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Old 10-07-2014, 03:17 PM
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Default Has Anyone Used A SBA Loan For New Location?

Hello,

I am in the process of purchasing a large lot of land that has a house (where I would live) and two other buildings that would be childcare. I am currently licensed as a home daycare for 7 children. This lot would allow licensing as a center, and would allow me just under 40 kids. There is a 6-8 month zoning battle I would go through after I purchase the property.

My question:

Has anyone ever used an SBA loan for a mixed use property purchase? Does anyone have any advice on this?

Has anyone ever used an SBA or conventional bank loan to cover capital when moving from one home daycare location to another, to cover the gap in enrollment after relocation?


Thanks!
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Old 10-08-2014, 05:05 AM
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Hmmm. Never used such a combo loan package. You mentioned a zoning battle, do you have a workable plan if you don't get the zoning you need? Would the zoning failure impact terms of the sba loan? If you don't get zoned would you still want the property?
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Old 10-08-2014, 07:01 AM
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I had.14 months of zoning.battle, so I can relate. If a center is an "allowable use" on this property, the battle may not be that long!

I did not use an SBA loan. I did traditional financing.
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Old 10-08-2014, 12:39 PM
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Thanks for the replies!

The zoning battle is getting more simple by the day, we now have the district Chair Man behind us, and the process should be expedited.

In my county, there is a Special Exception to have a Daycare or nursery school on a residential lot, and the process takes about 5-6 months. I have a pre-approval meeting with zoning next week to give me a really good idea of what types of setbacks I might encounter.

We have also taken into account the "what if", which is renting out one of the buildings for rental income, and using the other as a Home Daycare, which with the square footage, we would be able to have 12 children, the numbers still work, but there is much less room to fail.
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Old 10-08-2014, 12:45 PM
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Quote:
Originally Posted by Sugar Magnolia View Post
I had.14 months of zoning.battle, so I can relate. If a center is an "allowable use" on this property, the battle may not be that long!

I did not use an SBA loan. I did traditional financing.
By Traditional Financing, do you mean a personal mortgage?

Unfortunately, I live in the highest cost of living area in the country, and the property is about double what I am approved for on my own.

The other option we have is to NOT live in the residential home, making the loan a straight 504, rather than mixed use, which is more appealing to lenders of course.

This process is overwhelming, I've re-worked my business plan at least 30 times, since the scenario with zoning keeps changing.
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Old 10-08-2014, 03:24 PM
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Quote:
Originally Posted by MCC View Post
By Traditional Financing, do you mean a personal mortgage?

Unfortunately, I live in the highest cost of living area in the country, and the property is about double what I am approved for on my own.

The other option we have is to NOT live in the residential home, making the loan a straight 504, rather than mixed use, which is more appealing to lenders of course.

This process is overwhelming, I've re-worked my business plan at least 30 times, since the scenario with zoning keeps changing.
Yes, it was a regular, personal mortgage.
I would give the SBA loan a shot. I heard it is difficult, but possible. The property sounds very interesting and has lots of possibilities. Best wishes!
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