real estate with business

August 19, 2024
by a searcher in Dallas, TX, USA
trying to better understand loan terms for businesses with the real estate included.
is the total term for both the business and real estate = 25 years .... OR only the r/e = 25 years and the business is 10 years?
thanks.
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
However, you have to be doing an asset purchase on the business in order to get an amortization above 10 years. If you are doing a stock purchase on the business, the SBA has this new clause in the updated SOP that says a stock purchase cannot be more than 10 years in term. So in order to get a 25-year term on the real estate, you would need to do the real estate and business acquisition in separate loans. The hope is this rule will change in the future, but for now we have to live with it.
If you have additional questions you can reach me here or directly at redacted
from University of Virginia in Holmes, NY 12531, USA