Commercial finance, run the numbers.

Owner-occupied commercial real estate, primarily SBA 7(a), SBA 504, and conventional. Purchases, refinances, construction, partner buyouts, and business acquisitions where the borrower owns or uses the underlying property. From $500K to $20M, nationwide, A to Z credits.

I run deals from $500K up to $20M. The volume sweet spot is $1M to $7M because that's where SBA 7(a) and 504 are most efficient. Below $500K usually doesn't justify the SBA paperwork. Above $20M I refer out to specialists.

All 50 states. The SBA is a federal program and I keep a network of lender partners across the country who can fund based on geography, property type, and borrower profile. State of the property and state of the operating business can be different.

Some deals carry a packaging fee on the borrower side, typically 1 to 2 percent of the loan amount, often financed into the loan itself. On other files my fee comes from the lender. I disclose the structure on the term sheet so there are no surprises.

A clean SBA 7(a) purchase: 45 to 60 days from term sheet. A clean SBA 504: 60 to 75 days. Conventional: 30 to 60 days depending on the bank. Environmental issues, low appraisals, or document gaps push timelines out. I move files in days, not weeks, when the client is responsive.

Yes. The SBA is built for borrowers who don't have a fifteen-year balance sheet. What I need is the operating story: experience in the industry, why this deal, and what your global cash flow picture looks like. First-time borrowers close all the time on owner-occupied SBA.

Hit the contact form on this site with the basics: borrower, property, deal size, and what you need. I respond same-day with a fit/no-fit and what I'd need to move. A back-of-napkin pitch deck is enough to start. Don't gather every document before reaching out.

Five things: borrower name and ownership, property address, purchase price or refi balance, loan amount requested, and a one-paragraph story (what's the business, why this deal). That's enough to give a same-day yes or no.

Not under SBA, since SBA is owner-occupied only. For investment deals I have conventional and DSCR-loan referral partners who do that work. Tell me about the deal and I'll point you in the right direction.

Almost certainly yes. SBA lenders are federally chartered or work through CDCs with national reach. Tell me the state and the property type and I'll confirm specific partners that fund there.

$5 million total SBA exposure per borrower. Larger deals get split into 504 structures or use a pari-passu first plus a 7(a).

Real estate acquisition or refinance, business acquisition, partner buyouts, equipment, working capital, leasehold improvements, and inventory. The 7(a) is the most flexible SBA product by a wide margin.

For owner-occupied real estate purchases: 10 percent. Of that 10 percent, at least 5 percent must come from borrower resources (cash, equity in another property, gifted funds, certain seller standby arrangements). Special-use properties like hotels or gas stations sometimes require 15 percent.

Variable, priced over the Wall Street Journal Prime Rate. Typical spread is Prime + 1.50% to 3.00%. With Prime at 6.75%, that puts most owner-occupied 7(a) deals between 8.25% and 9.75%. Rates reset quarterly.

25 years for real estate (no balloon), 10 years for business acquisitions and equipment, 7 to 10 years for working capital. Blended deals get blended amortization weighted by use of proceeds.

Variable. Tied to Prime, resets quarterly. A fixed-rate 7(a) program exists but most lenders don't actively offer it; pricing is meaningfully higher when they do.

Only on loans with terms 15 years or longer. The penalty is 5% in year 1, 3% in year 2, 1% in year 3, then zero. So most SBA 7(a) real estate deals carry that step-down structure.

Tiered by loan size. Loans of $1M or less currently have the fee waived (zero). $1M to $2M is 1.45% of the guaranteed portion. Above $2M is 1.7% of the guaranteed portion. SBA guarantees 75% of loans above $150K. Use the SBA Fees Calculator above for a quick estimate.

Yes. Working capital is an eligible use. The amount is usually capped to what underwriting can justify, typically 10 to 20% of the loan. Wrapping it in at acquisition is much cheaper than coming back later for a separate working capital line.

Yes, including cash-out refinance up to 90% LTV. The most common refis are conventional debt to fixed-rate SBA, or short-term seller carrybacks being rolled into long-term amortization. There are specific eligibility rules around recent SBA-to-SBA refis.

Absolutely. Business acquisitions are one of the most common 7(a) uses. Goodwill is eligible up to the loan limit. Stock purchases and asset purchases both qualify, with different structuring nuances.

7(a) is one variable-rate loan from one lender, max $5M total exposure. Flexible use of proceeds.

504 is a two-loan structure: bank first (50% LTV), CDC debenture second (40% LTV), borrower equity (10%). The CDC piece is fixed-rate for 20 or 25 years. Larger ticket capacity, real-estate and heavy-equipment only.

50/40/10. The bank funds 50% of project cost as a conventional first lien. The CDC (Certified Development Company) funds 40% via an SBA-guaranteed debenture as a second lien. The borrower puts down 10%. Special-use properties typically require 15% down, startups 20%.

Certified Development Company. A nonprofit licensed by the SBA to package and fund the 40% debenture piece of every 504 loan. Each metro has a CDC or two. They're the SBA's regulatory arm on the 504 side.

The bond that funds the CDC's 40% second lien on a 504 loan. Debentures are sold on the secondary market and SBA-guaranteed. The rate is set on the day of debenture funding and stays fixed for the life of the loan (20 or 25 years).

The CDC debenture portion is capped at $5M for most projects, $5.5M for manufacturers, and $5.5M for green/energy-efficient projects. With the bank piece typically at 50%, total project sizes commonly run up to $12.5M and beyond.

The CDC debenture is fixed at funding, with the 25-year effective rate recently around 5.85% (mid-5s to low-6s). The bank first is whatever conventional pricing they offer, often Prime + 1 to 2% variable or a 5/5/25 fixed-then-reset structure. Blended rate across both pieces usually lands in the mid-6s to high-7s.

When the project is real-estate dominant and over $3M, when the borrower can put real equity down (10%+), and when the borrower wants a meaningful fixed-rate component. 7(a) wins on smaller deals, when working capital matters, and when speed is more important than rate.

10% standard for existing buildings and existing businesses. 15% for special-use property (hotel, restaurant, gas station, etc.). 20% for startup businesses. 25% for startup operating a special-use property.

Yes. Ground-up construction is a primary 504 use. The bank funds construction draws, the CDC funds the takeout debenture at completion. Construction-period interest is reserved into the loan budget.

Yes, with conditions. The Debt Refinance Program allows existing commercial debt to be refinanced under 504 if certain seasoning, use of proceeds, and benefit-to-borrower tests are met. Cash-out is allowed up to 20% of project value for eligible business expenses.

The borrower's operating business occupies and uses a defined minimum percentage of the property's rentable square footage. The operating business and the real estate entity can be separate LLCs as long as common ownership exists.

For an existing building, the borrower's operating business must occupy at least 51% of the rentable square footage. Below that, the SBA route is closed. For new construction, it's 60% upon occupancy with a plan to grow to 80% within ten years.

Yes, as long as your business clears the 51% occupancy threshold. The rental income from other tenants counts toward global cash flow analysis. Many of the best owner-occupied deals are 60-70% owner-use with rental upside from the other bays.

No. SBA is owner-occupied only. If you're a landlord without an operating business in the building, you're a conventional or DSCR-loan borrower, not an SBA borrower.

You can sublease portions, but the operating business still needs to occupy and use the 51% minimum. Subleasing your owned percentage to a related party usually triggers an SBA review of beneficial ownership.

No. Almost always the real estate is held in a separate LLC (the EPC, Eligible Passive Concern) that leases back to the operating business (OC). SBA underwrites the OC and EPC together as one credit.

Yes, as long as your business will occupy the 51%+ post-renovation. SBA underwrites the future-use case. Plan documentation, construction timeline, and tenant improvement budget matter.

10% on owner-occupied real estate purchases is the most common floor. 15% for special-use property. 20% for startups. Less than 10% is possible only with seller standby structures or other creative equity.

Yes. Gifted funds count toward borrower equity injection if documented properly. The gift letter must state that the funds are a gift, not a loan, with no expectation of repayment. The gifter's funds and the borrower's receipt must both be sourced.

A signed statement from the person giving funds confirming that the money is a gift, not a loan, with no repayment expected and no claim on the property. Combined with bank statements showing the funds movement, it satisfies SBA's equity sourcing requirement.

Partially. A seller note that stays on full standby (no principal or interest payments) for the entire SBA loan term can count toward equity injection. A seller note on partial standby or with current payments does not.

An agreement where the seller's carryback note holds in a frozen position for a defined period, typically 24 months or the life of the SBA loan. Full standby means no payments at all. Partial standby allows interest-only or limited principal payments.

Generally no for the SBA-required 5% borrower-sourced piece. The borrower must show "skin in the game" from non-borrowed sources. Borrowed funds (HELOC, signature loan) typically fail the SBA equity test unless structured very carefully.

Yes, through a ROBS (Rollover for Business Startups) structure or direct distribution. ROBS is complex and requires a specialized administrator. Direct distributions trigger taxes and penalties if you're under 59½. Talk to a CPA before going this route.

Common workarounds: gift letters from family, seller carryback on standby, equity from another owned property used as collateral, HELOC on a personal residence (sometimes allowed), or a partner bringing the equity. Tell me what you have and I'll structure around it.

When you have 25%+ equity, when your business is mature with strong retained earnings, when you want a cleaner amortization without prepay penalties, or when you need to close fast and can absorb the higher down payment. Conventional also wins on investor-grade properties where SBA isn't available.

Typically 20 to 30% for owner-occupied. 30 to 35% for non-owner-occupied investment property. Mature operators with strong cash flow occasionally negotiate to 20% but 25% is the standard floor.

Most conventional commercial deals carry 20 to 25-year amortizations with 5 or 10-year rate resets ("5/25" or "10/25"). A few national lenders offer fully amortizing 25 or 30-year terms but pricing is higher.

Fixed at origination for a period (5 or 10 years typically), then reset to whatever the bank's index is at the reset date. So a "5/25" loan is fixed for 5 years, amortizes over 25, and resets at year 5 based on then-current treasuries plus a spread.

Banks fund themselves on shorter-duration deposits. Holding a 25-year fixed-rate exposure against 1-year deposits creates interest-rate risk. The reset transfers that risk back to the borrower. SBA 504 debentures don't have this problem because they're funded with matching-term bonds.

Debt Service Coverage Ratio. Net Operating Income divided by annual debt service. It tells you whether the property covers its own debt. 1.0x means break-even. SBA wants 1.20x minimum. Conventional usually wants 1.25x+.

SBA owner-occupied: 1.20x property-level minimum, 1.15x global minimum. Conventional: 1.25x property, 1.20x global is the comfort zone. Special-use property (hotel, restaurant, gas station): underwriters want 1.30x+. Investor-grade commercial: 1.20x is standard.

DSCR that incorporates all of the borrower's debt obligations, not just the subject property. Personal residence, vehicles, other businesses, other commercial debt. Lenders care about it because a borrower under stress on other debts becomes stressed on this one too.

Loan-to-Value. Loan amount divided by appraised property value. The cap depends on program: SBA owner-occupied 90%, conventional owner-occupied 75-80%, investor 65-75%.

Yes. SBA generally wants 680+ FICO. Below 660 is tough. Below 620 is usually a hard stop unless there's an explainable one-time event. Conventional commercial lenders are more flexible but most want 700+ on owner-occupied.

Generally need to be at least 5 to 7 years post-discharge for SBA eligibility, with clean credit since. There are exceptions but they require a real story (medical bankruptcy, business partner fraud, etc.) and strong current financials.

Owner-occupied real estate purchases: 2 to 5+ years operating the business. Business acquisitions: ideally industry experience plus management resume. Startups: stronger personal financials and a credible plan compensate. Lenders read tenure the way they read credit.

Yes, generally. SBA underwrites historical cash flow. Two of the last three years should show positive trailing performance. If 2023 was a bad year and 2024 turned around, we present it as a recovery story with monthly financials.

Three years of business and personal tax returns plus interim year-to-date financials. For business acquisitions, three years of seller's tax returns and financials. Newer businesses can substitute 24 months of trailing financials with a written narrative.

We document why. Pandemic recovery, single-customer concentration loss, owner medical event, supply chain disruption. Underwriting looks for a "non-recurring" explanation and trailing 12-month financials showing the business is back. One bad year doesn't kill the file. An unexplained downward trend does.

Yes. Restaurants are special-use property under SBA (15% down typical). Independent restaurants need strong cash flow trends. Multi-unit franchisees are easier to close. Equipment and leaseholds wrap in cleanly under 7(a).

Yes, and gas + c-store is one of the most-financed SBA segments. Special-use, 15% down. Environmental is the deal: Phase I is mandatory, Phase II is common, and underground storage tanks trigger extra diligence. Build 60 to 90 days of environmental review into the close.

Yes. Special-use, 15% down. Environmental is the gating issue (paint booths, lifts, underground storage). Strong recurring revenue and licensed mechanics close these files quickly. Dealerships get extra scrutiny on inventory and floor plan financing.

Yes. Special-use, 15% down for flagged, 20%+ for unflagged. SBA loves branded mid-scale hotels with operator experience. Independent boutique hotels are tougher and need stronger sponsor financials. Flag transfer and PIP reserves are part of the deal structure.

Only when the borrower actively manages the property. Self-storage with third-party management is investment property, not SBA-eligible. Owner-operated self-storage is a great SBA 504 fit at $3M to $15M project sizes.

Yes. One of the cleanest SBA categories. Practitioner-owner-operated buildings underwrite quickly, soft costs (equipment, fit-out) wrap in nicely under 7(a). 10% down on owner-occupied, sometimes 100% financing possible for credentialed first-time owners.

Yes. State licensing posture is the gating item. Lenders read inspection history closely. SBA 7(a) and 504 both fund this segment readily. Playground, fencing, and curriculum equipment all wrap in.

Yes. Boutique fitness and franchised gym operators close regularly. Membership retention data matters more than top-line. Equipment and build-out wrap in cleanly under 7(a).

Yes. Funeral homes are textbook SBA borrowers. Predictable demand, strong local moats, family-owned with succession needs. Seller standby notes are common in this segment.

Adult entertainment, marijuana-related businesses (federally illegal), gambling, religious institutions, pyramid schemes, and most political entities are SBA-ineligible. Marijuana sometimes works via state-licensed conventional lenders, but it's a separate workstream.

45 to 60 days from signed term sheet on a clean file. 30 days is achievable with motivated borrowers and clean property. 75+ days when environmental, low appraisal, or document gaps slow things down.

60 to 75 days because there are two loans (bank first + CDC debenture) and an additional packaging step. CDC debenture pool timing is monthly, so coordinating funding around that adds a few days.

It's not a formal SBA process. What lenders call "pre-qual" is an internal credit review: PFS, business financials, deal structure, property summary. The output is a term sheet showing rate, term, fees, and conditions to fund.

Term sheet: lender's written non-binding offer with proposed terms, contingent on diligence. Commitment: binding offer issued after underwriting approval, with conditions to close. A commitment is meaningfully more reliable than a term sheet but neither guarantees funding.

On variable-rate SBA 7(a), you don't lock; the rate is set at funding based on then-current Prime. On SBA 504, the CDC debenture rate is set on the day of pooling, after closing. On conventional fixed-rate, the bank locks for a fee, usually 30 to 90 days.

Wire transfers fund. Title transfers (purchase) or mortgages get recorded (refi). Bank and CDC subordination docs sign. Borrower signs SBA notes, security agreements, personal guarantees. You typically don't even need to be in person; closings happen by mail or e-sign.

Yes, by being responsive on documentation, ordering environmental and appraisal day one, and choosing lenders with internal SBLC authority (no SBA HQ review). I can usually trim 10 to 15 days off a standard 60-day close with the right setup.

A non-invasive site assessment looking for Recognized Environmental Conditions (RECs). Reviews historical use, surrounding parcels, and current site conditions. Required on every SBA real estate deal. No drilling, no sampling, just a paper-and-walkthrough review. Typically 2 to 3 weeks to deliver.

Invasive sampling (soil borings, groundwater wells, vapor testing) triggered when Phase I identifies a REC. Phase II takes 4 to 8 weeks and costs $10K to $50K depending on scope. The findings determine whether you can close, whether you need remediation, and who pays for it.

Gas stations, dry cleaners, auto repair, manufacturing with paint/solvents, agricultural sites with pesticide history, properties adjacent to former gas stations or dry cleaners. Underground storage tanks (USTs), historical or current, almost always trigger Phase II.

Open RECs with no path to closure, contamination requiring active remediation longer than the lender will wait, refusal of seller to cooperate on Phase II access, or NFA (No Further Action) letters that the regulator won't issue. Most environmental issues are workable with time and the right lender.

Phase I: 2 to 3 weeks. Phase II: another 4 to 8 weeks if triggered. Order Phase I on day one of the closing process. Don't wait for underwriting approval; the environmental can run in parallel.

The lender orders, the borrower pays. SBA requires independent appraisers from the lender's approved panel. Borrower can't choose the appraiser. Cost is typically $3K to $8K depending on property size and complexity.

3 to 5 weeks from order to delivered report. Owner-occupied commercial appraisals run on the longer side because they often combine cost approach, income approach, and sales comparison. Rush appraisals are sometimes available for an extra fee.

Options: increase your down payment to maintain LTV, renegotiate purchase price with seller, request a second appraisal (sometimes allowed), or kill the deal. The most common outcome is a price renegotiation. Sellers often accept because the same appraisal will affect any buyer.

SBA guarantee fee: see fees calculator. Title insurance: 0.4 to 0.6% of loan. Recording fees and stamps: varies by state. Survey: $2K to $5K. Environmental Phase I: $3K to $5K. Appraisal: $3K to $8K. Lender legal: $2K to $7K. Plan on 3 to 5% all-in.

Mostly yes for SBA. Soft costs and lender fees are eligible to be included in the financed amount. Down payment cannot be financed. This is a meaningful working-capital preservation move.

When the new rate beats the current rate by 100+ basis points after fees, when you need cash out for working capital or growth, when an upcoming rate reset would push payments out of range, or when you want to consolidate multiple debts into one structure with longer amortization. Use the Refinance ROI Calculator to model the breakeven.

Yes, with restrictions. Generally the new loan must produce a 10%+ payment reduction or restructure non-revolving debt with seasoning of 24+ months. Both 7(a) and 504 have specific debt refinance programs.

Yes. SBA 7(a) cash-out is allowed up to 90% LTV when proceeds are used for eligible business purposes. SBA 504 has a separate Debt Refinance Program with cash-out up to 20% of project value. Conventional cash-out usually caps at 75 to 80% LTV.

Yes, both 7(a) and 504. 504 is more common for new construction over $3M. Bank funds construction draws during the build period, then refis into the CDC debenture at completion. Construction-period interest reserves into the budget.

Yes. Renovations to an owner-occupied building are an eligible use under both 7(a) and 504. Expansion (adding square footage to an existing building) is also eligible. Tenant improvements wrap in if you're occupying the improved space.

Yes. SBA allows acquisition + improvements in one loan. The combined project cost determines the loan amount and down payment requirement. This is a clean way to fund a "buy and improve" deal in one closing.

Equipment is eligible under both 7(a) and 504. Wrap it into the acquisition financing rather than financing it separately to avoid two sets of fees and two payment streams. 7(a) amortizes equipment over 7 to 10 years; 504 over the useful life.

Any owner with 20% or more of the borrower entity must personally guarantee. Below 20% is generally not required. Limited personal guarantees can sometimes be negotiated for minority owners. Spousal guarantees may also be required.

Generally yes, if the spouse owns 5% or more of the borrower entity, or if the borrower's 20%+ ownership combined with the spouse's separate property creates joint property exposure. State community property rules drive a lot of this. Talk to the lender about your specific situation.

Possible for minority owners below 20%, or for cases where one owner contributes the equity and another contributes operations. SBA allows limited PGs but lenders vary on appetite. Worth raising at term sheet, not after.

Rarely during the loan term. After loan payoff, guarantees are released as a matter of course. Some lenders will release PGs after 5+ years of clean performance and meaningful equity buildup; ask at refinance.

Yes, on closed deals, where state licensing and SBA rules permit. Structure varies by referral type. CRE brokers usually receive a co-brokerage arrangement on the loan side or a referral payment at close. Bankers typically receive a closed-deal recognition without a transactional fee. Tell me what you do and how you want to engage and we'll structure cleanly.

Hit the contact form, choose "Referral Partner" in the Who Are You dropdown, and add the client's info in the optional fields. I respond same-day with a fit/no-fit and what I'd need to move. Keep client introductions clean: send me their contact info or do a warm intro after I confirm fit.

Yes. I stay in the financing lane. I won't pitch your client on other products, won't try to "own" the relationship, and won't cross into your area of expertise. Closed deal feedback goes through you first.

Five things: borrower name, property address, deal size, what they need (purchase/refi/construction), and a one-line story. Don't gather every document. I'll tell you within hours if the deal is a fit and what to ask the borrower for next.

Yes. I'm happy to credit the referring partner on the closing announcement, in case studies (if disclosed), and in social posts. We work out the language together before publishing.