SBA Commercial Construction Loans
Commercial Construction Loans are available up to and over 150% loan to cost via the SBA loan programs for small and mid-sized businesses to build “owner occupied” commercial property from the ground up or to expand an existing building or facility.
The 7a program is available up to $5 million and higher in some cases,* and the 504 program can accomodate projects up to and over $12 million with as little as 10% down/10% equity and approx $20 million with 20% equity.**
These loans are available for acquistion of land or buildings, new construction of buildings, and in the case of the 7a, you can put up a building or build out property without the need for a seperate constructon loan.
The SBA 7a is one loan, so it is essentially a “construction to perm” loan.
The definition of “owner occupied” for ground up SBA construction loans means your small business should initially occupy 60% or more of the new space and the rest may be leased out – some of it permanenty and the rest for up to 10 years.