Can You Get Marina Financing With An SBA 7(a) Loan?
In 2017, the marina and boatyard industry generated approximately $5 billion in revenue and employed more than 35,000 people across the United States. If you’re interested in purchasing or expanding a marina or boatyard, or refinancing debt on a marina or boatyard that you already own, an SBA 7(a) loan could be a fantastic option.
Marina Financing and the SBA 7(a) Loan Program
Whether you’re interested in building a new marina, or buying and expanding an existing one, the SBA 7(a) and SBA 504 loan programs both allow borrowers to purchase commercial real estate. However, only SBA 7(a) loans allow borrowers to use loan proceeds for working capital. Plus, SBA 7(a) loans are guaranteed up to 75% by the Small Business Administration (SBA) and permit a maximum loan amount of up to $5 million.
SBA 7(a) loans can be used for uses inlcuding:
Building a new marina: SBA 7(a) loans can fund all aspects of new marina construction, including expenses such as sprinkler systems, alarms, and other security systems.
Purchasing an existing marina: SBA 7(a) loans can be also used for purchasing an existing marina, and can also be used to fund renovations, expansions, and improvements to it. And, with the SBA’s new business acquisition policy, borrowers interested in purchasing a marina can get up to 90% financing from the SBA by combining 5% cash down with a 5% seller note. Keep in mind, however, that marina lenders who are approved by the SBA to issue 7(a) loans might not be quite as generous, so the exact amount of financing a borrower may receives may vary.
Marina refinancing: If you want to refinance certain kinds of business debt on a marina that you currently own, you may also be able to do so with an SBA 7(a) loan. To be eligible for refinancing, the debt must have been used for purchases that would have been eligible for SBA financing in the first place (i.e. working capital and commercial real estate, not personal expenses.)