Business Expansion Loans

Expansion loans offer flexibility and favorable terms because lenders can easily view the historical performance of the business to make decisions. Because you are an established business (and not a start-up), there are minimum equity injection requirements – which means less cash that you’ll have to put down.

Another benefit is Live Oak’s attractive maturity rate of up to 25 years, plus the construction period. If 51% or more of loan proceeds are used for commercial real estate, including construction and soft costs, the loan qualifies for a 25-year repayment term. If the loan will be used for a combination of purposes, we utilize what’s known as a blended maturity depending on mix of loan proceeds.

Additionally, borrowers can set up an interest reserve for the construction phase of their real estate. A portion of proceeds will be set aside to pay for interest during construction period (i.e. 12 months) so the borrower doesn’t need to worry about payments during that time. An interest-only period is also available, where the borrower pays just the interest on the loan for a set amount of time. This can be helpful for a business looking to ramp up their cash flow before taking on the full principal and interest payments.