You may already know that SBA loans provide many distinct financial benefits for small businesses. One substantial SBA loan advantage is the ability to ease the overwhelming and expensive process of purchasing commercial real estate. Buying commercial property can be the biggest sound investment and the biggest cost.
The same can be true for commercial real estate developers who build all the infrastructure on the land such as utilities, landscaping, streets, and signage, and then sell the plot of land to a small business owner for a profit. Often times, the developer will contract to build the actual building on the plot of land. This allows the developer to take advantage of small business lending.
What is the Primary SBA Loan Advantage to a Commercial Real Estate Developer?
The amount of debt that a developer has constricts the amount of projects he can handle. Developers can minimize their personal costs for constructing the building by placing that leverage on the buyer using SBA lending. This helps offset the costs for everyone and helps get the entire project completed.