Auto Repair Shop Loans
Commercial real estate loan options for auto repair shops include bank loans, SBA 7(a) loans, SBA 504 loans, and even life company loans for larger auto repair businesses.Better Financing Starts with More Options$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get Quotes
Auto repair shops provide an essential function for the well over 200 million drivers in the United States — but they need financing in order to grow. So, whether you need a $500,000 loan to start a small auto body repair shop, or $5 million to refinance a massive auto repair center, Commercial Real Estate Loans has you covered.
Auto Dealership Loan Terms
While specific loan terms vary based on the individual customer, in general, our auto repair center loan terms include:
Loan Size: $500,000+
Loan Purpose: Loan can be used for property acquisition or refinancing, but cannot be used for business-only financing
Loan Term: 3, 5, 10 and 15-year fixed-rate terms
Amortization: 15, 20, 25, and 30-year options
Leverage: 80% LTV allowance (subordinate debt allowed)
DSCR: 1.40 minimum DSCR
Recourse: Loans are typically full recourse
Credit Score Requirement: 660 minimum
SBA Loans for Auto Repair Centers
Many auto repair center owners find that the SBA 7(a) and SBA 504 loan programs are a fantastic way to fund their businesses. Unlike traditional real estate financing, SBA 7(a) loans can fund equipment and to provide working capital for auto repair centers and body shops. This makes them significantly more flexible than many other loan products on the market. Despite that, it's important to realize that SBA loans require business owners to have excellent credit and little to no debt in order to qualify.
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