SBA Loan 25-Year Adjustable
Property Type: Restaurant / Bar

Loan Type: Long-Term Loan / SBA

: Purchase

Property Use:

Term: 25-Year Adjustable

Rate Type: Adjustable

Doc Type: Full Doc – Tax Returns Required


Loan Maturity: 25-Years

Maximum LTV: 90.000%

Min Credit Score: 650

Recourse: Recourse & Non-Recourse
Maximum LTC:  | Maximum ARV: 
SBA Loans are structured and financed through the SBA 7a program. The loans are designed for commercial and hotel properties where the business owner occupies 51% or more of the property for business operations. Owner-users can finance up to 90% of the property purchase price or market value when refinancing. SBA loans are 25-year term adjustable loans and can be used for long-term permanent financing, construction, and rehab projects. Rates are 2% to 4% above the Federal Prime Rate. Fixed rates are available on a case-by-case basis.
Ownership: Properties must be held in an LLC, partnership, trust, or other corporate structure. In most cases, properties cannot be held in an individual’s name, solely or jointly. Unless non-recourse, borrowers are personally responsible for property and mortgage performance.

Underwriting: Asset-based and business underwriting with emphysis on property value, property and business net operating income, and potential NOI. Personal and business tax returns are required. Year-to-date and previous year property and business operating statements, rent roll, and schedule of real estate owned required.

Reserves: 6-9 months operating reserves required in addition to the down payment, if a purchase.

Loan Origination Fee: 1%

Loan Processing Fee:
Loans $250k to $500k = $975 | $500k+ $2,500

Underwriting & Appraisal Estimate: 
0.25% to 0.5% of loan amount