Understanding SBA Construction Loan Requirements for a Multi-Phase Commercial Construction Project

If you have a commercial construction project under $5,000,000 you need to consider SBA loan products. In a recent project, we helped the owner structure equity and debt. The SBA proved to be a great source of debt capital. In this particular instance, we arranged an SBA Express loan for the 1st Phase of construction and an SBA 7a loan for the 2nd Phase of construction. The process was efficient and cost effective, with no down time between loan closings. SBA products have attractive recourse criteria and many participating local lenders.

The Synergy-RE team, very early in the project, organized the soft costs & hard costs, equity, debt, business proforma, and payment applications in such a way that we made it easy for the lender to provide a commitment letter and approve the loan request. The lesson here is make sure the paperwork is well organized and in-order for an SBA process.

Expect 6-12 months from start to funding. Once you have your corporate financials, a clear vision, and some cash reserves, you are ready to jump in.

Contact Synergy-RE to help you achieve all your commercial real estate goals.