SBA Rates Amazing – even amid a pandemic!

Business woman hands holding white card sign with business loan text message isolated on grey wall office background. Retro instagram style imageEven amid a pandemic, SBA rates are amazing! According to a new marketing piece issued by our friends over at SPEDCO, “SBA 504 rates remain extremely low.” 

We would recommend to any business owner looking for financing options for their business to review the options available through the U.S. Small Business Administration (SBA). Financing is available for the purchase of equipment, land, or buildings, and refinance options also exist. 

As of the date of this posting, SBA504 rates for loans funding in December, 2020, remain very low:

  • 25-year term – 2.471%*
  • 20-year term  2.427%*

The team at APPRO and CERRON, your “go-to” design-build and commercial real estate professionals, are here to help in any way, as you consider your commercial or industrial space options for 2021. Now is a great time to get your next project teed up!

We are always just a click or a call (952.469.2171 or 952.469.9444) away!

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*As quoted by SPEDCO. APPRO and CERRON are not lenders; it is recommended that you seek counsel from a professional lender, tax and/or accounting professional when considering your financing options. 

Great Commercial Lending Rates = Great time to buy or build

Great commercial lending rates may be on your radar…or not!? Did you know that not only have residential lending rates dropped, but commercial rates have dropped as well. If you have been on the fence about purchasing or building a commercial or industrial building, these rates may be just the reason to move forward!

A little background about small business lending…

The Minnesota Department of Employment and Economic Development (DEED) provides some really great resources to help small business owners understand their options for lending. The primary resource may be found at the “Business Finance Guidance” page of their website. Here, you will find an explanation of grants, loans and SBA lending programs. 

Regarding SBA lending, it is important to note that when applying for an SBA – 504 loan, you do so in coordination with your primary lender. According to DEED, “Also known as the 504 Loan Program, the Certified Development Company loan program makes joint federal and private-sector financing available to small businesses. The purpose of the program is to stimulate growth and expansion of small businesses within cities, regions and states having an SBA-approved Certified Development Company, thereby creating more jobs, increasing the local tax base, and expanding business ownership opportunities. This program provides long-term fixed-asset financing for small businesses. This type of loan is made by a Certified Development Company (CDC) in conjunction with a second loan from a commercial lender in order to meet a majority of the total financing requirements of a specific project.”

Additionally, you may find SBA lending information & rates pertaining to SBA 504 loans (Certified Development Co. loans) at any one of the following providers:

There are several CDCs in Minnesota, including:

Disclaimer: Please note that neither Appro nor Cerron is a licensed lender and as with all financing information, you should discuss decisions with your accounting / tax / legal professionals for advice for your unique business needs. 

We are, however, experts in commercial and industrial property solutions as it relates to commercial real estate, design, and/or construction. Our team would be honored to help answer any questions you may have about finding an ideal solution for your unique business.

Feel free to reach out to our team any time by visiting our “Contact Us” page on our website, clicking the button below, or completing the form on this page.

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Thank you!

 

Financing Commercial Real Estate

Financing Commercial Real Estate?

Good news is just out from the National Association of Realtors in a recent article, “Lenders Return to Commercial” by Lawrence Yun, written for the nation’s largest association for real estate professionals (NAR) publication, REALTORmag. 

According to Yun, “The improving economy and an improved lending environment are the primary reasons for the gains. But it is the second factor—lending—that is making the biggest difference. In our latest survey of commercial practitioners, 42 percent said they’re seeing credit easing.”

Yet, there are still hurdles to overcome, states Yun, including the requirement to put at least 30 percent down on commercial real estate purchases. The reason for these tight restrictions, according to Yun, is that the majority of commercial transactions are under $1 million and are most often funded by small community banks. Without the backing of federal programs like FHA, Fannie Mae, and Freddie Mac, as in residential lending, commercial lenders have reason to be additionally cautious.

At CERRON Commercial Properties, we are indeed seeing an increase in commercial transactions, due in part to the community banks lessening some of their requirements. If you are considering purchasing a commercial real estate property and need to choose a lender, our team recommends you review our “How to Choose a Commercial Lender” checklist, as you make this important decision.

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Related Links:

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Commercial Real Estate Lending – 2014 Outlook

Commercial Real Estate Lending – What the Experts have to say about the 2014 Outlook

Commercial lending review by Jack Matasosky

According to a recent article by the ABA Banking Journal, Commercial Real Estate is coming back! The article caught our attention because commercial lending’s strict standards have had a direct impact on our business. We can go through all the necessary steps to assist our clients with a new purchase or the construction of a new building, but it is the hoops our clients are required to jump through we have found to be a major stumbling block to the process of securing an ideal property solution.

According to Steve Cocheo, in his ABA Banking Journal article, “CRE’s Coming Back”, “Amid indications that commercial real estate credit activity has been picking up again at the nation’s banks, an inter-industry survey reports a strong preference for commercial banks as a source of CRE credit.”

Cocheo further cites a Deloitte Center for Financial Services report, “2014 Commercial Real Estate Outlook: Trimming the sails for growth; business transformation is key,” in which the firm stated:, “Bank lenders are easing their standards, leading to increased CRE lending volumes and a rebound in commercial mortgage-backed securities issuance. Transaction activity and pricing are healthy for prime properties.”

We consider this good news in the commercial real estate lending arena and are optimistic for 2014 to be the year we start to see the pendulum swing in the other direction regarding lending standards.

You may read the full article at the ABA Banking Journal HERE.

As you consider your commercial property needs, contact our expert team at APPRO and CERRON to provide you with the most up to date trends in commercial real estate or commercial construction.