Commercial Mortgage Insider Blog

Why are SBA loans more important than ever for small businesses?

Approval rates - Recent bank collapses alongside another increase in interest rates continues to shift the industry to increasingly stringent lending standards. With higher credit requirements, fewer businesses will qualify to obtain a loan in the full requested amount. As lenders slow their loan approval rates, small businesses may need to wait longer to receive any loan amounts for which they receive approval.

Credit Cards Average 20% interest - Credit card interest rates have reached an average of 20%. Since most credit cards have a variable interest rate, yesterday’s rate increase directly impacts credit card interest rates. 20% rates reflect an all-time high from March 2022, when the rates hovered at 16.25%. For small businesses that have relied upon credit cards, the interest rate on the cards creates an even larger challenge for businesses that struggle with cash flow.

Inflation Challenges - The Fed’s decision to raise interest rates yesterday is an indication inflation is still a major factor with which to contend. Keeping business growth in pace with the rate of inflation has been exceptionally difficult. Owners would need to grow business profits by 6.0% annually to match inflation rates. For those whose businesses have not grown as rapidly, owners are left to cover the additional cost of goods.

To face adverse market conditions, business owners are urged to secure capital before they need it. SBA loans offer a haven to entrepreneurs. Since SBA loans’ underwriting and credit requirements do not shift with market conditions, they continue to provide the lowest interest rate loans with low monthly payments.

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Small Business Loan Approvals at Big Banks Slip to 14.2% in February 2023

According to the latest Biz2Credit‘s Small Business Lending Index, small business loan approval percentages at big banks slipped again in February, falling from 14.4% in January to 14.2%. This marks the ninth consecutive month in which big bank approval percentages have declined. Meanwhile, approval rates of business loan applications at small banks also dropped in February to 21.3%, down one-tenth of a percent from 21.4% in January 2023.

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EIDL Loans are an IOU to the U.S. Government

Last month, the Wall Street Journal published an article titled "Pandemic Loans Are Coming Due, But Some Businesses Aren't Ready to Repay." As those payments come due, some business owners argue that they did not understand the terms of the loans and that as the economy weakens, they are not well positioned to repay the loans. Business owners must understand that these loans are an IOU to the U.S. government.

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How to Get Your Mortgage Approved While Working as a Freelancer

The key to being approved for a mortgage as a self-employed individual is to provide the bank with ample evidence regarding your financial stability. Being the expert in mortgages, K2 Commercial Finance will provide you with all the information about mortgage options at your disposal and how to deal with lenders.

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Commercial Mortgage, Hard Money Loans, SBA Loans, Stated Income Commercial Loans

Get Fast Commercial Mortgages on all property types. SBA Loans and Stated Income Loans are our specialty. NO Upfront Fees.

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Commercial Real Estate Lending Surges in Q3!

Commercial real estate lending activity surged in the third quarter of 2021, reflecting a healthy rebound of property acquisitions activity, according to the latest research from CBRE.

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CRE Prices hit all time highs!

The Green Street Commercial Property Price Index increased 0.4% in October, continuing a run of all-time highs, the Newport Beach-CA advisory firm reported Thursday. The all-property index has increased 18% this year and is now 9% higher than it was before the pandemic.

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SBA Loan Sale - Time is Running Out!

Everyone should remember that the Covid related benefits for traditional SBA lending expire on September 30th. The benefits include no guarantee fees, and the government will make the first three months of payments on your loan up to $9,000 per month. SBA loans can be uses for purchasing or refinancing owner-occupied real estate, working capital, debt restricting, partner buyouts, startups, and or acquiring a business.

Keep in mind that the September 30th deadline is for a loan to be funded. So to take advantage of the benefits, the clock is ticking to get your application in.

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SBA Loan Sale - Time is Running Out!

Everyone should remember that the Covid related benefits for traditional SBA lending expire on September 30th. The benefits include no guarantee fees, and the government will make the first three months of payments on your loan up to $9,000 per month. SBA loans can be uses for purchasing or refinancing owner-occupied real estate, working capital, debt restricting, partner buyouts, startups, and or acquiring a business.

Keep in mind that the September 30th deadline is for a loan to be funded. So to take advantage of the benefits, the clock is ticking to get your application in.

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Mobile Home Park Business is Booming

Mobile Home Parks have enjoyed high occupancy and strong rental income growth throughout 2020. This is creating high investment demand for parks of all sizes.

K2 Commercial Finance is familiar with multiple loan programs to secure funding for mobile home park acquisitions.

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