Refi from a SBA loan on a commercial property.

[Kevin Boyd]

I purchased a 17 unit, 3 building retail/warehouse space for $2.15 mil. about 16 months ago. At the time it was about 65% occupied. It appraised for $2.3 million. I've done some remodeling, I have it fully rented, and have increased rents a bit. I purchased with an SBA loan with about $450k down. 

I'd like to refi into a better rate and potentially capture some equity. This was my first commercial deal. The previous owner recommended I get a new loan through an insurance company. Anyone with a recommendation? TIA 

[Dan Wallace]

@Kevin Boyd if you are looking to refinance already, I assume you secured an SBA 7a and the terms are not great. Making that assumption, you appear to be in year 2 so that means you have a 3% prepayment penalty. You would want to wait until at least you dropped down to year 3 where you have a 1% penalty.

You had a good down payment when you bought the subject property and I assume your LTV is even better. To be SBA eligible you must have been at least 51% owner occupied. I think you could get good conventional commercial financing terms, especially if you are in a major metro area. There are some really good conventional programs out there for this type and size of project.