some exceptions apply.
Q. What are some examples or types of businesses the SBA 504 loan finances?
A. Examples of the business types that have received financing with SBA 504 financing include: medical offices or facilities; office buildings; warehouses; commercial condos; day care facilities; free-standing restaurants; limited-service flagged hotels, auto repair shops; and, assisted living facilities.
Q. How can a business owner apply for an SBA 504 loan?
A. The first step in applying for an SBA 504 loan with BBB is completing our pre-approval interview and simple application paperwork.
Q. What is the typical turnaround time to process an SBA 504 loan?
A. This is one of the biggest advantages BBB can provide over other lenders. The BBB team is comprised of specialists in SBA 504 lending that have processed thousands of SBA 504 loans for small business owners. A typical SBA 504 loan with BBB can be usually be closed in as little as 40 days.
That’s not all the SBA 504 loan program can do to grow your business. An SBA 504 loan can also refinance your existing conventional commercial loans, or provide funds for major renovations or additions to your existing buildings, and/or the purchase of new capital equipment.
Therefore, the SBA 504 loan is very versatile and can be utilized in several ways to increase your company’s monthly cash-flow, which will inevitably provide additional fresh capital for you to grow your business.
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"Avoiding The 20-Biggest (Most Costly) Business Mistakes"
How-to Get The Very Best Business Financing
One of the big keys to getting business financing is how you "package" your loan request.
"Loan Packaging" can be especially tricky for someone who doesn't have banking/finance expertise, which pretty much describes most aspiring entrepreneurs, doesn't it?
You may have great ideas about starting a new business (or running your current business), and know exactly how to perform the necessary functions involved with that business, but since your expertise in that field of work, and not in banking, you really don't know what bankers/lenders are looking for when determining whether or not to loan money to someone for their existing business or a start-up enterprise, do you?
And, that's why over 50% of all business loan requests don't make it into loan committee.
Therefore, to be successful, its important that you seek out a financing professional to help you through the tedious process of successfully securing business financing. In other words, if you want to succeed you need to have an expert "in your corner" to advise and guide you.
So, it only makes sense to find someone with a lot of real-world banking/lending experience who not only knows how to properly package your loan request, but also knows which investors specialize in lending to your line of business, thereby ensuring you get financed.
It's important for you to know that most lenders prefer lending to certain types of business, such as trucking/logistics, manufacturing, bars & restaurants, hair salons/barber shops, retail clothing stores, coffee shops, grocery & convenience stores, gas stations, hotels, etc.
So, find someone who's got it all... the lending experience, packaging expertise, and the specialized lenders to make sure you get the financing you need without any delays.
If you want to work with a well-established commercial financing company, a company which is honest & reputable, you'll want to work with BBB Commercial Financing LLC, located in New York City, providing business financing in all 50 states (except Arizona).
If you work with BBB Commercial Financing, you'll most likely be very pleased with your experience and results. That's because, you'll get to work with Mr. Randall Farr, who's the Managing Director at BBB Commercial Financing; a true business financing professional.
Mr. Farr is an industry leader with a solid reputation as a financing expert who can be counted on for honest answers & quick results. Randall has been in the banking/lending for more than 35-years, and actively networks with a multitude of other legal, financial, real estate and affiliated professionals, so he really knows how-to get your business financed.
Randall Farr is a Business / Commercial Real Estate Financing Expert who serves as the Chairman of BBB's Loan Committee. With his years of experience as a Commercial Credit Analyst and Sr. Business Underwriter Mr. Farr oversees BBB's entire lending process .
Randall reviews the underwriting and approval process of all new business loan requests and commercial real estate loan investment opportunities, having the final-say over which loans are funded through BBB Commercial Financing, so you'll definitely want to talk with him.
For more info, and to speak directly w/ Randall Farr, call BBB's office at (718) 571-9980.
Go to BBB's website to receive a FREE copy of the Best Selling Business Book, entitled:
"Avoiding The 20-Biggest (Most Costly) Business Mistakes"