Financing Programs Overview


SBA 7(a)

The primary program of interest to real estate businesses is the SBA Standard 7(a) Loan.

SBA 7(a) loans can be used for constructing or renovating buildings. With regard to buildings, any business-owned buildings are eligible. These loans can provide financing for office buildings, shopping centers, hotels, and mixed-use projects where the owner occupies more than 51% of the property. 

The 7(a) can also be used when a sale of a business is combined with a sale of commercial property and working capital is needed.

Additional uses for a 7(a) include long-term working capital, short-term working capital, purchasing equipment and acquisitions.

Max loan amount: $5 million

Max maturity: 25 years

SBA 504

SBA 504 loans help businesses grow and create jobs by offering small businesses an avenue for affordable business financing. 

Through the 504 loan program, small businesses have access to long-term, fixed-rate financing, which they can use to expand or modernize their business.

Eligible Properties: Warehouse/Industrial, Mixed Use, Retail, Medical/Healthcare, Self Storage, Hotel/Motel, Restaurants, Daycare facilities, Assisted Living,

Loan amount range: Up to $5 million or $5.5 for manufacturers and energy-efficient projects

Loan Term: 10 or 20 years

Amortization: 10 to 30 years

Maximum LTV: Up to 90% LTV. Hospitality is limited to 85%

Minimum DSCR: 1.20x

Recourse: Full recourse.

Prepayment: Prepayment penalty declines during the first 10 years to 0%.

In the intricate world of real estate financing, a critical first step is transaction analysis. At Peoples National Capital Group, we specialize in dissecting complex real estate transactions to provide you with a comprehensive understanding of the financial implications. Our team meticulously examines every detail, from property valuation to market trends and risk assessment, ensuring that you are equipped with the knowledge needed to make informed decisions.

Our transaction analysis services go beyond numbers and statistics. We delve deep into the specifics of each transaction, identifying potential pitfalls, hidden opportunities, and strategic advantages. This in-depth analysis is a cornerstone of our commitment to delivering tailored financial solutions that align with your objectives and mitigate risks.

Contact Peoples National Capital Group

Peoples National Capital Group is a commercial mortgage capital advisor here to help you enrich your life through the power of real estate, arranging financing for all types of commercial properties.

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Or you can contact us directly at (929) 593-5593 or [email protected]