Top Banks for Real Estate SBA Loans (thru 7a program)

Last update: Aug 28, 2022

 

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If you look at the occupancy rates for commercial buildings post-COVID, you’ll see they continue to climb. Many companies are bringing their employees back into the office and adding additional space they had put off until the pandemic subsided.

Additionally, there were many new businesses created during the pandemic by people that were laid off, and they are now at the point of looking for office space. And, many companies who have a lease expiring will be looking for new space, larger or smaller, in the coming years.

An SBA loan can help get your real estate business off the ground. It can be used for renting office space, buying office equipment and supplies, refinancing debt, or even purchasing a competitor’s real estate company.

 

Benefits of owning a real estate company

The biggest benefit of owning a real estate company is the independence. Many people who own a real estate company learned the business by working for one of the large national commercial real estate companies. They saw that they could earn more by being independent, calling their own shots, and doing their own deals.

The earnings for a commercial real estate professional typically range between $80,000 and $250,000 per year, and some real estate professionals make twice that or more; In addition to great pay, many real estate professionals use their companies to pay for benefits, like health, life, disability insurance, and other perks.

 

How to obtain financing to open, expand, or buy a real estate company

If you’re looking for real estate company financing, consider applying for an SBA loan. The various loan programs offered by the Small Business Administration can help provide the funding you need to set up your business.

The SBA is a government agency that doesn’t lend you the money directly. Instead, it guarantees a significant portion of your loan. That lowers the risk profile for SBA’s lending partners, which include conventional banks and financial institutions, so they’re more willing to approve loan requests.

You also must put significantly less cash or equity down to qualify with an SBA loan. And, with an SBA loan, no covenants or collateral is required.

The most common SBA real estate loans include the SBA 7(a) and Express loans.

 

SBA 7(a) loan for starting or buying a real estate company

The 7(a) is the preferred SBA loan for real estate professionals. You can use the funds made available through this program to purchase property, expand your sales force, open a new office, or even purchase a competitor’s company.

If you own an existing real estate company and want to buy out a partner, you can utilize the funds from an SBA 7(a) loan for that purpose.

The maximum SBA loan for a real estate company is $5 million. These term loans are generally repaid with monthly payments that include interest.

The payment stays the same for fixed-rate loans since the interest rate is locked in. However, for variable rate loans, it’s up to the lender to request a different payment amount if the interest rate changes.

 

SBA Express Loans for real estate companies

SBA Express Loans are a part of the agency’s 7(a) loan program. Up to $500,000 can be borrowed under an Express loan. The approval times are typically much faster for these loans.

Express loans over $25,000 have a collateral requirement. The SBA usually responds to Express loan applications within 36 hours.

The lenders ultimately make all eligibility and credit decisions. The market prime rate plus 4.5-6% interest is applied with repayment terms of up to 10 years.

 

How to apply for an SBA real estate loan

Access our network of SBA lenders that includes leading nationwide banks, credit unions, and other financial institutions. Our lending partners are experienced in handling applications for real estate companies, so they will diligently pursue your opportunity.

There are countless SBA approved lenders that are ready to offer you a real estate SBA loan. These are just some of the top lenders:

RankBankCityState# of LoansAvg Loan $Avg Interest
1Wells FargoSioux FallsSD37$973,1594.2%
2Enterprise Bank & TrustClaytonMO19$837,3585.2%
3Sunwest BankIrvineCA15$1,829,3334.8%
4Sunflower BankDenverCO13$1,348,4084.1%
5The Bancorp BankWilmingtonDE13$1,497,6385.4%
6Byline BankChicagoIL12$1,145,0006.0%
7Columbia State BankTacomaWA11$724,2454.9%
8BOKFTulsaOK9$1,630,4933.8%
9Live OakWilmingtonNC7$1,579,2865.1%
10Telhio CU IncColumbusOH7$970,2715.3%

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