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100% Financing for Business Expansion with the SBA 7(a)
While most SBA 7(a) loans need a 5-10% down payment, certain lenders are now offering 100% commercial property financing through SBA 7(a) loans. This means that, if they are eligible, a borrower can use a 7(a) loan to buy a business property without putting any money down.
Who is eligible for SBA 7(a) Commercial Real Estate Financing at 100%?
While exact requirements vary by lender, a borrower will need the following to obtain 100 percent CRE financing:
✅ Excellent personal and company credit ratings
✅ A substantial amount of collateral is required.
✅ 1.25x or larger debt service coverage ratio (DSCR)
✅ Cash flow has been consistent and good in the past (1.5 years typically required)
✅ At least 51% of the property in question must be occupied by the business.
The structure must be a general-purpose or multi-purpose structure (properties with highly specific uses are much riskier for both lenders and the SBA)