Low-Cost Financing to Protect Your Commercial Real Estate Property

The current economic expansion, the longest in U.S. history, has been made possible in part by the growth of small businesses.  Consumer confidence is high, interest rates are steady, and entrepreneurs are starting businesses at a record pace. How can you capitalize on this strong economy? If you own commercial real estate property where you operate your business, you’re likely experiencing strong price appreciation. Here’s information you need to know.

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The State of the Economy

Despite growth, risks to the economy remain, including rising trade tensions and increased costs resulting from new tariffs. A strong majority of economists recently polled by Reuters now put the chances of a U.S. recession happening in the next two years at 40%.

Dr. Lawrence Yum, chief economist of the National Association of Realtors now forecasts current price appreciation in commercial real estate to end by 2020.

Interest Rates Hold Steady

With this increased chance of recession, the Federal Reserve is expected to hold the Federal Funds Rate at current levels until the end of next year at least.  This is in sharp contrast to the nine rate increases since December 2015.

How Commercial Real Estate Loans Are Affected

While nobody can predict the future, you can certainly plan for it with the information at hand. The slowdown in economic growth could be a blip on the radar or it could be an indication of instability to come. One certainty, however, is for those commercial real estate loans with a near term maturity or balloon payment, refinance risk exists.

If the economy, your industry, or business has suffered a slowdown when the current lender comes to refinance your loan, there is a very real chance of the loan not being approved.  If the property value has fallen below the amount owed, there is a risk of loan default.

The time is right to batten down the hatches, protect the appreciation in the property and refinance into a fully amortizing loan. The SmartBiz Commercial Real Estate program offers the security of a 25 year, fully-amortizing loan, with no balloon payments and interest rates starting at 7%. For more information and to start an application, please visit the SmartBiz website.

The Benefits of a Commercial Real Estate Purchase or Refinance

Unsure of exactly how a Commercial Real Estate purchase or refinance can grow your business? Visit the SmartBiz Small Business Blog to review our comprehensive article: Grow Your Small Business: Purchase or Refinance Commercial Real Estate. The benefits of owning Commercial Real Estate include tax advantages and more. Our article also gives you a list of what to consider before you purchase or refinance and outlines the specifics of SBA Commercial Real Estate Loans offered through SmartBiz Marketplace Banks.
Next Steps

We’re here to help you make the best financial decision to protect your property. Contact our Commercial Real Estate Specialist now to discuss your situation: doug.kilroy@smartbizloans.com. Learn more on the SmartBiz Loans website here.