Owner-User Loans
Owner-user loans are a great option for businesses looking to invest in their own commercial property.
What is an Owner-User Loan?
An owner-user loan is a commercial real estate loan where the borrower is the owner and primary occupant of the property. This means that the business using the property operates within the location and owns it, rather than renting or leasing to other tenants.
Most types of commercial real estate locations can qualify for an owner-user loan such as retail stores, office buildings, medical offices, industrial buildings, and specialty properties such as self-storage facilities, assisted living/nursing facilities, daycares, and events centers.
Types of Owner-User Loans
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Conventional Commercial Loans: Typical terms of 5-20 years.
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SBA 504 Loans: Long-term fixed-rate financing offered by the Small Business Administration. These loans typically involve a 50-40-10 structure.
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SBA 7(a) Loans: Another Small Business Administration loan option for loans greater than $500,000 that can be used to purchase real estate among other business purposes.
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USDA Business & Industry Loans: Available for rural businesses, these loans are partially guaranteed by USDA and can be used for real estate purchases or developments.
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Key Features of Owner-User Loans
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Competitive rates
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Lower down payments
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Flexible overhead requirements
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No collateral needed for some loans
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Tax advantages
