What Does it Take to Qualify for the SBA 504 Loan?

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Some of the primary qualifications for an SBA 504 loan is, number one, the square footage of the commercial real estate you’re going to go into. Are you going to occupy at least 51%, a simple majority? If you’re not, then you may not be a good candidate for an SBA 504 loan if it’s really you buying a commercial real estate building that you’re just going to be one of many tenants in, then it probably doesn’t make sense to do this. You may be better served by doing a conventional loan but if you’re going to have a simple … Read More

Why the SBA 504 Loan Is Better Than Commercial Loans?

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The top three reasons why people pick an SBA 504 loan from Fountainhead versus an ordinary conventional bank loan is, number one, the down payment. We’re typically half to one third the down payment that an ordinary bank would require. So when you’re talking about a million-dollar purchase, you’re probably close to $100 thousand as your down payment with us versus $200-300 thousand with a bank, so it makes a big difference for a business owner. The second reason is the amortization, the length of the loan itself. Most banks today will do a 15- or 20-year amortization. Our first … Read More

Should I Buy or Lease an Office Building?

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So, I get this question a lot: Should I buy or lease? I have often told people when they’re starting out, it’s kinda funny. Someone will hear me speak somewhere or they’ll read a quote of mine in some media publication somewhere and they’re so excited and they want to immediately buy their commercial property and yet, they’re only at the beginning of their business–maybe they’re six months into their business, whatever it is. And I’ll often tell them, sadly, it’s turning away business for me of course, but I’ll tell them it doesn’t make sense. I’m a big believer … Read More

What Is a SBA 504 Loan?

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So, what is an SBA 504 loan? I get this question a lot, as you can well imagine. It is a commercial loan product that is typically 90% loan-to-cost financing. OK, what I mean by 90% loan-to-cost financing is, we take the purchase price of the property, plus any soft cost, plus, if there’s gonna be any renovations. Whatever that is, put it together. We’ll finance 90% of it as opposed to what is more prevalent in the marketplace, which is ordinary conventional bank financing or credit union financing, which is typically going to be 75 to 80 percent loan-to-value … Read More

What Types of Businesses Has the SBA 504 Loan Helped?

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We’ve financed a lot of different businesses with the SBA 504 Loan. We have financed a lot of multipurpose properties, things like free-standing office buildings, industrial warehouses, commercial condos–we’ve done a lot a lot of commercial condos. We do a lot of special-purpose properties, like hotels. We’ll do freestanding franchise restaurants, daycares–a variety of different things. It really spans the spectrum of small businesses. We do a fair amount of physicians, buying their medical office buildings. We finance manufacturers, buying industrial warehouses or manufacturing plants. We finance distributors regularly with a warehouse. A lot of e-commerce, actually; people who need … Read More

Who Is the Best Candidate for the SBA 504 Loan?

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The best candidate for the SBA 504 loan is a for-profit, privately held business. It’s really a product meant for business owners to create wealth for themselves through the ownership of commercial real estate. You can also finance heavy equipment through the SBA 504 loan. People who have less than $15 million of tangible business net worth are also eligible for SBA 504 loans if their businesses are for-profit and privately held. If it’s a business that has averaged less than $5 million a year for the preceding two years of their net income, then they’re an eligible candidate for … Read More

Chris Hurn Awarded Coleman’s SBA 504 Lender of the Year

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Congratulations to our CEO and Founder, Chris Hurn, on being named one of Coleman Report’s 2017 SBA 504 Lenders of the Year! He is one of five recipients to receive the honor. Chris and his executive team have collectively funded more than $26 billion in SBA 504 projects over the past 20 years, making Fountainhead Commercial Capital one of the most experienced in SBA lending. He provides financing programs to entrepreneurs that give them an advantage over their corporate competition, exponentially increasing the velocity of growth with lower rates, longer terms, and swift approvals. Chris has been named SBA Financial … Read More

Why Every Small Business Owner Should Watch “The Founder”

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One of my first jobs growing up was at McDonald’s. I worked behind the counter, the drive-thru, even the grill, and had a chance to learn so much about how to run a business, what goes into a quality product, and how to take care of customers. I also got a behind-the-curtain view of one of McDonald’s secret weapons: it’s systems. McDonald’s was a pioneer in creating consistency across its platform. A french fry in San Bernardino, California tasted exactly the same as it did in Syracuse, New York. This approach to regimented systems and procedures is explored in Michael … Read More

The SBA 504 Loan: Fighting Fears of Office Ownership for Small Businesses

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For many small business owners, the words “real estate” can elicit everything from anxiety to utter dread. Like a bitter pill, some entrepreneurs tend to squirm at the thought of owning the plot of land on which their business resides, assuming the worst about costs and the headaches that come with upkeep. Sure, who would NOT like to own their office or business space? But that’s a conversation for another day – putting the topic off like those pesky taxes or the diet you promised to commit to in the new year. The good news is: there is an answer … Read More