Owner Occupied and Investor Properties

Owner Occupied/User transactions involve a small or mid-sized business that will occupy the majority (≥ 51%) of the commercial property for their business use.

Investor transactions are those which either do not involve an owner-user or where the owner-user will only occupy a small portion of the building.  

Commercial Property Types

Multi-Use - A Commercial building that may easily be used by a wide variety of tenants. (Retail, Office, Office/Warehouse, Light Industrial, Warehouse/Distribution)

Special-Use - Commonly associated with properties that are either designed for a particular type of tenant, or are modified for use by a particular type of tenant. (Restaurant, Car Wash, Auto Repair, etc.)

Multi-Family - Multi-family or apartment building (minimum of 5 units required)

SBA Loans up to 90% LTV

Small Business Administration-backed loans provide small business owners with more financing opportunities through higher leverage, flexible underwriting and lower down payment requirements. Property must be an Owner-User property to qualify.

SBA 7a loans serve as the SBA’s primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels. It is also the agency’s most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes.

SBA 7a provides up to 90% financing in one loan. Rate is a variable rate tied to the prime rate. Loan proceeds can be used for most sound business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets.

SBA 504 loans provide long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization. Capital Development provides a first mortgage for 50% of project costs and the SBA provides a second mortgage for 30-40% of project costs. There is a lag time between the closing of the SBA loan and the bond sales used to fund the SBA portion that typically ranges from 45 to 90 days. Due to this lag time, interim financing is provided by Capital Development to meet the client’s contract deadlines.

Want to learn more about SBA? Read An Introduction to Small Business Administration Loans

Construction-to-Perm Loans

Capital Development is pleased to offer construction-to-perm loans. Multi-use properties and some special-use properties are eligible for this program.  Our most popular program requires only a single close to go from groundbreaking to occupancy.

The transaction involves a draw account of at least $200,000 for the construction or renovation of a property. At the end of the construction period, the loan will convert to a permanent term.