SBA Financing for Owner-Occupied Commercial Real Estate
Eligible operating businesses may use certain SBA financing programs to acquire or improve commercial property used in their own business operations.
White Feather Capital LLC may help business owners identify potential SBA financing programs, organize preliminary business information, and connect them with participating SBA lenders or other authorized program participants that handle the financing transaction.
Potential Financing Purposes
Depending on the applicable SBA program and lender requirements, eligible financing may be available for purposes such as:
- Purchasing qualifying owner-occupied business property
- Acquiring land for an eligible operating business
- Constructing a new business facility
- Expanding an existing business facility
- Renovating or modernizing qualifying business property
- Purchasing eligible buildings for business operations
- Refinancing certain qualifying business debt associated with eligible real estate
- Financing eligible real estate together with other qualifying business needs where permitted by the applicable SBA program
The SBA confirms that 7(a) proceeds may be used to acquire, refinance, or improve real estate and buildings.
SBA 7(a) and SBA 504 Options
Depending on the business purpose and transaction, qualifying owner-occupied commercial property may potentially be financed through:
SBA 7(a) — which may accommodate real estate together with other eligible business purposes such as equipment, working capital, debt refinancing, or a change of ownership.
SBA 504 — which is designed primarily for qualifying major fixed assets such as land, buildings, construction, renovation, and long-term machinery and equipment. SBA 504 financing is provided through Certified Development Companies [CDCs].
Owner-Occupied Business Property
SBA real-estate financing is generally intended to support eligible operating businesses rather than passive real-estate investment.
SBA 504 financing cannot be used for speculation or investment in rental real estate, and businesses engaged in passive or speculative activities generally are not eligible.
Property use, occupancy requirements, borrower eligibility, collateral, financing structure, and other terms are determined under the applicable SBA program and participating financing provider’s requirements.
White Feather Capital’s Role
White Feather Capital LLC does not negotiate, arrange, or originate commercial mortgage loans.
Where SBA [Small Business Administration] financing involves commercial real estate collateral, White Feather Capital’s role is limited to providing general information, receiving preliminary business and property information, coordinating requested documentation, and introducing prospective borrowers to participating lenders, CDCs [Certified Development Companies], or other appropriately authorized financing providers.
For SBA 504 financing, the participating lender and CDC are responsible for structuring, underwriting, approving, and administering their respective portions of the financing. White Feather Capital LLC does not independently arrange or administer the CDC portion of an SBA 504 transaction.
Interest rates, Loan-to-Value [LTV] ratios, amortization, maturity, collateral requirements, guarantees, prepayment provisions, and other financing terms are determined by the applicable financing providers and discussed directly with the borrower as required.
White Feather Capital LLC does not provide real-estate brokerage services and does not hold itself out as a licensed commercial mortgage broker.
Important: SBA financing is subject to lender underwriting and SBA eligibility requirements. White Feather Capital LLC is not an SBA lender. See our SBA Business Financing Disclosure for additional information.