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Daryl Wizinsky & Associates

Business Planning Resources

Whether you are starting a new business, acquiring an existing one, or investing in commercial property, we can connect you with the right resources and financing solutions.

Overview

Building Your Business in Michigan

Michigan offers tremendous opportunities for entrepreneurs and business owners. From established retail corridors to emerging commercial districts, the state's diverse economy supports businesses of every size and industry.

Understanding your financing options is one of the most important steps in business planning. The Small Business Administration (SBA) offers several loan programs designed to help entrepreneurs access capital at favorable terms. Below, we break down the most popular options and how they can work for your business goals.

As a real estate professional with deep roots in the Michigan business community, Daryl Wizinsky can connect you with trusted SBA lenders, commercial real estate specialists, and business advisors to help bring your plans to life.

SBA Loans

SBA 7(a) Loan Program

The most versatile SBA loan program, designed for general business purposes.

The SBA 7(a) loan is the Small Business Administration's primary and most flexible lending program. It can be used for a wide range of purposes, making it the go-to option for many business owners.

Common Uses

  • Working capital and operational expenses
  • Purchasing equipment, fixtures, and inventory
  • Acquiring an existing business
  • Purchasing or improving commercial real estate
  • Refinancing existing business debt
  • Startup costs for new businesses

Key Details

  • Maximum Loan Amount: $5 million
  • Repayment Terms: Up to 10 years for working capital; up to 25 years for real estate
  • Interest Rates: Variable rates based on the prime rate plus a margin
  • Down Payment: Typically 10-20% depending on the use of funds
  • SBA Guarantee: Up to 85% for loans of $150,000 or less; up to 75% for larger loans

The SBA 7(a) program is particularly valuable for business acquisitions and startups that may not qualify for conventional lending due to limited operating history or collateral.

SBA Loans

SBA 504 Loan Program

Long-term, fixed-rate financing for major fixed assets like commercial real estate and heavy equipment.

The SBA 504 loan program is specifically designed for businesses looking to purchase or improve commercial real estate or acquire major capital equipment. It features long-term, fixed interest rates and low down payments.

How It Works

The 504 loan involves three parties:

  • A traditional lender provides approximately 50% of the financing
  • A Certified Development Company (CDC) provides up to 40% through an SBA-backed debenture
  • The borrower contributes a minimum of 10% as a down payment

Eligible Uses

  • Purchasing owner-occupied commercial real estate
  • Constructing new commercial buildings
  • Renovating or improving existing commercial property
  • Purchasing heavy machinery and equipment
  • Refinancing existing commercial real estate debt

Key Details

  • Maximum CDC Portion: $5.5 million (up to $5 million for standard projects)
  • Terms: 10 or 20 years for real estate; 10 years for equipment
  • Interest Rate: Fixed below-market rate on the CDC portion
  • Down Payment: As low as 10%

The 504 program is ideal for established businesses that need to purchase or expand their physical location while keeping cash flow healthy through low down payments and fixed rates.

Acquisitions

Business Acquisition Financing

Purchasing an existing business is one of the fastest paths to business ownership.

Buying an existing business eliminates many of the risks associated with starting from scratch. You acquire an established customer base, trained employees, proven revenue, and existing operational systems. However, financing an acquisition requires careful planning and the right lending partner.

Financing Options for Business Acquisitions

SBA 7(a) Acquisition Loans

The most common financing method for small business acquisitions. Up to $5 million with favorable terms and lower down payments than conventional loans.

Seller Financing

Many business sellers are willing to finance a portion of the sale price. This can reduce the amount of bank financing needed and demonstrate the seller's confidence in the business.

Conventional Bank Loans

For well-qualified buyers with strong credit, collateral, and business experience, conventional loans may offer competitive terms without SBA involvement.

ROBS (Rollover for Business Startups)

A strategy that allows you to use retirement funds to invest in a business without early withdrawal penalties or taxes. Must be structured properly with legal guidance.

Steps to Acquire a Business

1

Identify Your Target

Determine the type of business, industry, size, and location that align with your goals, experience, and financial capacity.

2

Due Diligence

Review financial statements, tax returns, leases, contracts, and operational details. Hire professionals for legal, financial, and property inspections.

3

Secure Financing

Work with an SBA-approved lender to structure the financing. Most acquisitions use a combination of SBA loan, seller financing, and buyer equity.

4

Close & Transition

Complete the purchase, transfer ownership, and execute your transition plan. Many sellers provide training and transition support as part of the deal.

Commercial Real Estate

Commercial Property Guide

Key considerations when purchasing or leasing commercial real estate in Michigan.

Retail & Storefront

High-traffic locations for retail businesses, restaurants, and service providers. Consider foot traffic, visibility, parking, and lease terms carefully.

Office Space

Professional office environments ranging from single suites to entire buildings. Evaluate location, amenities, lease flexibility, and growth potential.

Industrial & Warehouse

Manufacturing, distribution, and storage facilities. Key factors include zoning, ceiling height, loading dock access, and proximity to transportation routes.

Need Help With Your Business Real Estate Needs?

Whether you are purchasing commercial property, acquiring a business, or exploring SBA financing, we can connect you with the right professionals to get it done.

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