- September 12, 2017 at 8:09 pm #100191
I currently rent space to operate my training business but I am completely full and unable to grow in my limited area. I have been in my current location for 4 years and my gross income has totaled around $270K annually for the past 4 years. Because I pay such a premium to rent, I am missing out on much of the income and as a result my taxes reflect a profit of $45,000 annually. I have identified that I will need a loan in the neighborhood of around $1-1.2M to purchase land and build. I own my house and have $200k in equity. I am willing to sell my house and relocate if I need that money for a down payment. I also have a fiancee who is willing to help me somewhat with the downpayment. My credit score is 730, I’ve written a comprehensive business plan, and I am currently operating as a sole-proprietorship. Should I consider changing my business classification? Will that help in the loan process? Am I a candidate for a business loan and if so, which one will be best suited for what I’m trying to achieve?September 12, 2017 at 8:48 pm #100314
It sounds like you’ve got an excellent start to the process of getting a loan for your commercial real estate project. You’re a prime borrower with access to funds for a down payment, and a solid business plan with some business history. That’s what is required for an SBA loan, which is probably the loan program that will give you the most affordable rates and the longest repayment terms, helping with your goal of lowering your yearly office space cost.
You’ll need at least 10% down to get approved for a loan. You can check out the latest commercial real estate loan rates, or just check out our guide to SBA Loans to learn more. Our recommended loan provider is SmartBiz, who can get you funded for an SBA loan up to $5 million, and they do it much faster than other SBA loan providers we’ve personally worked with.
Please let me know if you have any more questions!