By far the most positive aspect of commercial real estate financing is now SBA loans. Via the Obama Stimulus Package, SBA loan are still funding and the banks that are still in the market, are pushing all of their customers to go this route.
For banks, the Stimulus Package increased the guaranteed portion of the SBA 7a loan from 75% to 90%. Though many bankers will tell you this doesn’t mean that much, because the government can get out of following through on the guarantee, having some type of backing is a lot better than none at all.
For borrowers the main benefit is having a closed loan. A lot of borrowers don’t realize the significance of this point. Others include the widely published reduced fees (for example on the SBA 7a program, the normal fee of 2.75% has been temporally eliminated ). Other major benefits include 90% financing and 25 year amortization schedules.