Does It Make Sense To Own Or Lease Real Estate? (NAPSA)—There could be good news for small-business owners. Some of the key provisions in the economic stimulus package have had an immediate positive impact on both borrowers andlenders. Small-business owners seeking to start up, acquire, expand or refinance through a Small Business Administration (SBA) loan can take advantage of the temporary fee elimination for borrowers, which will be waived through the end of the year. This is significant because no points are charged on an SBA loan. The only closing costs include third-party reports, title fees, searches, legal fees and packagingfees. Another important change is the increase in the percentage of the loan the government will guarantee. Under the stimulus plan, the guarantee will increase from 75 percent to 90 percent. The increased guarantee means that lenders may be more willing to finance other business transactions, including start-ups, nonsecured opportunities and business expansions. With interest rates at historic lows, now is a great time for small businesses to consider owning real estate. Owning builds equity, and once a mortgage is paid off, the property is yours. With leasing or SE —_— Now may be the best time in a long time to buy office space. renting, lessees are required to negotiate renewals and the landlord may sell the building or not renew thelease. If you are leasing, think about your present situation. Is it ful- filling your company needs? Is it cost effective? Does the space work for your business, and can you grow with it? Have you learned about the advantages of owning versus leasing in termsof interest expense, depreciation and so on? If you’d like to see a financial comparison of owning versusleasing, call an experienced commercial real estate professional at CIT (www.smallbizlending.com). CIT has been the No. 1 SBA 7(a) volume lender for the past nine consecutive years and specializes in commercial real estate loans for small businesses across the country.
