Go SBA for Owner-Occupied Commercial Real Estate Loans
September 27, 2024
When you become a small business owner, you have the chance to build a thriving company from the ground up and invest in your long-term future. A great way to accomplish both goals is by purchasing an owner occupied commercial property that provides space for your business, as well as the opportunity to create revenue streams from tenants.
To purchase the ideal owner occupied commercial site, you’ll need reliable lending solutions that meet your needs and financial goals.
Discover how our owner occupied commercial real estate loans through the Small Business Administration (SBA) are designed to support business owners by helping create property ownership and financial stability.
The Benefits of Owner Occupied Commercial Real Estate Loans
Renting or leasing a commercial space might be a good idea at the start of your business. However, you may have to contend with rising rent costs, strict lease restrictions, and space limitations over time. For many small businesses, it’s much better to eventually purchase a commercial site as a new base of operations and investment property.
If you plan to lease part of your owner occupied commercial real estate, your business must occupy at least 51% of the property, giving you ownership and control of the main property with the opportunity to build wealth over time. Buying and occupying your own commercial property may provide several key advantages:
- Potential for property value to build equity over time
- Avoid sudden rent increases from landlords
- Earn rental income by leasing out unused portions of property
- Strengthen cash flow
- Ability to renovate or expand as needed
- Move to a location that better suits your target market
The ability to own and occupy commercial real estate may give your business a greater chance for significant growth and long-term financial stability.
SBA Loans: The Optimal Lending Solution for Small Businesses
The SBA is a federal agency dedicated to encouraging small business growth by making financing options more accessible, especially for growing companies and established businesses.
Their primary way of supporting businesses is by partnering with banks, such as Texas Gulf Bank, to provide a Small Business Administration loan guarantee on a portion of the loan amount to eligible small business owners. This way, more businesses have the opportunity to secure loans for purchases and other business needs.
SBA loans may enable growing companies to obtain the financing needed to cover major purchases, operating expenses, or working capital needs, as well as the chance to improve overall cash flow. Taking advantage of this lending option may help you invest funds back into the business and pursue additional growth opportunities.
Secure Owner Occupied Commercial Real Estate with SBA Loans
Although the SBA offers several loan programs to support small businesses, the SBA 504 loan program is ideal if your company needs funding primarily for major fixed assets like commercial properties or heavy equipment.
SBA 504 loans give your business the flexibility to use funds for large expenses such as:
- Buying and developing land
- Road and utility improvements
- Constructing new facilities
- Acquiring existing commercial property or office buildings
- Purchasing heavy equipment or large machinery
However, SBA 504 loans may not be used to cover working capital needs or smaller expenses such as inventory. (You would instead consider an SBA 7(a) loan as a business loan to support general operating expenses.)
If your small business is interested in pursuing owner occupied commercial real estate, Texas Gulf Bank can help. We offer a range of strategic loan solutions that help secure the property you need for your company’s financial future, including SBA loans.
Texas Gulf Bank: The Ideal SBA Loan Partner
For over 110 years, Texas Gulf Bank has supported small business owners throughout the Southeast Texas Gulf Coast region by providing reliable banking services and lending programs that spur business growth. By choosing Texas Gulf Bank, you gain the benefits of our in-depth loan expertise, regional insights, and exceptional customer service for a better loan experience.
Because SBA loan applications can be complex, it’s essential to have a loan partner that understands the intricacies of SBA loans. Our dedicated SBA Loan Specialist can help you navigate the loan application from start to finish for a seamless, straightforward loan process.
Contact Texas Gulf Bank today to learn more about owner occupied commercial real estate loans and how we can craft a lending solution that aligns with your business goals and growth initiatives.
Call us at 1-800-467-7216 to speak with our SBA Loan Specialist, visit one of our local banking centers, or fill out our contact form to get more information. We look forward to helping your small business succeed!
All loans subject to credit approval