Government loans spur investment in small commercial properties

Small scale commercial property growth spurred by government support

You may not have noticed it, but a lot of people are making money in the small scale commercial real estate business in Las Vegas. The types of businesses we’re talking about are things like small restaurants, corner stores, converted gas stations, and strip malls. And it’s all thanks to the Small Business Administration, which is becoming the lender of choice for smaller operators who have found themselves locked out by bank lenders and other conventional organizations.

Even though interest rates are at their lowest level in decades, banks expect investors to put up 25% or more as a down payment, something a lot of wary business owners are not willing to do. But with the government in on the act, down payments are much more modest, and this gives business owners more breathing room. Banks them tak on 50% of the loan, which makes them happy.