| Finalizing a Small Business Administration loan (SBA | | | | must include a Small Business Administration loan. |
| loan) and refinancing an SBA loan can frequently be | | | | Typical Business Finance Misperceptions with an SBA |
| among the most difficult commercial mortgage and | | | | Loan |
| business financing circumstances for a business | | | | One of the prevailing views of an SBA loan program |
| finance or business real estate borrower. There are | | | | concerns the documentation needed to finish the |
| successful business loan strategies for both loan | | | | commercial real estate mortgage requirements. The |
| situations. | | | | key to a successful Small Business Administration loan |
| Are SBA Real Estate Mortgage Loan and Business | | | | process is trusting the loan facilitator about what is |
| Financing Programs Difficult? | | | | required. What business borrowers should try to |
| There are usually two schools of thought about | | | | realize before becoming frustrated by the loan |
| getting an SBA loan to buy a business or commercial | | | | process is that any commercial loan process will |
| real estate: (1) Avoid a Small Business Administration | | | | include substantial paperwork whether an SBA loan is |
| loan at all costs. (2) Use an SBA loan whenever | | | | involved or not. |
| possible. These conflicting viewpoints are due to a | | | | A more serious possibility for business borrowers is |
| commercial mortgage business loan process that is | | | | that they could end up with an SBA lender that is |
| perceived as complex and difficult by many | | | | rarely successful in finalizing Small Business |
| commercial borrowers. | | | | Administration loan applications. Judging the real |
| Despite the negative atmosphere surrounding the | | | | estate loan and business opportunity financing |
| SBA loan process, it can be worth the time and | | | | process by looking at the frequency of both |
| effort for many borrowers. There are critical business | | | | successful and timely outcomes for commercial |
| financing and commercial real estate loan obstacles to | | | | borrowers, the harsh reality is that there appear to |
| avoid with a Small Business Administration loan, and | | | | be far more ineffective SBA lenders than effective |
| there is only a small number of capable lenders in this | | | | Small Business Administration lenders on a nationwide |
| demanding commercial mortgage and working capital | | | | basis. |
| area. It is vital for a successful SBA loan program to | | | | Commercial Mortgage Options - SBA Loan |
| involve a real estate and business finance advisor | | | | Alternatives for Real Estate and Business |
| that is skilled at this rigorous business loan system. | | | | The practicality of refinancing a commercial loan will |
| Is SBA Loan Refinancing Possible for a Real Estate | | | | be determined by the commercial borrower decisions |
| Loan or Business Opportunity Financing? | | | | when acquiring the original real estate mortgage or |
| SBA Loan refinancing for both real estate and | | | | business financing. In obtaining a commercial loan to |
| business finance loans has usually been a very difficult | | | | buy a business, non-SBA business loan possibilities |
| proposition. New business loan programs have | | | | should be evaluated along with the option of |
| dramatically improved these Small Business | | | | obtaining a Small Business Administration loan. |
| Administration commercial mortgage refinancing | | | | A conventional business loan and real estate |
| restrictions, but the new refinancing options are not | | | | mortgage might be more feasible than many |
| widely available. | | | | borrowers realize. The possibility of refinancing either |
| Future planning for business financing can eliminate | | | | an SBA loan or conventional business financing will |
| many SBA loan refinancing difficulties. If the original | | | | ultimately be more practical and successful when |
| commercial real estate loan or business loan can be | | | | working with a skilled commercial mortgage advisor |
| finalized without including an SBA loan, future business | | | | and commercial lender. |
| refinancing will be more viable. Borrowers should | | | | Copyright 1995-2007 AEX Commercial Financing |
| determine if the initial commercial mortgage truly | | | | Group and Stephen Bush. All Rights Reserved. |