Question 1

How much of the building must my Longview business occupy?

Accepted Answer

At least 51% of an existing building, and at least 60% of new construction. The rule is 13 CFR 120.131. For new construction the owner must occupy at least 60% and only 20% may be permanently leased to others, with a phased plan for the rest. The natural local borrower is an oil-field service or small industrial owner buying the building the business operates from, so plan the occupancy split before you pick a building.

Question 2

What does the borrower put down on a 504 loan?

Accepted Answer

10% in the ordinary case, 15% or 20% in two common ones. Under 13 CFR 120.910 the contribution is 10%, rises to 15% if the business has operated less than two years or the building is single-purpose, and is 20% if both apply. The 504 portion is capped at 40% of the project (13 CFR 120.930). The 504 maximum is $5M in the standard case, and $5.5M only for small manufacturers and qualifying energy projects (13 CFR 120.931). Manufacturing was about 14.6 thousand jobs in the Longview metro in July 2026, so some local owners may be in that category. Rates and structure are set by the lender and in underwriting.

Question 3

Were SBA fees waived?

Accepted Answer

Not in FY2026: fees were reinstated for loans approved October 1, 2025 through September 30, 2026. For that fiscal year, upfront 7(a) fees returned at 2% to 3.5% and up by loan size, where loans under $1M had carried none in FY2025, and the 504 upfront fee returned at 0.50% with the annual fee cut to 0.209%. Small manufacturers were treated differently in FY2026: 7(a) loans up to $950K carried no upfront fee, and 504 fees were waived. FY2027 began October 1, 2026 and we have not confirmed its fee schedule, so check the current SBA notice before you budget.

Question 4

Who can own a business that takes an SBA loan?

Accepted Answer

Only US citizens and nationals, since March 1, 2026, as of our August 2026 research. Under SBA Policy Notice 5000-876441, 100% of direct and indirect owners must be US citizens or US nationals with a US principal residence, and legal permanent residents cannot own any percentage. The posted SOP 50 10 8 still shows older text; the notice governs. If a partner holds a green card, that ownership has to be resolved before you apply. SOP 50 10 8, effective June 1, 2025, also raised the SBSS score floor from 155 to 165.

Question 5

Where do SBA rates stand, and are they a USA Mortgage rate?

Accepted Answer

They are market SBA rates set by the lending side, and they change monthly. As of August 2026 the prime rate was 6.75%, unchanged since December 11, 2025. Two CDCs showed a 25-year 504 debenture rate of 6.272% in August 2026, all-in with CDC, SBA and servicing fees. The 7(a) variable ceiling over $350K is prime plus 3.0%, or 9.75% at that prime. We are a placement source and these are not USA Mortgage rates; check the current figure before you plan on one.

Question 6

What does it cost to carry and build out a Longview building?

Accepted Answer

The owner pays the full property tax stack, and commercial work permits on a valuation schedule. On 2025 rates, county plus city plus school district is 1.996131 per $100 in Longview ISD, 2.202134 on Kilgore's Gregg side and 1.395234 in Hallsville, with no homestead exemption. The city's commercial permit schedule starts at a $210 minimum up to $31,000 of value and adds plan review at one-third of the building permit fee. Commercial mechanical, electrical, plumbing and gas permits are $105 each. We found no published permit turnaround time, so ask Development Services before you schedule a move-in date.

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