Did you know? Small business financing can be used for property not owned by the small business.
Whether you’re a new small business owner or a seasoned ‘veteran’, a certified lender can help you make SBA financing work for your commercial real estate arrangement. There are many reasons for a small business to avoid real estate ownership including tax breaks, legal advantages, or the use of outside capital.
In the case of a recent client, a separate small business can be formed to purchase commercial real estate to be leased to the business. This sort of situation is made possible through the formation of an eligible passive company, which is a separate entity that mirrors the ownership of the operating company. While the U.S. Small Business Administration does allow this process to work, there are several requirements that the eligible passive company must adhere to, so make sure to meet with a lending professional to learn more.
About Bruce Hurta
Bruce Hurta is an SBA real estate loan expert, lender, and public speaker committed to helping small business owners achieve affordable financing to build and grow their business. As an SBA loan expert, Bruce helps Houston business owners finance owner-user commercial real estate with the SBA 504 loans and SBA 7(a) loans. He also works with business owners looking to buy, build or grow a business. Using the flexible terms of the SBA 7(a) loan program, Bruce can help business owners purchase an established business or franchise, finance start-up costs or fund expansion of an existing business. With 20 years of SBA loan experience, Bruce is the trusted expert in Houston small business loans and SBA financing. He was the 2013 president of the Houston Association of Government Guaranteed Lenders (HAGGL), the official trade organization for over 300 SBA lenders in the Houston 32-county SBA district, and maintains an active role in the organization today.
For SBA 7(a) or SBA 504 loan information, business finance tips and small businesses resources, contact Bruce at 281/384-2595. Meet Bruce face to face at one of his many speaking engagements across Houston, where he teaches on how to use SBA 504 loans for commercial property financing, and other small business lending topics.