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  1. 1. Finalizing a Small Business Administration loan (SBA loan) and refinancing a small businessloan can frequently be among the most difficult commercial mortgage and business finance circumstances for a business investment borrower. There are successful business financing and commercial real estate loan strategies for both commercial loan situations.
  2. 2. There are many business finance and commercial mortgagemisunderstandings involving the use of a Small Business Administrationloan (SBA loan) to buy a business opportunity investment or commercialreal estate This article will provide an introduction to several factors thatbusiness borrowers should explore before proceeding with thisspecialized type of business loan Finalizing an SBA loan and refinancinga Small Business Administration loan are two of the most problematiccommercial mortgage and business loan scenarios for business ownersThere are practical business finance solutions for both of these commonbusiness investment problems
  3. 3. Are SBA Loan and Business Finance Programs Difficult? There areusually two schools of thought about getting a Small BusinessAdministration loan to buy a business: (1) Avoid this kind of commercialloan at all costs (2) Use this kind of loan if it is practical to do so Theseconflicting investment financing viewpoints are due to a commercialmortgage business loan process that is perceived as complex and
  4. 4. difficult by many commercial borrowers In reality SBA loan programs aremore practical than they often appear
  5. 5. It is critical to the success of a Small Business Administration loanprogram to be working with a business finance advisor and lender that isproficient at this difficult commercial mortgage and commercial loanprocess There are many potential commercial financing problems toavoid when attempting to obtain a small business loans, and very fewlenders are skilled in this business financing area Expecting BusinessInvesting and Financing Difficulties: Business Loan Refinancing One ofthe major investment drawbacks of an SBA loan has historically been thedifficulty of refinancing the Small Business Administration businessfinancing later Current options have revised the situation and it is morefeasible to arrange refinancing
  6. 6. It is still accurate to say that refinancing is not routinely available, butmore importantly it is much easier to obtain than it was in prior yearsAdvance commercial real estate loan and commercial loan planning canavoid some of the SBA loan refinancing problems First and foremost, ifthe original business financing is arranged without a small business loan,this will make later business refinancing easier than if a Small Business
  7. 7. Administration loan is involved This means that commercial borrowersshould at least consider if the initial business loan requires this form ofcommercial financing before proceeding
  8. 8. Obtaining a Small Business Administration Loan: Two CommonCommercial Loan Misunderstandings One of the most frequent criticismsof an SBA loan program is the amount of paperwork required to completethe business loan and commercial mortgage process What manycommercial borrowers fail to understand is that any business financingprocess is likely to involve substantial paperwork and formaldocumentation requirements In the end the key is working with a
  9. 9. business finance advisor that understands what is required and canfacilitate the submission procedures Beyond the paperwork concerns, amore critical and real problem is working with an SBA lender that is notvery good at successfully completing Small Business Administration loanrequirements
  10. 10. There are not many commercial lenders who are routinely effective atfinishing this complex loan process with timely and successful resultsAlternatives to SBA Loan Financing - Conventional Real EstateInvestment and Business Opportunity Loan Options Conventionalbusiness finance options should always be considered simultaneouslywith the possibility of obtaining an SBA loan As noted above, thefeasibility of refinancing a business loan or commercial real estate loan inthe future will depend heavily on the choices made by a commercialborrower when obtaining the initial commercial mortgage
  11. 11. A conventional business loan or commercial mortgage might be morefeasible than many borrowers realize Refinancing is likely to be moresuccessful if an experienced business financelender and advisor are involved Article Tags:
  12. 12.