Small Business Real Estate Loan Program Information: Conventional, SBA, CRF, and USDA B&I Programs.

Real Estate Loans
for
Small Businesses

Excelsion Mortgage helps small businesses grow into larger businesses by preserving capital during expansion. Growing a business is a cash management balancing act and the less money buried in facilities means more money for other necessary functions. Excelsion Mortgage offers SBA, USDA, and Conventional business financing. Thse types of loans offer up to 90% of the purchase price of the property used for business in financing, thereby preserving precious capital. Conventional financing is the more flexible of the two, so we'll cover it first.

Conventional Business Financing

In recent years, some lenders have created SBA "look-alike" or conventional programs that have fewer restrictions than SBA-guaranteed financing (see below). For example, they allow the owner-user to occupy less space in the property than the 51% required by the SBA. Depending upon the type of property, conventional loans may allow as much as 90% loan-to-value financing, although in the current lending environment properties are limited to lower LTVs. Construction loans are also available on a conventional basis.

The Small Business Administration

The Small Business Administration is a quasi-governmental agency established to assist small business owners obtain financing for their business operations. The primary form of collateral for a SBA 504 loan is owner-user business real estate. SBA funds can be used for a variety of purposes including the acquisition of business real estate, business property, operating capital and any other legitimate business purpose.

SBA loans are typically used for single-use or single-tenant properties where the owner of the property is the owner of the business using the property. The SBA's rule of thumb is that 51% of the property must be used by the owner-operator to qualify for the agency's guarantee. In the SBA 7a program, there are often other restrictions placed upon the owner to obtain this financing such as: Annual reporting and cross-collateralization with the owner's primary residence. However, this does not usually apply in the 504 Program.

The SBA finances office buildings, retail centers, automotive centers, warehouses, light industrial (manufacturing) facilities and a host of other property types.

The USDA

The United States Department of Agriculture's Business & Industry Program offers small business owners in rural areas an opportunity to access financing through a guaranteed loan program. The USDA "guarantees" the loan to a conventional lender, thereby increasing the availability of funds to less populated areas. A rural area is defined as one with less than 50,000 people in a 25 mile radius and is based upon the most recent Census Data.

The B&I program offers small business owners real estate, equipment, and working capital financing. As a side note, it will also work with non-profit and investment properties.

The project must need between $1MM and $10MM in financing, LTV's are limited to between 70% to 80%, real estate loan programs are typically adjustable with 25 year full amortization, and the borrower must show that obtaining the loan will help to maintain or increase employment in the local area. It can also be used for construction of new facilities or rehabilitation of existing ones. Just complete the form below to see if your property is eligible.

Excelsion Mortgage can help you determine which type of financing will fit your needs the best. If you have a particular property in mind, complete the form below and we'll get back to you with options.

Small Business Real Estate Loan Information

Thank you for asking us to develop a quote for your small business
real estate refinance or purchase project. If you are developing a
property, please go to our Construction Loan Quote form. Also,
please be as thorough in answering the questions as possible
because it will really help us quote you accurately and quickly. If
you have questions about the form, please call us at ?888-578-
5441?.

Your Contact Information

*Name:
*Email:
*Phone:
Fax:

Tell Us About The Property

*Address/Location:
*Multi or Single Tenant:
*Total Building SF:
*Occupied SF:
*Land SF:
*Age of Building:
*Property Condition:
Monthly Lease Income, if any.:
Leases: NNN, FSG, or Mod.:
Monthly Expenses:
What else should we know?:

Tell Us About Your Transaction

*Purchase or Refi?:
*Estimated Value or Price:
How Much Cash Out, if any?:
Purchases: $$ Down?:
Seller Carry?:
If So, How Much?:
Closing Date?:
*Loan Amount You Want:
Pref. Amortization (yrs.):
Pref. Type (3/1, 5/1, etc.):
Estimated Hold Peroiod:
What else should we know?:
If Purchasing, Why?:

Tell Us About You, The Borrower

*Type: (Indiv., Corp, LLC):
*Guarantor's Credit Scores:
* Annual Income:
* Approx. Net. Worth:
* Approx. Liquid Funds:
*Describe Your Business:
*Years Owned:
*Years In This Business:
*Current Lease Payment:
What else should we know?:

Note: Fields with an * are required

Excelsion Mortgage is a direct lender offering commercial loans for real estate investors and small business owners (SBA 504, including construction to permanent) and other commercial investment resources. Excelsion Mortgage is a d.b.a for C. S. Higdon, Inc. and operates under California Department of Real Estate broker's license number 01425676. Excelsion Mortgage is an Equal Opportunity Lender. Privacy Policy: Excelsion Mortgage will never, ever sell, rent, trade, exchange, or barter any personal information of its clients at any time.