Many banks consider financing special purpose properties risky because such properties are constructed for specific, limited uses, which means a large capital investment may be required to convert special purpose properties to a more general use.

Using an SBA 504 loan to reduce a commercial lender’s exposure to this risk can result in a better package for financing special purpose properties.

Other benefits of the SBA 504 loan for financing special purpose properties include:

• As low as 15% down keeps your cash working to grow your business
• Below-market fixed interest rates with payments fully amortized over 25 years
• No limit on the total loan amount. Projects over $25 million can still qualify.
• Finance real estate purchase, construction (including land), expansion, renovation, and equipment/furnishings
• No additional collateral required

Single-purpose, SBA-approved properties listed here