Commercial Property Refinance

Improve your Debt Structure

In the case of owner-occupied commercial property, the business owner may need to improve loan terms in order to improve the debt structure and thus the cash flow supporting the business. Kirksley can help you to refinance your already owned commercial property, usually with the favorable terms included in the federally guaranteed SBS 7(a) and 504 loan programs.

Business Meeting
 

Refinancing Owner-Occupied Real Estate at your Current Business Location

Funding can be accessed to refinance  your current owner-occupied property. The most popular program is the US Small Business Administration SBA 7(a) loan program. This program has some very attractive features that you should know about:

  • loan-to-value (LTV) of up to 90% means that you may need to contribute only 10% of the refinance loan amount from your own cash/funds

  • highly competitive FIXED interest rates on terms up to 25 years for commercial real estate

  • very light pre-payment penalties in the first three years (and none after that)

  • a wide range of large loan sizes: from $100K and up to $5M

The SBA 504 program is very similar but starts at amounts where the 7(a) program ends. It is designed for larger commercial real estate refinance deals above $5M and up to $25M.


Furthermore, this kind of commercial property loan refinance can be done at a speed well ahead of traditional bank lending programs. With SBA Preferred Lending Partners (PLP), it is typical to see a proposed loan sheet within 48 hours and, upon successful underwriting, a refinance closing within 45-60 days. In contrast, a typical big bank is not highly focused on SBA refinance programs as it is just one of their many offerings and thus SBA lending is a slow process at a big bank.