SBA 7(a) & 504 R.E. Loans

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CASE STUDY: Dr. Sarah’s Journey to Finding the Perfect Investment Property..

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Which Loan is Right for You?

SBA 7(a) vs. SBA 504: Loan Comparison

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When Should You Consider the SBA 7(a) or 504 Loan?

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Why You Should Apply for the SBA 7(a) Loan Program.

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Ready to Start the Process, to Obtain Your SBA 7(a) Loan?

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SBA 7(a) Loan Program (Application/Package) Checklist

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Why You Should Apply for the SBA 504 Loan Program.

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Ready to Start the Process, to Obtain Your SBA 504 Loan?

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SBA 504 Loan Program (Application/Package) Checklist

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Frequently Asked Questions

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Let's Zoom Meet & Discuss Your Real Estate Funding Options.

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CASE STUDY: Dr. Sarah’s Journey to Finding the Perfect Investment Property.

Dr. Sarah, a dedicated dentist with a thriving practice, had always dreamed of expanding her business portfolio. She envisioned owning a commercial real estate property that would not only serve as an additional income source but also provide a stable investment for her future. However, the complexities of finding and financing such a property, she said, seemed daunting.

One evening, after a particularly long day at the clinic, Dr. Sarah decided to take the plunge. She reached out to NextLevel Business Solutions (NLBS), which is a consulting firm that provides her dental practice with Social Media Marketing, Direct Capture Marketing, and Patient Financing; and has a deep understanding of the healthcare industry and commercial real estate financing. NLBS is the parent company to CREI Funding.

From the very first conversation, Dr. Sarah felt a sense of relief. The team at NLBS listened attentively to her goals and concerns. They understood the unique challenges she faced as a dentist and the specific requirements for a commercial real estate investment.

Together, they embarked on a journey to find the perfect property. The NLBS team provided Dr. Sarah with a curated list of income-producing commercial real estate options, each carefully selected to match her investment criteria. They explained the nuances of each property, helping her understand the potential returns and risks involved.

Once Dr. Sarah identified a promising property—a modernized medical building in a growing part of town—the next step was securing financing. The CREI Funding experts guided her through the maze of funding options, explaining the benefits of different loan structures and terms. They crafted a tailored financing plan that aligned perfectly with her financial goals and the property’s potential.

With CREI Funding, by her side, Dr. Sarah navigated the loan application process smoothly; from pre-approval to closing. Their expertise and support made the entire experience seamless, saving her time and reducing stress. The financing was approved, and Dr. Sarah successfully acquired the property.

Today, Dr. Sarah’s investment is thriving. The medical building generates a steady stream of income, contributing significantly to her financial stability. She continues to focus on her dental practice, knowing that her investment is in good hands.

Dr. Sarah’s journey with CREI Funding transformed her vision into reality. The partnership not only helped her achieve her investment goals but also provided her with the confidence to explore new R.E. Investment opportunities. With CREI Funding, she found a true funding partner dedicated to her success.

Imagine your own journey with CREI Funding. Let them turn your challenges into opportunities and guide you towards the level of success you’ve always desired. Partner with CREI Funding and experience the transformative power of expert guidance and unwavering support.

Your success story starts here.

LET'S MAKE IT HAPPEN FOR YOU , AS WELL‼️

Results may vary. All loans are subject to credit approval. Restrictions and limitations may apply. CREI Funding nor it's parent company NLBS does not provide tax, legal or investment advice. All decisions concerning these matters should be made in conjunction with your professional advisors.

Which Loan is Right for You?

SBA 7(a) vs. SBA 504: Loan Comparison

Trying to decide what type of loan is best for your business can be confusing. With all the rules, guidelines and regulations, it’s easy to get overwhelmed. But with the right information, you can confidently choose the best loan program for your specific business needs.

At CREI Funding, LLC, we are proud to offer Government-Guaranteed Small Business Administration (SBA) 7(a) and 504 loans. Use the chart below to discover the key differences between these two SBA loans and learn when you should consider each loan program.

Let us help you make the right decision, along with helping you to complete the appropriate application.

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When Should You Consider the SBA 7(a) or 504 Loan?

Please reach us at contact@creifunding.com if you cannot find an answer to your question.

When should you consider the SBA 7(a) loan?

The 7(a) loan is the SBA’s Most Popular Loan Program, for small business owners and many who would not otherwise qualify for a conventional small business loan, find that they qualify for the SBA 7(a) program.

While many people mistakenly think that this loan is only for those starting a new business, the SBA 7(a) loan is also an excellent financing tool for those who want to expand an established business, buy an existing business, buy a franchise, purchase a building that's part of the business, or finance a construction project.

When should you consider the SBA 504 loan?

Unlike the 7(a) loans, the SBA 504 loan program is more specific in terms of what and how you can use the funding. Created by the SBA to support and encourage small business growth and support economic development, the funds from this loan must be allocated toward fixed assets such as commercial real estate and equipment. These loans have low down payments and interest rates.

If you’re purchasing an existing building, expanding, or building a new construction, the SBA 504 loan allows business owners to finance construction costs, closing costs and soft costs, including architectural fees, engineering, fees, surveys, title insurance and more within the loan. Machinery, equipment, furniture, fixtures, signage, landscaping and parking lots can also be included. This allows borrowers to retain more of their working capital for other expenses.

If you’re unsure which program would be best for your business, remember that you do not need to go through this process alone. Contact an experienced SBA Loan Specialist, like NextLevel Business Solutions, to discuss your loan options.

What to Expect From Us?

As a Nationwide SBA Loan Specialist and Approved Broker, NextLevel Business Solutions has the resources and extensive experience needed to tailor solutions for your business; while guiding you down the path to greater success.

Lending decisions are driven by our team of banking professional, lending institutions, and financing organizations: who understand your business. We employ our creativity, understanding, experience, and expertise, to formulate and achieve the right and best solution for you. Based upon your expressed desired outcome.

All loans are subject to credit approval. Restrictions and limitations may apply. NextLevel Business Solutions does not provide tax, legal or investment advice. All decisions concerning these matters should be made in conjunction with your professional advisors.

Why You Should Apply for the SBA 7(a) Loan Program.

SBA 7(a) loan written on a sheet of paper, on a clip board on top of a desk, next to a pen.

SBA 7(a) Loan Program: Suitable for a Broder Range of Uses.

The SBA 7(a) loan is more flexible than the SBA 504, as it can be used for a variety of purposes, such as working capital, equipment purchase, real estate acquisition, and debt refinancing. However, it’s typically more suitable for projects that don’t involve large-scale commercial real estate acquisitions.

Key Benefits:

• Use for a Wide Range of Costs: While you can use an SBA 7(a) loan for real estate acquisition, it’s best suited for smaller-scale investments or those looking to add working capital or inventory into their Opportunity Zone projects.

• Flexible Terms: SBA 7(a) loans can be tailored for both short-term and long-term needs, typically ranging from 5 to 25 years depending on the purpose.

• Up to $5 million in financing: This program allows borrowers to access substantial amounts of capital, but SBA 7(a) loans tend to carry higher interest rates than SBA 504 loans, especially for larger amounts.

We Urge Investors to Take Advantage of "OPPORTUNITY ZONES", with a 504 Loan and its Many TAX BREAKS.

Why You Should Apply for the SBA 504 Loan Program.

SBA 504 Loan DISPLAYED ON A PAPER IN A CLIP BOARD

SBA 504 Loan Program: Best Option for Commercial Real Estate in Opportunity Zones.

The SBA 504 loan is specifically designed for the purchase, construction, or renovation of owner-occupied commercial real estate. This makes it an excellent fit for investors looking to develop or improve properties in Opportunity Zones.

Key Benefits:

• Low Down Payment: Typically, the borrower is required to contribute just 10% of the project cost, with the remaining 90% funded through the SBA 504 loan and a bank or lender.

• Long-Term, Fixed Rates: The SBA 504 loan offers fixed, long-term interest rates, making it an ideal choice for those looking to hold properties long term.

• Eligibility for Opportunity Zone Benefits: Because SBA 504 loans are used for commercial real estate acquisition and development, they can be combined with the tax advantages available for investments in Opportunity Zones, such as:

Tax Deferral on capital gains.
Capital Gains Exemption after holding for 10 years.
Low, Affordable Payments: The SBA 504’s long repayment terms (typically 20-25 years) make it more affordable by spreading out payments over a longer period.
No Balloon Payments: Unlike some traditional financing options, SBA 504 loans don’t have balloon payments at the end of the term, providing stability for investors.

Frequently Asked Questions

Please reach us at contact@creifunding.com if you cannot find an answer to your question.

>>> GENERAL SBA LOAN, FAQs

1. What is an SBA loan?

SBA loans are government-backed loans designed to help small businesses access funding with favorable terms. They include programs like the SBA 7(a) and 504 loans.

2. What types of real estate can SBA loans finance?

SBA loans can finance commercial real estate, multifamily housing, ground-up developments, and properties used for business purposes. However, they cannot be used for purely investment properties like single-family rentals.

3. What are the main SBA loan programs for real estate?

SBA 7(a) Loan: Ideal for purchasing, renovating, or constructing real estate used for business operations.
SBA 504 Loan: Designed for purchasing fixed assets like commercial real estate or equipment.

4. What are the eligibility requirements for SBA loans?

Eligibility depends on factors like business size, creditworthiness, and property use. For real estate, at least 51% of the property must be used for business purposes.

>>> SINGLE-FAMILY RENTALS, FAQs

1. Can SBA loans be used for single-family rentals?

No, SBA loans cannot finance single-family homes intended solely for rental purposes. They must be used for properties that serve business operations.

2. Are there exceptions for single-family properties?

Single-family properties may qualify if they are part of a mixed-use development or primarily serve a business purpose.

>>> RESIDENTIAL MULTIFAMILY, FAQs

1. Can SBA loans finance multifamily housing?

Yes, SBA loans can finance multifamily housing if the property is used for business purposes, such as affordable housing or mixed-use developments.

2. What is the maximum loan amount for multifamily projects?

Loan amounts vary by program, but SBA 7(a) loans can go up to $5 million, while SBA 504 loans can exceed $5.5 million for eligible projects.

>>> GROUND-UP RESIDENTIAL DEVELOPMENTS, FAQs

1. Can SBA loans be used for ground-up developments?

Yes, SBA loans can finance ground-up developments if they are for commercial or mixed-use purposes.

2. What are the requirements for ground-up projects?

Borrowers must demonstrate the project's viability, provide detailed plans, and ensure the property will be used for business purposes.

>>> COMMERCIAL DEVELOPMENT, FAQs

1. What types of commercial properties qualify for SBA loans?

SBA loans can finance office buildings, retail spaces, warehouses, and other properties used for business operations.

2. Can SBA loans be used for renovations?

Yes, SBA loans can be used to renovate or improve commercial properties.

3. What are the typical loan terms for commercial projects?

SBA loans offer terms of up to 25 years for real estate projects, with competitive interest rates.

Welcome to Our SBA 7(a) and 504 Real Estate Loan Page.

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CASE STUDY: Dr. Sarah’s Journey to Finding the Perfect Investment Property.

Which Loan is Right for You?

When Should You Consider the SBA 7(a) or 504 Loan?

Why You Should Apply for the SBA 7(a) Loan Program.

SBA 7(a) Loan Program: Suitable for a Broder Range of Uses.

Ready to Start the Process, to Obtain Your SBA 7(a) Loan?

SBA 7(a) Loan Program (Application/Package) Checklist

We Urge Investors to Take Advantage of "OPPORTUNITY ZONES", with a 504 Loan and its Many TAX BREAKS.

Why You Should Apply for the SBA 504 Loan Program.

SBA 504 Loan Program: Best Option for Commercial Real Estate in Opportunity Zones.

Ready to Start the Process, to Obtain Your SBA 504 Loan?

SBA 504 Loan Program (Application/Package) Checklist

Frequently Asked Questions

Let's Video Call & Discuss Your Real Estate Funding Options.

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