Conventional Commercial Loans for Owner-Users
With a strong emphasis on creative financing solutions, the real estate specialists at Regents work with the demands of owner-users providing competitive rates and terms to meet your needs for commercial real estate financing.
SBA 504 Loans
Regents Bank participates in the Small Business Administrations’ 504 Loan Program. As a premier SBA 504 lender, we have the expertise to structure deals at competitive pricing for a full range of owner-occupied properties.
Business owners wishing to purchase real estate for their company’s operations have an invaluable resource in the SBA 504 loan program. 504 loans are available to businesses in order to purchase or renovate existing buildings or to purchase land and construct a building from the ground up. The applicant is only required to put 10 percent down on the purchase of the property he or she wants to acquire for the business. The financial institution provides 50 percent of the loan funding, while the SBA provides 40 percent through our partnerships with non-profit Certified Development Companies.
In providing a 504 loan, Regents Bank works with your local Certified Development Corporation (CDC). Regents Bank approves its portion of the financing request, and the CDC works with the SBA to approve the SBA portion of the request. Since the SBA portion of the financing request is a debenture that must be arranged with the financial markets, the SBA funds are often not available until after the asset has been purchased. In order to fill this gap in the SBA financing, Regents Bank provides interim financing for the SBA debenture amount so that your purchase transaction is not delayed.
Ideal For: Business owners who want a long-term fixed rate or adjustable
rate loan to purchase, expand or construct owner-occupied real
estate or purchase major, long-term (i.e. 10 year or longer usage
projection) equipment. Businesses must meet SBA guidelines. Backed by the SBA, the 504 loan generally is funded from
three sources: Bank, the SBA and equity from the
Credit Amount: Term Loans from $150,000 to $8,000,000.
Terms: Bank Loan: Up to 25 years (amortization) on Real Estate;
Up to 10 years (amortization) on Machinery or Equipment.
SBA Loan: 10 to 20 years fully amortizing.
Interest Rates: Bank Loan: Fixed or variable — negotiated rate between
Borrower and Bank.
SBA Loan: Below market fixed interest payment; loan rate set
when debenture is sold.
Collateral: Assets being financed.
Bank holds First Mortgage on real estate
or First Secured Interest in equipment and machinery.
SBAholds Second Mortgage on real estate or a
Second Secured Interest in equipment or machinery.
Fees: Generally 1.5% of first trust deed plus normal closing costs.
SBA debenture has additional fees that are financed in the loan.
Requirements: Personal guaranties by all owners of 20% or more.
Adequate business collateral,
or personal assets securing personal guaranty
(e.g. mortgage on a home).
Financing: 50% financed by Regents Bank.
40% SBA Loan through Certified Development Company.
10% Borrower Equity injection.
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