Question 1

What kind of Pueblo business actually fits an SBA real estate purchase?

Accepted Answer

A manufacturer or an industrial services supplier. Heavy manufacturing is one of the metro's anchor sectors alongside health care and government: a long-rail steel mill investment and CS Wind's multiphase wind-tower expansion are both adding jobs here. Building basis in Pueblo is the lowest of any Colorado MSA, so buying the building your business occupies pencils here at prices that don't work farther up the Front Range.

Question 2

How much of the building does my business have to occupy to qualify?

Accepted Answer

51% for an existing building. Buy new construction instead and the floor rises to 60% occupied, with only 20% allowed to sit permanently leased to someone else under a required absorption plan for the remainder. This is a federal SBA rule (13 CFR 120.131), so it applies the same way in Pueblo as anywhere else. "60% and rent the rest" is not the rule; read the two thresholds separately before you plan your space.

Question 3

What's the maximum 504 loan for a Pueblo purchase?

Accepted Answer

$5 million, standard. That ceiling only rises to $5.5 million for small manufacturers (NAICS 31-33) or qualifying energy projects, under 13 CFR 120.931. Given how much of Pueblo's economy runs through manufacturing and industrial tenants, that carve-out is worth checking before you assume the standard cap.

Question 4

How much cash do I need to put down on a 504 purchase?

Accepted Answer

10% is the ordinary contribution, not a floor everyone gets. It rises to 15% if your business has operated less than two years or the building is single-purpose, and to 20% if both apply. A newer manufacturing or industrial-services business buying a purpose-built Pueblo facility should plan around the higher figure, not the headline 10%.

Question 5

Are SBA fees still waived going into this loan?

Accepted Answer

No, not for FY2026. Fees were reinstated for loans approved between October 1, 2025 and September 30, 2026: 7(a) upfront fees run 2% to 3.5%-plus depending on loan size, and the 504 upfront fee returned at 0.50% with the annual fee cut to 0.209%. Small manufacturers keep a break: 7(a) loans of $950,000 or less carry no upfront fee, and 504 fees are waived for them. Budget the fee into your closing costs rather than assuming last year's waiver still applies.

Question 6

Does Colorado add its own layer of tax on the business that owns the building?

Accepted Answer

Not much of one. Colorado has no franchise tax and no gross receipts tax, and income passes through at a flat 4.4% rate. That keeps the entity-tax picture simpler for a Pueblo business buying the real estate it operates from than in a state stacking a separate business tax on top. Confirm the specifics with your CPA before you set up the purchasing entity.

Question 7

What is the difference between an SBA 7(a) and a 504 loan?

Accepted Answer

The 7(a) is the flexible, all-purpose SBA loan: owner-occupied real estate, business acquisition, partner buyouts, equipment, and working capital under one note. The 504 is purpose-built for owner-occupied commercial real estate and heavy equipment, with a long-term fixed rate and a low down payment. We place both and match your scenario to the right one.

Question 8

How much can I borrow, and how much do I put down?

Accepted Answer

SBA loans go up to $5M, with larger total project sizes possible on the 504 since a bank funds part of the deal. Down payments are low, often around 10%, rising to 15% to 20% for startups or special-purpose properties. On the right deal we finance up to 90%.

Question 9

What are the terms and rates?

Accepted Answer

Terms run up to 25 years for real estate, which keeps payments low. 7(a) rates are usually variable and tied to the Prime rate, while the 504 carries a long-term fixed rate on the CDC portion. Because we place your file across 20+ SBA lenders, we shop your scenario for the strongest terms.

Question 10

Do I have to occupy the property?

Accepted Answer

Yes. SBA real estate loans require owner-occupancy, at least 51% of an existing building or 60% of new construction. That requirement is what separates SBA-eligible deals from pure investment property, which fits our other programs.

Question 11

Do I have to personally guarantee an SBA loan?

Accepted Answer

Yes. The SBA requires a personal guarantee from anyone who owns 20% or more of the business, and on real-estate deals the loan is also secured by the property. This is standard on every SBA loan, not a sign of a weak file, and it is part of why SBA financing offers low down payments and long terms. We will walk you through exactly what you are signing before you commit.

Question 12

How long does an SBA loan take to close?

Accepted Answer

SBA loans are slower than our bridge products, typically 30 to 90 days, because of the documentation and approval process. The tradeoff is a much lower long-term cost. If you need speed now, we can bridge the deal and refinance into SBA later.

Question 13

What do you need to get started?

Accepted Answer

Generally two to three years of business and personal tax returns, business financials, a personal financial statement, and details on the property or business. We will tell you exactly what is needed and place your file with the best-fit lender in our network.

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