SBA 504 & conventional commercial real estate

Financing secured by the property.

Badger Business places commercial real estate files with lenders active in the asset class. That covers conventional debt secured by investment property and SBA 504 on an owner-occupied building. The application describes the asset and the sponsor behind it. It continues in the secure application once the file is open.

  • Multifamily, retail, mixed-use, office, industrial and 2–4 family investment property
  • Acquisition, refinance, cash-out and repositions, plus SBA 504 on owner-occupied buildings
  • Sponsors with the equity in place and a property already identified
Step 1 of 5 · about 4 minutes

Start with the property

What is the transaction?

SBA 504 requires a down payment of at least 10%.

Where we reach you
  1. The property
  2. The asset
  3. The sponsor
  4. Documents
  5. Review

The asset

These are the numbers the loan is sized on.

How is the property occupied?

Investment property is financed conventionally, secured by the asset.

Give the address of the property being financed, not the registered office of the entity.

Net operating income after operating expenses, before debt service. The loan is sized off this number.

The borrowing entity

Most sponsors hold each property in its own entity. If it will be formed for this transaction, leave these blank.

Enter 0 if the entity will be formed for this transaction.

Loan amount requested Price or value, less your equity —

The sponsor

The guarantor is underwritten alongside the asset. This is your half. We already have your name and how to reach you.

Your capacity

Cash and marketable securities, before the down payment.

SBA 504 eligibility

These two questions decide whether the SBA 504 program is open on an owner-occupied building.

U.S. citizen or lawful permanent resident?
Will your business occupy at least 51% of the building?

SBA 504 requires the owner to occupy 51% of an existing building.

Ownership
Will anyone else own 20% or more of the entity?

Anyone at 20% or more personally guarantees the loan.

The property’s operating history

The asset is underwritten on what it earns. The trailing twelve and the rent roll are the two documents every file starts with.

Attach what you have. Nothing here holds up the review. The rest can go up later in your secure application.

Supporting documents

A personal financial statement, the schedule of real estate owned, leases, an appraisal, environmental reports, plans and specs for construction, and anything else already in hand. No limit on how many.

    PDF, JPG, PNG, Excel or Word, up to 100 MB per file. Title, survey and the environmental report come later in the secure application.

    Review and submit

    Check the numbers on the asset. You can go back and change anything.

    Your application is in.

    Your file is going out to the lenders now. This takes about a minute, and the offers land in your portal as they come back.

    Placed with lenders who know the asset class.

    Badger Business takes the property and its operating numbers to lenders active in commercial real estate. That means bank and agency debt on investment property, and SBA 504 where the owner occupies the building.

    Every asset class in the market

    Multifamily, retail, mixed-use, shopping centers, office, industrial, warehouses, underlying co-ops, fractured condos and 2–4 family investment property.

    A shorter path to closing

    The file goes out complete, so the first question back is about terms rather than about a missing document.

    One file, several lenders

    The same package is read by every lender on the file, which is what makes the terms that come back comparable.

    From application to funding.

    Badger Business stays on the file through the lifecycle of the loan, and the portal shows where it stands at each stage.

    1. 1

      Apply

      The property, the operating numbers and the sponsor, in one application with no fee.

    2. 2

      Size the loan

      The request is measured against the asset’s net operating income, its occupancy and the market.

    3. 3

      Documents

      The trailing twelve, the rent roll and the entity returns go up once, into one repository.

    4. 4

      Term sheet

      Rate, term, amortization and leverage come back in the portal for review.

    5. 5

      Close

      The lender closes the loan, and the file stays visible in the portal until it funds.

    A Badger Business Capital real estate application and the terms it returns

    Real estate by the numbers.

    What the programs allow, and where a commercial property request usually lands.

    SBA 504 on owner-occupied

    The 504 debenture reaches $5mm, over a 25-year term, with a down payment of at least 10%.

    More than one lender when the deal is larger

    A larger request is split across lenders rather than trimmed to fit one balance sheet.

    Markets served

    The states and metros the practice covers, and the asset classes it places most often.

    Find out what the property can carry.

    Send the asset and the operating numbers. Badger Business sizes the request, takes it to lenders active in the asset class, and returns the terms in the portal.

    Apply now Back to home
    • Up to $5mmSBA 504 debenture
    • 25 years504 repayment period
    • 10% minimumDown payment on 504

    Rather talk it through first?

    Let's connect!

    608.440.2996 info@badgerbc.com