Build a Solid Foundation with Construction Loans
If businesses have big plans to grow, they may need a new or upgraded facility to make that plan a reality. However, small or rural businesses might not have the funds for a down payment or a conventional lender willing to offer financing. A commercial construction loan from Ready Capital can enable those who have exhausted other options to obtain funding backed by a government guarantee.
SBA Commercial Construction Loans
A for-profit small business (according to the Small Business Administration’s definition) may be eligible for an SBA 7(a) loan.
- SBA 7(a) Loans: New construction and renovation projects are eligible for up to $5 million in SBA 7(a) funding. Because of its minimal down payment and collateral options, Ready Capital recommends this loan type for businesses with smaller-scale construction plans.
USDA Commercial Construction Loans
For-profit or nonprofit business owners, public entities, and other eligible groups in rural areas have several USDA loan options available for commercial construction, including:
- USDA B&I Loans: This loan program offers similar benefits to SBA 7(a) loans, but only rural businesses or projects are eligible for up to $25 million in funding.
- USDA REAP Loans: The Rural Energy for America program can assist with financing energy efficiency improvements and equipment, up to $25 million.
Find Out About Our Commercial Construction Loan Requirements
In a 15-minute phone call, a Ready Capital team member can determine if a commercial construction project is eligible for USDA or SBA funding. Speak with an expert today to discover various options.
Benefits of a Government-Guaranteed Business Construction Loan
Conventional construction financing often isn’t viable for businesses with limited capital or special use purposes for their facility. Although government-guaranteed loans are available as a plan B, they still offer highly favorable conditions to borrowers, including:
- Low down payment requirements and higher advance rates than convention loans (as much as 80–85% of the collateral’s value)
- Amortization without a balloon payment at the end of the term
- Long loan terms
- A government guarantee for a large percentage of the total loan amount
- Single-digit interest rates for many loans
Ready Capital can guide borrowers through their loan options and help determine which commercial construction loan program (or programs) offers the most financial freedom.
Why Choose Ready Capital as a Commercial Construction Loan Lender?
At Ready Capital, we’ve spent years successfully structuring and closing business loans for companies nationwide. Government loans aren’t just one financing option we offer—they’re our specialty. As a result, our team members have experience closing every type of USDA and SBA loan and working with government offices to ensure success. We’re proud to maintain a high closing rate, and we’ll do everything to obtain the funding businesses need.
