A lot of business owners used an SBA 7a loan to buy their real estate.
It made sense.
Low down payment.
Flexible underwriting.
You were able to get into the building without tying up all your cash.
But now a few years have passed, and you’re looking at something different.
You want a long-term fixed rate instead of a variable loan tied to Prime.
Here is where many borrowers hit a wall.
The same tax strategy that helped you run your business efficiently…
is now working against you when you try to refinance.
I was recently working with a restaurant owner in this exact situation.
They own the building their restaurant operates in. The business is doing well, cash is coming in consistently, and the location is solid.
But their tax returns show lower income because of write-offs, depreciation, and normal business expenses.
When they went to refinance into a fixed-rate loan, the bank came back and said the income didn’t support it.
From the bank’s perspective, the deal didn’t work.
From a real-world perspective, the property and business were performing just fine.
That’s the disconnect many owners are running into right now.
There are lenders who will look beyond just the tax returns and evaluate:
• actual cash flow coming into the business
• bank statements and deposits
• CPA-prepared financials
• the strength of the property itself
These are not “stretch” loans. They are simply structured differently.
If you’re in a position where you bought your property with an SBA loan and now want to move into a more stable, fixed-rate structure, but the tax returns aren’t telling the full story, this may be helpful:
https://applycommercialloans.com/no-tax-return-commercial-loans
If nothing else, it will give you a clearer picture of what lenders are actually looking at right now.
Karen Schimpf
Commercial Loan Advisor
512-358-1511
karen@applycommercialloans.com
P.S. Despite the economic and political noise, business activity is very strong right now. Many investors are moving money out of the stock market and into buying, expanding, or starting businesses. That is exactly we’ve been closing.
We recently financed a restaurant acquisition, a medical clinic purchase, and a franchise startup — deals many banks would have declined.
If you are acquiring or starting up a business, call me at 512-358-1511 to discuss your scenario. One call can usually tell you quickly what is possible.