Special-purpose real estate properties are designed with specific functions in mind, making them an ideal choice for businesses with unique requirements. These properties often feature distinctive layouts or materials, setting them apart from other options in the market. For instance, motels are a prime example of special-use properties, offering convenient short-term accommodations for travelers.
When it comes to financing special-purpose real estate, securing a loan becomes crucial. While the SBA 504 Loan Program is a well-known option for funding typical commercial real estate, such as office buildings and industrial spaces, it can also be used for financing special assets like special purpose properties. However, your lender should recognize that different businesses have diverse financing needs, which is why offering a range of loan options tailored to meet specific situations and requirements is required to best serve the client’s financial needs.
When an SBA loan isn’t an option for a client looking to finance special-purpose real estate, a commercial loan can provide a workaround. A commercial loan can mean dealing with fewer fees and enjoying greater financial flexibility. The decision to select a commercial real estate term loan instead of an SBA 504 loan is usually due to the fact that the specific loan did not meet the SBA guidelines. This could be for a variety of reasons, such as it was related to an investment property.
Both, SBA and Commercial loans, offer unique opportunities. Start-up companies may find the SBA program more fitting as it offers support that is not always available through conventional bank lending. SBA loans may allow for lower contribution requirements. Conventional loans can call for higher down payments. The percentages can vary based on individual circumstances and the criteria set forth..
When dealing with special-purpose properties, having lenders with extensive expertise in this field is invaluable. An experienced lending team well-versed in SBA and Commercial lending practices, and the intricacies of special-purpose real estate financing ensures that you receive personalized attention and guidance throughout the process, while also creating the best possible financial solution for you and your business.
Are you currently encountering a financial hurdle as it regards securing a loan from your lenders? Reach out to our expert SBA and Commercial lending team. At Integro Bank we have a growing track record of finding innovative solutions to challenging financial needs for our clients. Our experienced lending team will collaborate closely with you to analyze your business plan and financials and tailor a custom financing solution that aligns perfectly with your goals and objectives. Inquire today to connect with us about loan solutions.