Anyone have experience acquiring real estate with SBA loans (after a company acquisition)

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May 14, 2026

by a searcher from University of Virginia-Darden - Darden School of Business in Bethesda, MD, USA

hi, we have a business already and are looking at a unique opportunity to acquire real estate to serve as our office space (even if we rent out some space, we'd be 75% of sq ft tenants). Our bank can do it, but i'm curious to talk to people who have done it - the hoops, "things you wish you knew", costs, timing, environmental inspection, etc. Thanks!
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Reply by a searcher
from Emory University in Atlanta, GA, USA
I’ve acquired the real estate for a business in a fast following transaction under 504. Fairly straightforward, but a bit different process from 7a. Happy to chat if you want to DM.
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Reply by a lender
from University of Southern California in Los Angeles, California, USA
@redacted‌ Congrats on being in a position to acquire the real estate. How long have you owned the business? A few things from the lending side that are worth knowing SBA 7(a) vs. 504 for OOCRE - these are two different paths and each has tradeoffs: SBA 7(a): You can finance up to $5M. If you've owned the business for 2+ years and have strong cash flow, some lenders will do 100% financing on the real estate purchase. Rate is typically Prime + spread. Rates can be variable or fixed. Different lenders specialize in different type of properties and rates can vary from Prime - 0.5% to Prime +2% depending not he lender. The rent you are paying right now can be added back since this is a rent replacement product. One loan, one closing, simpler process. SBA 504: Fixed rate on the CDC portion (typically below market), but requires 10% down minimum. Two closings - one with the bank (50%), one with the CDC (40%). Better long-term rate but more complex process. Works well if you're planning to hold the property long-term. On the 75% occupancy - SBA requires the borrower to occupy at least 51% of the space for existing buildings (60% for new construction). At 75% you're well above the threshold, so that's not an issue. A few "things you wish you knew" items: Environmental Phase I is required and takes 3-4 weeks. Budget $2,500-$4,000. If anything comes up, Phase II can add weeks and cost. Appraisal needs to be SBA-compliant and ordered through the lender. Don't get one independently first. If the property needs renovations, those can be rolled into the SBA loan. Timeline from application to close on OOCRE deals is typically###-###-#### days. Once you have a property under contract, we would love to work with you to find the best SBA lender for this deal. We recently funded a real estate deal for an awning business in California at Prime (6.75%) because the buyer had been renting the same property for 10 years. We are a free service to the borrower, since we get paid by the lender post-close. Please use this meeting link to schedule a meeting with my team: https://cal.com/team/sba/searchfunder
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