Types of Businesses Eligible for an SBA 504 Construction Loan

1 year ago
15

Types of Businesses Eligible for an SBA 504 Construction Loan

An SBA 504 construction loan is available for businesses that are owner-occupied and meet the eligibility criteria for property and business types.

Some industries, such as real estate development and gambling entities, are not eligible. Eligible businesses range from athletic facilities to warehouses.

The occupancy requirement for new construction is at least 60%, while for existing buildings, it is at least 51%. The SBA also recommends occupying 80% within the first 10 years. However, it is unclear how this is tracked.

Beau Eckstein, who has over 20 years of experience in the lending industry, offers to explain the SBA loan process, including 7A and 504 financing options. He also offers to help businesses with questions on other types of financing.

Are you a real estate investor or business owner looking to expand? Book a discovery call with Beau to learn all the ways he can help you - https://investorfinancingpodcast.com/rumble

Timestamps:
(00:07) SBA 504 construction loans are available for owner-occupied businesses.
(00:15) Eligible property types and business types are determined by the SBA, and certain industries may be ineligible, such as real estate development and gambling entities.
(00:29) The eligible types of businesses can range from athletic facilities to warehouses.
(00:35) For new construction, the business must occupy 60% of the property, and for existing buildings, they must occupy 51%.
(00:54) The rule states that the business should occupy 80% of the property within the first 10 years, although it is unclear how this is tracked.

If you'd like to ask me a question about real estate, do it here -- https://investorfinancingpodcast.com/ask

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#SBA #SBA504 #SBAconstructionloan

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance all your projects.

About the Channel: Want to structure your investments in the right and secure way?

Learn great insights and make the right decisions through the Investor Financing Podcast hosted by Beau Eckstein.

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