Commercial Real Estate Loan
Our professional business lenders work closely with you and your professional advisors to customize a real estate loan that fits your business needs.
- Office
- Industrial
- Retail
- Hotels / Hospitality
- Self Storage
- Special Use
Commercial Real Estate Purchases and Refinancing, Made Easy
Commercial Real Estate Financing Benefits
- Remodel or expand your growing business
- Fixed-rate loans provide stability from unexpected rent increases
- Terms of 5, 10 and 15 years and amortization up to 25 years
- Commercial properties may offer perks like tax breaks 1
SBA 504 LOANS FOR COMMERCIAL REAL ESTATE
About SBA 504 Loans
- SBA 504 loans are suitable for commercial real estate loans of $350,000 and above.
- SBA 504 conserves your working capital by requiring only a 10 percent borrower contribution. 2
- If you do not qualify for conventional financing, the SBA-backed 504 loan may be right for you.
504 Loan Eligibility
To be eligible for a 504 Loan, your business must:
- Operate as a for-profit company in the United States or its possessions
- Have a tangible net worth of less than $15 million
- Have an average net income of less than $5 million after federal income taxes for the two years preceding your application
Other general eligibility standards include falling within SBA size guidelines, having qualified management expertise, a feasible business plan, good character and the ability to repay the loan.
Loans cannot be made to businesses engaged in nonprofit, passive, or speculative activities. For additional information on eligibility criteria and loan application requirements, small businesses and lenders are encouraged to contact a Certified Development Company in their area.
HOW CAN I USE A 504 LOAN?
A 504 loan can be used for a range of assets that promote business growth and job creation. These include the purchase or construction of:
- Existing buildings or land
- New facilities
- Long-term machinery and equipment
Or the improvement or modernization of:
- Land, streets, utilities, parking lots and landscaping
- Existing facilities
A 504 loan cannot be used for:
- Working capital or inventory
- Consolidating, repaying or refinancing debt
- Speculation or investment in rental real estate
HOW DO I PAY BACK MY 504 LOAN?
Loan repayment terms vary according to several factors:
- Owner/Non-Owner Occupied Business Facilities
- Commercial Office or Retail Property
- Land Acquisition and Development Loans
- Secured Lines of Credit
- Short term construction financing
Loan repayment terms vary according to several factors:
Repayment Terms
Maturity terms available:
- 10-year
- 20-year
- 25-year
- Pegged to an increment above the current market rate for 5-year and 10-year U.S. Treasury issues
- Totals approximately 3 % of the debt, rate may be financed with the loan
- Heritage Bank does not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.
- Startup and special-purpose properties may require an additional contribution from the borrower.