Small and midsize business owners consider buying real estate instead of leasing more often than most lenders realize. For originators, recognizing readiness, understanding Small Business Administration (SBA) financing structures and coordinating with the broker can determine whether a deal closes smoothly or stalls between contract and funding.
The clearest signal is capital. Buyers need enough cash for a downpayment — roughly 10% for an SBA 504 loan, 10% to 15% for an SBA 7(a) loan or 20% to 25% for conventional owner-occupied financing. Conventional financing involves less red tape and fewer upfront costs, so buyers with enough capital available may choose it even with a higher downpayment.
From there, the decision becomes a straightforw...
