We’ll reveal groundbreaking strategies to finance your real estate with zero down! In this exclusive interview, Brandon Sandler of Live Oak Bank shares insider tips on SBA loans, business acquisition financing, real estate purchases, and partnership buyouts. Discover how to secure 100% financing for your business and even renovate real estate—all while keeping more cash in your pocket. Don’t miss this episode packed with actionable advice for business owners and entrepreneurs!
Why SBA Loans Are a Game-Changer
SBA (Small Business Administration) loans are a powerful tool for business owners looking to buy or renovate real estate, acquire or start a business, purchase inventory or equipment, secure working capital, and conduct partnership buyouts. Unlike traditional loans, SBA loans often require less upfront capital, making them more accessible to small business owners.
100% Financing: A Revolutionary Opportunity
In a groundbreaking development, Live Oak Bank offers an SBA 7(a) loan program with up to 100% financing. This means qualified business owners can purchase real estate without a down payment, cover renovation costs within the loan, and keep more cash available for business operations. Previously, SBA loans required at least 10% down, but this innovative program is opening doors for many entrepreneurs.
Who Qualifies for an SBA Loan?
To qualify, borrowers generally need a business that has been operating for at least two years, positive financial performance based on tax returns and profit-and-loss statements, a credit score of 660 or higher, and no prior bankruptcies. Brandon emphasized that SBA loans are ideal for businesses occupying at least 51% of the property they’re purchasing, including industries like medical, dental, veterinary, retail, and more.
Partner Buyouts Made Simple
SBA loans aren’t just for property or business purchases—they also facilitate partnership buyouts. If you want to buy out a partner or purchase a share of a business, SBA loans can now finance these transactions. This flexibility allows businesses to transition ownership more smoothly than ever.
SBA 7(a) vs. SBA 504 Loans
For those unsure about which loan to choose, here’s a quick comparison:
SBA 7(a) Loans
- Great for real estate, renovations, and working capital.
- Offers up to $5 million in financing, potentially with 100% coverage.
- Single-loan structure with the bank.
SBA 504 Loans
- Ideal for larger real estate purchases or heavy equipment.
- Can finance up to $20 million but requires 10% down.
- Involves two loans: one from the bank and one from a CDC (Certified Development Company).
Each option has pros and cons, but Live Oak Bank helps borrowers determine the best fit based on their goals.
Expanding Your Business with SBA Loans
Brandon highlighted how SBA loans can help existing businesses grow:
- Working Capital Loans: Perfect for hiring staff, marketing, or expanding to a new location.
- Equipment Financing: Funds to purchase new tools or machinery.
- Inventory Purchases: Ensures businesses can scale up without cash flow issues.
Key Takeaways
Here are some key takeaways for Small Business Owners and Entrepreneurs:
- Explore 100% Financing: The SBA 7(a) loan is a game-changer for business owners with limited cash reserves.
- Think Beyond Real Estate: SBA loans can finance partner buyouts, equipment, inventory, and even business acquisitions.
- Qualify for Multiple Loans: Businesses can secure several SBA loans as long as the total doesn’t exceed $5 million for 7(a) loans or $20 million for 504 loans.
- Leverage Green Incentives: By making your property energy-efficient, you can qualify for additional financing through SBA’s green program.
How to Get Started
If you’re ready to take your business to the next level, consider reaching out to Live Oak Bank. They operate in all 50 states and Puerto Rico, offering personalized guidance and innovative financing solutions.
Contact Brandon Sandler
📞 Phone: 949-751-8832
Take advantage of these opportunities to grow your business, invest in real estate, and secure your financial future.
