How Do You Spell “Success” In 2018?...SBA!

17 January 2018
Comments: 0
17 January 2018, Comments: 0

Every New Year comes with not only personal resolutions but also business resolutions. It is the time of year when we all look in the mirror and make those pledges. How successful that will be depends on the individual but it is the one time of the year where most of us are able to give the focus and attention needed to make a change or firm up our resolve to build upon our prior success.

As a Business Finance Consultant we are always looking for a gateway or opening with our clients in order to be able to utilize the tools, support and knowledge that we have available. That opening just might be the Small Business Administration’s commercial real estate loan program.

While most business owners have heard of the SBA they usually associate these loans with smaller amounts or people looking for start-up capital. Most are typically unfamiliar with the fact that the SBA also offers generous terms on commercial real estate purchases, refinances and even construction financing.  By utilizing the benefits of the SBA lending parameters, you can cast a much wider net than allowed by banks or conventional loan programs. Just how wide you ask? Well just consider a few facts.

• Fact, over 90% of all businesses in the United States are considered “small businesses” based on the SBA’s criteria.
• Fact, 60% of all job growth comes from small business.
• Fact, the SBA offers loan programs for new and existing businesses in most industries.
• Fact, many businesses that have been turned down by traditional banks can still qualify for SBA loans.

How many business owners would like to own their own building? I would say almost all. Now how many of those same business owners have the 30-40% needed to put down that the bank or conventional lending program requires? Almost none. How many could come up with the 10-15% that the SBA programs require? I would say the majority could. Especially when motivated by the possibility of longer repayment terms that can make the monthly payment more affordable than they thought. That is the hot button that needs to be pushed and pushed again.

As an Affiliate of The Loan Consultants, you have access to our knowledge and expertise to help you sift through the qualifying criteria and decide which program best fits your client’s needs. Whether it be the 7A program with its $5,000,000 limit or the 504 program that can participate in scenarios more than double that amount. This is an opportunity to help your client push through to the next level and establish you as his go to source for all things financial at the same time.

This is also the perfect area for both the new and the established Affiliates to engage in because there is no special licensing required for owner occupied or owner operated real estate transactions in any state. It’s also a great opportunity for our Canadian Affiliates who may want to do some cross-border deals. This also allows those of you in the few states that do have commercial licensing requirements to be able to take advantage of the larger dollar opportunities that commercial real estate transactions offer.

Now is the time to take advantage of the opportunities presented by the SBA programs. We have great relationships with an ever-growing list of preferred lenders that can help both you and your client profit from this program. Over 68,000 SBA loans were closed in 2017 for a volume of over $30 billion. Our funding sources are offering referral fee’s of up to 3 percent and last year alone, more than $300 million was paid out industry wide. With all indications that these numbers will increase in 2018, you definitely want to get your piece of that pie!

With that said, we want to wish all of our affiliates the best in the coming year. And don’t forget…our unlimited support is only a phone call or email away on all your scenarios.


Continued Success,
The Loan Consultants, Inc.

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