Pathway to Ownership: Own the Business, Own the Building, with the SBA 504 Program

Every month, many business owners write a rent check that builds someone else's wealth instead of their own.

For some entrepreneurs, owning the building where they operate seems out of reach. But it doesn't have to be. The U.S. Small Business Administration's (SBA) 504 loan program helps small and mid-sized businesses buy, build, and refinance commercial real estate with affordable, long-term financing.

Owning your building is about more than real estate. It is about investing in your future, building equity, creating stability, and gaining greater control over your business.

Turning Rent into Wealth

The SBA 504 loan program was created to help businesses achieve ownership with long-term, fixed-rate financing for 10, 20, or 25 years. With down payments often as low as 10%, business owners can preserve working capital while converting one of their largest monthly expenses into an investment that builds equity over time.

Ownership also provides certainty. Instead of facing lease renewals, rising rents, or the possibility of relocating, owners gain control over their future while building an asset that can support future expansion, retirement, or succession.

One SomerCor client, a recycling and trucking company in Bedford Park, used the SBA 504 loan to purchase a larger facility. The company doubled its operating space while reducing occupancy costs by 30%, saving approximately $75,000 annually. Instead of paying rent, every mortgage payment now builds value for the business.

Building a Space That Works for Your Business

Sometimes growth needs more than buying an existing building — it requires creating one designed around your business.

After years of leasing a facility that limited efficiency, a Lake Zurich commercial printer worked with SomerCor to purchase land and construct a new building tailored to its production process. The new facility improved workflow while lowering occupancy costs by more than 20%, generating nearly $40,000 in annual savings.

Whether renovating an existing property or building from the ground-up, the SBA 504 program gives business owners the flexibility to create a space that supports long-term success.

Unlocking Value Through Refinancing

For businesses that already own commercial real estate, the SBA 504 refinance program can improve cash flow while preserving ownership.

By refinancing existing commercial debt into long-term, fixed-rate financing, eligible businesses can lower monthly payments and, in many cases, access equity for qualified business expenses — including salaries, inventory, and utilities.

Another SomerCor business client in St. Charles used the program to refinance its headquarters, significantly improving cash flow and reducing occupancy costs, saving more than $500,000 annually.

Own the Business. Own the Building.

For many entrepreneurs, their business is their life's work. Owning the building where that business operates transforms monthly occupancy costs into an appreciating asset that can support future expansion, strengthen retirement planning, or become part of a family legacy.

At SomerCor, we have helped thousands of businesses take that next step through the SBA 504 program. Commercial real estate ownership builds wealth, strengthens financial stability, and creates opportunities for growth while allowing entrepreneurs to invest in themselves rather than their landlord.

If you have ever wondered whether owning your building is possible, now is the time to contact the SomerCor team and start the conversation.

Because when you own the business and own the building — you own more of your future.

• Eric Bacon, SomerCor SVP, Managing Director of 504 Loan Originations