Brokering a Great Deal on Small Business Property with SBA Financing

Business Finance
Brokering a Great Deal on Small Business Property with SBA Financing

Published: November, 2018

Commercial real estate and business brokers earn their commission by finding the best buyer for their client. Normally, this means selling the business or property at the highest price in the shortest amount of time. To achieve this (and earn a commission), the broker must use a multitude of skills and resources to ensure the deal happens and that the seller makes the most money possible.

One of the most critical resources needed by brokers to make these deals happen is favorable financing that makes the deal attractive to the small business or small business property buyer.

Since larger banks are more focused on middle-market and public companies, the small business community can often find itself underserved in terms of securing financing. Luckily, the government-guaranteed SBA loan program offers a powerful tool for the commercial real estate broker’s and business broker’s toolbox. Here’s why:

Because SBA lenders like Fidelity Bank receive a partial government guaranty as insurance against future loan defaults, SBA loans almost always have lower down payments, longer repayment terms, and easier qualifying criteria than conventional bank loans. More approved loan applications mean more closed transactions!

When a prospective buyer feels they can afford to buy a small business or small business property yet gets turned down by their bank, an SBA loan can step in to make it happen. By offering an SBA loan as an option, you help close deals that wouldn’t have happened otherwise. The buyer will surely appreciate that you came through when others didn’t and will likely become a referral source for years to come.

Beyond helping more clients close more deals, brokers can also earn up to 1%* of the loan amount on loans up to $5 million when you refer your client to an SBA lender like Fidelity Bank. So not only are you helping a client get a lower down payment, longer repayment terms, and easier qualifying criteria, you’re making more money while you’re at it.

In summary, SBA loans are good deal for brokers because:
Lower down payments, longer repayment terms, and easier qualifying criteria mean more people are eligible to secure the loan needed to make the deal happen
SBA loans are a valuable option when conventional banks turn down a client’s loan request Brokers can earn up to a 1%* referral fee on loans up to $5 million dollars for referring a client to an SBA lender like Fidelity Bank.

*Fidelity Bank Preferred Referral Partners receive referral fees of 1%, guaranteed in writing on closed SBA loan programs (SBA 7(a), SBA 504 and USDA B&I).


Information presented in the Financial Advice website is provided for educational purposes only and is not related to Ameris Bank's actual products or services. Ameris Bank makes no representations as to the accuracy, completeness or specific suitability of any information presented. Information provided should not be relied on or interpreted as accounting, financial planning, investment, legal or tax advice. Ameris Bank recommends you consult a professional for any specific guidance you are seeking.