Eligibility Facts


Special Purpose Properties

SBA requires 15% equity injection into any project property that is considered special purpose. If the loan is the owner's second SBA loan (7a or 504) for a special purpose property then SBA requires a 20% equity injection into the project. The SBA SOPs define special purpose as "a limited-market property with a unique physical design, special construction materials, or a layout that restricts its utility to the specific use for which it was built." SBA does provide a list of properties it automatically considers special purpose, below. This list is not all inclusive but a great starting point for making the identification if a property is special purpose. Other triggers could be comments made by the appraiser in the appraisal report.
 
Special Purpose Properties Include:
Amusement parks
Car wash businesses
Cold storage facilities - more than 50% of total sq ft is equipped for refrigeration
Bowling alleys
Cemeteries
Quarries, including gravel ptis
Golf courses
Farms
Railroads
Sports arenas
Livestock & Dairy facilities
Sanitary landfills
Swimming pools
Gas stations
Service centers w/ pits and in ground lifts (oil and lube, brake or transmission center)
Tennis clubs
Hotels, motels, & lodging facilities
Hospitals, surgery centers, urgent care centers, other health / medical facilities
Theaters
Nursing homes, assisted living facilities
Dormatories
Wineries
Mines, Oil wells
Marinas
 
If you have any questions on whether your borrower's property is special purpose give one of our credit analysts a call and they can assist you in making the determination or completing a prescreen with SBA.

Karmin Garstecki
262-898-7436  
Credit Analyst     
or
262-898-7434
Credit Analyst

VetLoan Advantage

BLP offers reduced processing fees for companies that are 51% or more owned by a military Veteran. As you review your next loan prospect be sure to keep our VetLoan Advantage Program in mind.

  • Loans less than $1.5MM: 0.5% of the processing fee is waived (up to $7,500 savings)
  • Loans more than 1.5MM: 0.25% of the processing free is waived (up to $12,500 savings)

25 Year Debenture Is Here!

SBA is accpeting applications for 25 year debentures (loans approved prior to April 2nd are not eligible for the longer term).

Highlights include:

  • Third Party Loans for 25 year Debentures must have a minimum term of ten years.
  • Prepayment Premium will still only apply during the first 10 years.
  • Loans will be sold monthly with the first sale being July 2018.

SBA 504 can also accommodate 10 and 20 year debentures.

For more information, contact Thomas Van Gent at 262-898-7434 or thomas@blp504.org.


Go Green and Save Big!

Small businesses looking to grow and expand their operations through the purchase or construction of commercial real estate and “go green” can qualify for as much as $5.5 million SBA 504 financing (up to 40% of total project costs) under the Energy Public Policy Goal, offered through Business Lending Partners. There is no limit on the number of SBA 504 green projects allowed to each borrower, unlike the “regular” SBA loan whose maximum eligibility limits is $5 million per borrower and all of its affiliates including all 7 (a) and 504 loans. This means businesses that previously reached their SBA maximum limits have the ability to receive additional loans under the SBA’s Energy Public Policy Goals

Learn More

SBA 504

September 2018

25-Year Fixed Rate:

5.290%

20-Year Fixed Rate:

5.250%

10-Year Fixed Rate:

5.252%