5 General Steps to Purchasing a Building using SBA Financing

Following is a timeline with a list of items that should be addressed during each specific time period. This is a general timing format subject to change according to the specific transaction. It is very important to work with a knowledgeable Commercial Real Estate Broker when purchasing property.

  • Pre-Escrow
    • Negotiate Contract
  • Open Escrow
    • Executed Contract
    • Refundable Earnest Deposit
    • Please note contingency period has not started yet
  • Contingency Period (45 Days for example)
    • Day 1 – Begins upon Collection of Building Plans & Due Diligence Materials
    • Schedule Inspections:  Roofer, Electrician, Plumber, General Contractor, etc.
    • Collect Feasibility Material: (CCR’s, Budgets, Existing Alta Survey, Phase 1, Tax Bills, Confirm Zoning
    • Title Insurance
    • Any renegotiating happens within the Contingency Period
    • Final Bank Approvals
    • END of Contingency Period – Please note Earnest Deposit becomes NON-REFUNDABLE
  • Non-refundable (countdown to close) (15 days for example)
    • Continue Contact with Bank
    • Prepare to close
    • Receive Settlement Statement from Bank
  • Close of Escrow– Get keys and Move in!