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
Better Financing Starts with More Options$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get QuotesIn 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 including:
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.)
Related Questions
What are the requirements for obtaining an SBA 7(a) loan for marina financing?
The SBA 7(a) loan program is a great option for marina financing. To be eligible for an SBA 7(a) loan, borrowers must meet the following requirements:
- A credit score of at least 680
- A minimum of two years in business
- A debt-to-income ratio of no more than 50%
- A minimum of 10% equity in the business
- A minimum of $100,000 in annual revenue
For more information on SBA 7(a) loans, please visit this page.
What types of marina projects are eligible for SBA 7(a) financing?
SBA 7(a) loans can be used for a variety of marina projects, including building a new marina, purchasing an existing marina, and refinancing certain kinds of business debt on a marina that you currently own. SBA 7(a) loans can fund all aspects of new marina construction, including expenses such as sprinkler systems, alarms, and other security systems. They can also be used to fund renovations, expansions, and improvements to an existing marina. 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. 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).
For more information on SBA 7(a) loans, please visit https://sba7a.loans.
What are the advantages of using an SBA 7(a) loan for marina financing?
The SBA 7(a) loan program offers several advantages for marina financing. These include:
- The ability to purchase property, buy equipment, and get working capital for your business.
- The ability to build a new marina, purchase an existing marina, and fund renovations, expansions, and improvements.
- The ability to refinance certain kinds of business debt on a marina that you currently own.
- 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.
- The SBA's new business acquisition policy allows borrowers to get up to 90% financing from the SBA by combining 5% cash down with a 5% seller note.
What are the disadvantages of using an SBA 7(a) loan for marina financing?
The main disadvantage of using an SBA 7(a) loan for marina financing is that it has stricter requirements than other kinds of financing, including increased credit score requirements. Additionally, SBA 7(a) loans have a maximum loan amount of up to $5 million, so if you need more than that, you may need to look into other financing options. Finally, 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.
Source: www.commercialrealestate.loans/marina-loans and www.sba7a.loans/sba-7a-loans-small-business-blog/marina-loans
What are the steps involved in applying for an SBA 7(a) loan for marina financing?
The steps involved in applying for an SBA 7(a) loan for marina financing include:
- Gather the necessary documents, such as business and personal tax returns, financial statements, and a business plan.
- Find an SBA-approved lender who is willing to finance your marina.
- Submit your loan application and supporting documents to the lender.
- Wait for the lender to review your application and make a decision.
- If approved, sign the loan documents and receive the funds.
For more information, please visit https://sba7a.loans/sba-7a-loans-small-business-blog/marina-loans.