Re: [Coworking] SBA 504 loan eligibility - passive?

Agree with Jerome, and I would add to that is that you would qualify for SBA if you occupy only 51% of the building as a coworking space and rest can remain as regular tenants if they already exist, say hair salon or a retail store, office etc. My Best, *Hasan Mirjan* *SphereMail.co

Re: [Coworking] SBA 504 loan eligibility - passive?

I managed to acquire two buildings through SBA as a coworking space operation. One thing you need to make sure is that you make it clear to the bank that it is not a landlord/tenant relationship but rather a membership based service similar to a gym membership. In addition you are offering other se

Re: [Coworking] SBA 504 loan eligibility - passive?

Sounds like a plan! Actually that's more or less the set-up we have now. I own the building 50/50 with an investor, and I own the coworking 50/50 with another person and we lease and sublease the space, furnish it and organise activities etc... So it's a little more dubious. But good plan to alwa

Re: [Coworking] SBA 504 loan eligibility - passive?

Hi Scott, I would be curious to know how your experience went! I'm currently starting up a coworking space, we already own the building but we're looking for money for renovations. One part I inquired for are solar panels, and the 504 sba green loan, but there I've been denied because I don't occu

Re: [Coworking] SBA 504 loan eligibility - passive?

Please be careful when you say “rent” as that invokes state regulations regarding your “tenant’s” occupancy. Most/all coworking spaces uses “memberships” like one would join a country club. Therefore, to get this 504 loan, I would recommend using another LLC to legally “rent” out the entire build

[Coworking] SBA 504 loan eligibility - passive?

I’m exploring getting an SBA 504 loan to purchase the building I’ve been in for 10 years. They’re arguing that coworking isn’t eligible, as it’s a passive business, primarily engaged in real estate in which we lease (license) it out to