Loan options for commercial real estate acquisition

by a searcher

Jun 08,2022

I've been presented with an opportunity to purchase a commercial property, but only the physical structures are included in the deal. The land that they are sitting on is leased for a 96 year term. Would something like this still be eligible for an SBA loan under the 7a or 504 programs?

0 likes
48 views
2 comments

lender from Clemson University

It is eligible we did an Ice skating rink at my previous bank through SBA there was a ground lease from the county for 50 years. Colin is accurate on the language have a land use attorney look at the lease agreement bc there may be language that says that the county or municipality may take possession of the land at any time and if you have that business, you are out of business.

07/09/2022 | like reply | 0 likes

lender from University of Missouri - Columbia

Adam, is it owner occupied? The likelihood is it would be eligible but there is often language in the land lease that conflicts with SBA requirements (especially true with Fed Govt land leases). If the owner of the property is amenable to possibly changing some wording on the land lease, then it should be SBA eligible.

06/21/2022 | like reply | 0 likes

More on Searchfunder

Now everyone has unlimited IBISWorld access

Sorry, but you are a broker's worst nightmare ... and how to fix it

Investor seeking consolidation deals

5 Cautionary Tips for Dealing with Friends/Family Investors

45,152 transactions are now available on Searchfunder for a limited time

CRM for the search

Why Start a Search Fund?

Unlimited IBISWorld reports on Searchfunder

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.