The SBA 504 loan provides small businesses that will be owner-occupiers access to the same type of long-term, fixed-rate financing enjoyed by larger firms. Read more about self-storage facility financing. This gave self-storage operators the opportunity to take advantage of the SBA 504 loan’s many benefits. In 2010, the SBA deemed some businesses with rental income – also called passive income – eligible for its programs. A multifamily property is not eligible for owner-occupied financing, but mixed-use buildings and hotels do qualify. Special-use properties such as self-storage, assisted living facilities/skilled nursing facilities and other healthcare properties, day care, sports facilities, and event centers also qualify. Our Conventional loans allow occupancy of the borrower’s business to be as little as 30% of the total square footage of the commercial property.Īsset types that qualify for owner-occupied financing include industrial buildings, flex, retail, office properties, and professional medical offices. Liberty SBF’s Conventional loan is a great alternative. In this case, the borrower is eligible for a US government-backed SBA 504 loan that gives you access to better financing than any other option.īut what happens if you still need a loan but do not expect to occupy more than half of the available square footage of the commercial property A business that has the same ownership as a holding company that owns the property is also considered owner-occupied. In addition, the owner must occupy more than half-51% or more-of the building’s leasable space for the purposes of running their own business. An owner will build equity with every mortgage payment and asset appreciation increases value in the property over time.īut, just running a business out of a property does not automatically make it eligible for SBA 504 financing from Liberty SBF. The financial upsides of owning versus renting are many. The concept of owner-occupied commercial real estate – also known as owner-user commercial real estate – is key to understanding lending options to finance a new property for a business.
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