Seeking a Business Renovation Loan? Try the SBA

November 13, 2023

Have you acquired a business and want to renovate the space? Is your current commercial building outdated and in need of repair? Choosing to renovate a business property might be an easy decision, but finding a way to pay for repairs and upgrades may be a challenge.

Thankfully, your company can secure the funding needed to renovate your business property with the help of a business renovation loan. SBA 504 and SBA 7(a) loan programs from the Small Business Administration (SBA) are great lending options for companies that need renovation funding without draining cash reserves.

Discover the different features of SBA loans, loan eligibility requirements, and how Texas Gulf Bank is the perfect lending partner to guide you through the SBA process for business renovation loans.

Why Choose SBA Loans?

The Small Business Administration is a federal agency dedicated to supporting small business owners by providing access to business resources and financing options that are designed to help them flourish. These options include business loans that offer a variety of terms.

For example, SBA 504 and 7(a) loans may be excellent options for businesses needing renovation financing. These loans may provide the funding needed to transform your commercial space into a thriving business that can make a lasting good impression on your customers.

SBA loans are a popular choice for businesses needing funding because of their flexibility and availability for established businesses. If you need financing for renovation projects, commercial real estate purchases, or business upgrades, SBA loans are a great option to consider.

Transform Your Space with SBA 504 Loans

SBA 504 loans are an ideal choice for companies that need extensive renovations or want to modernize their owner-occupied commercial property but prefer to preserve their cash and pay for it over a long term.

An SBA 504 loan is a financing partnership between an SBA-approved Certified Development Company (CDC), a lending bank, and the borrower. To qualify, businesses must operate as a for-profit entity, meet specific net worth and income limits, and verify that the property being renovated is at least 51% owner-occupied.

Eligible companies that receive a loan can use the proceeds for a variety of purposes, including:

Real estate purchases
New building construction
Facility upgrades or renovations
Large-scale equipment purchases
Landscape improvements
Protecting historic commercial property
Buying an existing business

Funds are released in set amounts (draws) when the project hits specific milestones on the construction or renovation timeline.

SBA 7(a) Loans: Flexible Renovation Funding

Small businesses may also consider choosing SBA 7(a) loans for commercial renovation needs. This lending option can be a strategic resource for renovation projects and other improvements to your business space.

SBA 7(a) loans can be used for a variety of purposes, including:

Building construction or purchase
Equipment acquisition
Landscaping and facility upgrades
Converting unused space into rental property
Operating expenses
Debt consolidation

SBA 504 and 7(a) Loans: Flexible Renovation Funding

To qualify for either an SBA 504 or SBA 7(a) loan, your business will need to meet the following criteria including but not limited to:

Maintaining an eligible small business status as defined by SBA guidelines
Exhibiting good personal and business credit based on Texas Gulf Bank and SBA guidelines
Providing a minimum of 10% down payment for the project
Ensuring that at least 51% of the property being renovated is owner-occupied

SBA 504 and 7(a) loans are a versatile lending solution that can help you transform your business property into a more efficient, appealing commercial space that gives you room to grow.

Contact Texas Gulf Bank About a Business Renovation Loan

As a community-based local bank, Texas Gulf Bank partners with small businesses across the Southeast Texas Gulf Coast region to provide reliable and strategic funding solutions, including SBA loans.

With over 110 years of banking experience, we have in-depth knowledge of the regional market and will guide you as you renovate and improve your business property. When partnering with Texas Gulf Bank for your SBA loan needs, you can expect to receive:

Professional and personal attention
Access to our skilled SBA Loan Specialist
Competitive loan terms
Creative lending solutions
Prompt decisions after completing the loan application process

If you are interested in a business renovation loan and are ready to apply for SBA funding, contact Texas Gulf Bank today.

We can be reached at 1-800-467-7216, via email at sbaloans@texasgulfbank.com, or by visiting one of our many local banking centers. Our local lenders look forward to supporting your business renovations and growth opportunities.

All loans subject to credit approval