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Use an SBA loan to expand your warehouse business
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High demand leaves small businesses competing for warehouse space
Small businesses looking to purchase a warehouse face a unique set of financial challenges. According to the National Association of Realtors, the median price for commercial real estate has surged by nearly 30% over the past five years. Warehouses have become hot properties, with demand skyrocketing thanks to the growth in e-commerce and logistics. This means businesses looking to expand their storage or distribution capabilities are often met with hefty price tags, pushing financing needs to new heights.
Acquiring a warehouse isn’t just about the purchase price. There are a lot of hidden costs that small businesses need to account for. Think property taxes, maintenance, insurance, and potential renovations. These costs add up quickly, and for small businesses operating on thin margins, coming up with the cash for a down payment or covering these ongoing expenses can feel overwhelming. Add in that shifts in the economy will see rates rise and fall, impacting the affordability of loans.
Long-term financing options can open doors for warehouse purchases
When a business is looking to buy a warehouse, the Small Business Administration (SBA) can offer critical support. The two most popular loan programs, the 7a loan and the 504 loan, are particularly effective for business owners facing high upfront costs. The 7a loan program, for example, provides up to $5 million in funding, allowing small businesses to secure real estate with down payments as low as 10%. This program also offers repayment terms of up to 25 years for commercial real estate, helping businesses manage their cash flow more efficiently.
The 504 loan is another powerful option, specifically aimed at financing fixed assets like warehouses. With a 504 loan, businesses can receive up to $5 million for purchasing or improving commercial properties. One of its main benefits is the fixed interest rate, which provides stability and protection against market fluctuations. This structure enables small businesses to plan better, focusing on growth rather than worrying about fluctuating loan costs.
At First Bank of the Lake, we have extensive experience assisting businesses with their commercial real estate purchases. With our personal approach and deep knowledge of SBA lending, we’ve successfully funded over $1.1 billion in loans to small businesses. If you’re planning to buy a warehouse and need expert guidance, we’re here to help. Let’s make your expansion a reality together.
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Small Businesses Helped 2020-2024
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The First Bank of the Lake rep and I bonded over faith, fishing and finance. They got my loan done in under 30 days in very, very trying circumstances.
Issac Reed
President, Reed’s Moving Services
If we ever need business capital, my first call would be to First Bank of the Lake. Why would I look elsewhere?
Barry Norfleet
Co-founder, Lifetime Green Coatings - Kentucky
I got my $345,000 SBA loan approved from First Bank of the Lake in 35 days!
Kasia Anderson
President, Woof Gang Bakery - Bradenton, FL
First Bank of the Lake was the best banking experience I have ever had.
Andy
Co-founder, President, Winter Park Ski Rental
The bank process was as easy it could be. The biggest thing is how transparent and reliable they were.
Tyler Green
Co-founder, President, Freelite AZ
My First Bank of the Lake rep was great – Easily the finest banker I have dealt with in my life.
Dan Billings
President, Tint World - San Antonio
Big thanks to Emil and the First Bank of the Lake team. I would recommend them to anyone else in a heartbeat and I would absolutely use them again.
Rock Katnic
President, Perfect Moving
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