SBA 504 Loans for Industrial Buildings
Many of the industrial properties that we have financed are for manufacturers. We believe that manufacturing has been one of the engines in making our country’s economy the largest in the world and remains a vital component in the creation of jobs. These business owners are America’s producers and we’re honored to help make their dreams of commercial real estate ownership become a reality.
15 Years of Experience
The SBA 504 loan, the loan we specialize in, is the perfect option for business owners who are looking for a small business loan to help them purchase, renovate, build, or refinance their own retail building. When manufacturers hear we specialize in “small” business finance, they are surprised to learn that we can finance their large industrial properties. We’ve actually closed a loan for a single-user industrial property that was 115,000 SF with a total project cost of $12 million. An additional benefit for manufacturing firms is that the SBA allows the maximum 2nd mortgage to go up to $5.5 million, instead of $5 million for all other projects, helping to finance these larger projects. So if you’re concerned about your project fitting within the “small” business loan parameters of the 504 loan, give us a call and we can discuss it.
Let Mercantile Finance the Equipment As Well
We also recognize industrial property users, and in particular, manufacturers may have large equipment needs as well. The SBA 504 loan allows for equipment purchases to be included in the financing, which may provide longer and more favorable repayment terms than if you were to finance or lease the equipment separately. We provided loans for a large steel slitting enterprise in AL and a waste products recycling company in FL, where in each transaction the equipment costs alone exceeded $5 million.
Expertise in Construction Financing
Purchasing your industrial property will more than likely require construction or renovation of the property to customize it to your specific needs. Over half of the loans we’ve closed in the past five years have included significant renovation or were ground-up construction. With Mercantile, you’re getting an experienced construction lender that can guide you through this process. Contact us to learn how you can benefit from our expertise.