Finance the deal before you make the offer.
Commercial, SBA 7(a) and SBA 504 loans for investors, owner-users and business buyers, arranged through our network of 20+ lenders. Because we're also your broker, the property and the loan are structured together from day one.
Loans we help arrange
SBA 504
Buy or build the building your business occupies with as little as 10% down and a long-term fixed rate on the CDC portion.
SBA 7(a)
Real estate, business acquisition, equipment and working capital, combined in one flexible loan.
Commercial purchase
Retail centers, NNN, industrial and warehouse, mixed-use and multifamily (5+ units) for investors.
DSCR investor loans
Qualify mainly on the property's income rather than your personal tax returns.
Refinance & cash-out
Lower your payment, replace a maturing loan or pull equity for your next acquisition.
Bridge financing
Short-term loans for value-add, lease-up or a quick close, with a plan to refinance.
Gas station & auto
Special-use properties need lenders who understand them, often through SBA. We know this niche well.
Business acquisition
Buy an existing business with or without the real estate, typically with SBA 7(a).
Residential & Non-QM
Home loans, investor 1–4 unit and no-tax-return loans through SI MTG.
SBA loans for owner-users
If your business will occupy the property, an SBA loan is often the lowest-down-payment way to own your building instead of paying rent. Generally your business must occupy at least 51% of an existing building (60% for new construction); the rest can be leased out.
SBA 504
- Structure: about 50% bank first loan, 40% CDC/SBA second loan, 10% down
- Down payment: often 10% (15% for start-ups or special-purpose property, 20% if both)
- Rate: long-term fixed rate on the CDC portion
- Term: CDC portion up to 25 years
- Use: buy, build or improve owner-occupied property; major equipment
- Size: SBA portion generally up to $5 million (higher for some manufacturing and energy projects)
SBA 7(a)
- Structure: one loan from an SBA lender, partially guaranteed by the SBA
- Down payment: often 10% or more
- Rate: usually variable, based on Prime
- Term: up to 25 years for real estate; 10 years for business acquisition and equipment
- Use: real estate, business acquisition, partner buyouts, equipment, working capital
- Size: up to $5 million
| SBA 504 | SBA 7(a) | Conventional commercial | |
|---|---|---|---|
| Typical down payment | 10%–20% | 10%+ | 25%–35% |
| Owner-occupancy | 51%+ required | 51%+ for real estate | Not required |
| Rate type | Fixed (CDC portion) | Usually variable | Fixed or variable |
| Business acquisition | No | Yes | Rarely |
| Investment property | No | No | Yes |
Program limits and requirements change; we confirm current SBA rules and lender terms for your scenario.
How much do you need to put down?
Compare the conventional route with SBA 504 and SBA 7(a) on the same property. The analyzer shows the lowest down payment each route allows based on loan-to-value limits and the property's debt coverage, plus your payment, cash flow and return.
Deal analyzer
Enter a price and income to see the loan, payment, cash flow and returns. Drag the slider to change your down payment.
Lowest down payment: Conventional vs SBA
Uses the price and NOI above. Lenders cap the loan two ways: by loan-to-value and by debt coverage (DSCR). Your minimum down payment is whichever is higher. Edit the assumptions in the table.
| Route | Rate | Amort. | Min. down | Min. DSCR | Lowest down payment | Loan | Monthly payment | DSCR | Cash-on-cash |
|---|---|---|---|---|---|---|---|---|---|
| Conventional commercial Investment or owner-user | $625,000 (25.0%) | $1,875,000 | $12,955 | 1.29 | 7.1% | ||||
| SBA 504 Owner-user · 50% bank + CDC | / | $362,500 (14.5%) | $2,137,500 | $14,491 | 1.15 | 7.2% | |||
| SBA 7(a) Owner-user · variable rate | $875,000 (35.0%) | $1,625,000 | $14,481 | 1.15 | 3.0% |
The SBA 504 rate column shows bank / CDC rates. SBA loans require your business to occupy at least 51% of the property; for owner-users, enter your business cash flow available for rent as NOI. Example rates only; closing costs, SBA guarantee and CDC fees are not included. Estimates, not a loan offer.
Documents typically needed
You don't need these to get started, but having them ready speeds up approval. Exact requirements vary by lender and loan program.
All commercial loans
- Government-issued photo ID for each owner/guarantor
- Personal financial statement (assets, debts, net worth)
- Schedule of real estate owned
- Entity documents: articles, operating agreement or bylaws, EIN letter
- Credit authorization
- Bank statements showing down payment and reserves (usually 2–3 months)
Investment property purchase
- Signed purchase agreement
- Current rent roll and copies of all leases
- Trailing 12-month operating statement (T-12) and prior 2 years of operating history
- Property tax bill and insurance quote
- 2 years of personal and business tax returns (often not required for DSCR loans)
- Property photos and any existing reports (Phase I, inspection, survey)
SBA 7(a) & 504 (owner-user)
- 3 years of business tax returns and 3 years of personal tax returns
- Year-to-date profit & loss and balance sheet
- Business debt schedule
- SBA Form 413 (personal financial statement) for each 20%+ owner
- SBA Form 1919 (borrower information form)
- Owner resumes and a short business overview
- Purchase agreement or construction budget; projections for start-ups or expansions
Business acquisition (SBA)
- Letter of intent or purchase agreement
- Seller’s last 3 years of business tax returns and year-to-date financials
- Asset list, equipment and inventory schedule
- Lease or real estate purchase terms for the business location
- Buyer’s resume and relevant industry experience
- Gas stations: fuel volume reports, brand/supply agreements and environmental reports
Refinance & cash-out
- Current mortgage statement and note terms
- Rent roll, leases and T-12 operating statement
- 2 years of tax returns (personal and business)
- Purpose of cash-out (if applicable)
- Recent property insurance declarations
Bridge & value-add
- Purchase agreement or current loan payoff
- Business plan and renovation or lease-up budget
- Exit strategy (refinance or sale) and timeline
- Track record of similar projects
- As-is and as-stabilized income projections
How it works
- Share your scenario. Property, price or value and the loan you have in mind. Takes about two minutes.
- We screen lenders. Banks, SBA lenders, CDCs, DSCR and bridge lenders, matched to your deal.
- You compare options. Realistic terms side by side, and what each lender will need.
- We manage the process. Application, appraisal, underwriting and closing, coordinated with your purchase.
Commercial & SBA financing FAQ
Do you arrange SBA loans?
Yes. We arrange SBA 7(a) and SBA 504 loans for owner-occupied commercial property and business acquisitions, working with SBA lenders and Certified Development Companies (CDCs).
What is the difference between SBA 7(a) and SBA 504?
SBA 504 is built for buying or building owner-occupied real estate and major equipment, usually with 10% down and long-term fixed rates on the CDC portion. SBA 7(a) is more flexible: it can combine real estate, a business acquisition, working capital and equipment in one loan, typically with a variable rate.
How much of the building must my business occupy for an SBA loan?
Generally at least 51% of an existing building, or 60% of a newly constructed building. You can lease the remaining space to tenants.
What is the lowest down payment to buy a commercial property?
For an owner-user, SBA 504 or 7(a) can be as low as 10% down (15%–20% for start-ups or special-purpose property). Investment property usually needs 25% to 35% with a conventional or DSCR loan. The property income also limits the loan, so the real minimum can be higher; use the down payment calculator on this page to check your deal. SBA 504 commonly requires 10% down (15% for a start-up or special-purpose property, 20% if both). SBA 7(a) often requires 10% or more. Conventional commercial and investment loans usually require roughly 25% to 35%.
What is DSCR and why does it matter?
Debt service coverage ratio is net operating income (or business cash flow for owner-users) divided by annual loan payments. Many lenders look for 1.20 to 1.30 or higher, and it often decides how large a loan you can get.
Do I need to send tax returns or bank statements now?
No. Start with the scenario form. We never ask for your Social Security number or financial documents through the website. When you move forward, we collect documents securely.
Can you help with both the purchase and the loan?
Yes. Salimi Investments is a licensed real estate broker and mortgage broker, so we can find and negotiate the property and arrange the financing in one relationship.
Where do you lend?
We arrange commercial and SBA loans across California and nationwide through our lender network. For residential and Non-QM home loans, visit our mortgage site, SI MTG.