SCORE Small Business Blog

Finance: Buy a Home for Your Business in this Economy?
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The answer is absolutely–yes. Now is a great time to consider buying a facility for your business. Commercial real estate prices are stable. Interest rates are still historically low. And, owning your business’ home does lots of great things for you and your company. It stabilizes your costs. It gives you additional tax deductions. It enables you to customize the space for your business needs. And, since real estate always appreciates over time-it helps to build equity for you and your family.
 
When contemplating such a big expenditure, its best to seek financing, which is affordable through 1) low, down payments, 2) long terms and 3) fixed rates. One source to consider is the SBA 504 loan program, a subordinate loan program, which lends up to 40 percent of the total project cost behind your bank or other lender (for 50 percent).

You put down just 10 percent. These loans are for 20 years at below market fixed interest rates. Fixed rates are good- they let you plan over time and you’re not subject to the uncertainty of floating rates.
 
Another good source is the CRF New Market Loan Fund. These loans can go to 25 years. Both SBA 504 and New Market Loans are offered throughout the country by Certified Development Companies. For a list see www.nadco.org. So make business home ownership part of your long term business plan through affordable loans.
 
-Roz Goldmacher, guest blogger

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Discussion (2) Comment

  1. My husband and I are planning to establish a home based business so we are looking for a good house to establish it. I know economy nowadays are not in good terms but we really tried saving money for this business and a new house. I hope it would do well. Thank you for sharing your article.


  2. Jon WeinsteinVisitor

    Roz Goldmacher is one of the single most credible, honest and TOTALLY effective business development experts and ‘enablers’(meant POSITIVELY0 whom I heve ever met, and I am hardly alone in this belief.

 

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