RENT vs. PURCHASE SPACE - Small Business Dilemma

Posted by: Leslie R.

Finding a building can be extremely challenging. Once you find it, you should consider whether renting or purchasing makes the most sense. As one of the nation’s leading SBA lenders, California Bank & Trust offers real estate financing expertise and can help you analyze this decision.

Experience the dedication of CB&T’s local bankers and benefit from:

    * SBA Preferred Lender for expedited processing

    * Loan decisions in days not weeks

    * Business financing experts to help you through the process

Loan Programs At-a-Glance

SBA 7(a)

SBA 504

Conventional

As an example, finance your real estate or equipment purchase with 15% down payment and an 85% SBA loan, featuring variable interest rate based on the Prime Rate + spread.

  •     Up to $2,000,000
  •     Up to 25-year amortization
  •     Up to 85% financing
  •     No balloon payments
    •  

As an example, finance your real estate purchase with 10% down payment, a 50% bank loan and a 40% SBA loan, featuring a 20 year fixed rate.

  •     Up to $5,000,000
  •     Up to 25-year amortization
  •     Up to 90% financing
  •     No balloon payments

As an example, finance your real estate purchase with 25% down payment and a 75% bank loan. One popular program features a 10 year fixed rate and 25 year amortization - allowing for a low monthly payment.

  •     Up to $5,000,000
  •     Up to 25-year amortization
  •     Up to 75% financing
  •     Fixed or adjustable rate options

Get Started!

Initial Documentation To Gather for a Financial Package Evaluation

Businesses provide:

    * 3 Years of Business Tax Returns starting with last full calendar year (ie. In 2008: 2007, 2006 and 2005)

    * Current year Interim Business Balance Sheet and Income Statement

    * Copy of monthly rental invoice

    * Purchase Agreement

Business Owner(s) with 20% or greater ownership also provide:

    * 3 Years of Personal Tax Returns starting with last full calendar year (ie. In 2008: 2007, 2006 and 2005)

    * CALIFORNIA BANK & TRUST

Contact: Leslie Riddel, Vice President

Phone: 415-945-0450

Email: lriddel@calbt.com

Last updated: 12.16.2008 06:00 PM