Discovery Gateway Spectrum units may be purchased with 90%
financing (10% down payment) using Small Business
Administration (SBA) financing. The SBA financing program was
created by the United States Congress to stimulate business
and to give small companies an opportunity to own their own real
estate. More than 90% of U.S. small businesses qualify for
SBA financing.

There are two SBA loan programs available to Discovery
Gateway Spectrum buyers, the 504 and the 7a.

The SBA 504 program combines a conventional first deed of
trust from a local lender for 50% of the purchase price with
SBA financing secured by a second trust deed in the amount
of 40% of the purchase price (total – 90% financing). The
buyer invests 10% in cash equity and pays the loan fees
and closing costs. Currently, interest rates are quite favorable
and, of course, real estate owners may be able to deduct
depreciation from their taxes.

Here’s a quick description of the two relevant SBA financing
programs:

SBA 504:

• Fixed rate financing.
• 10% cash down - compared to 25% to 30% for conventional
real estate financing
• 20-year fully amortized - compared to 5 to 7 year terms with
many lenders
• Only 51% occupancy by owner / borrower required.

SBA 7a Program:

• Loan is from a single source, typically a local bank
• Adjustable rate usually tied to the prime lending rate
• 10% cash down - compared to 25% to 30% for conventional
real estate financing
• 25-year fully amortized - compared to 5 to 7 year terms with
many lenders
• The 7a program is a multi-purpose loan that can provide
financing for real estate purchases, interior improvements,
equipment purchases and working capital

SBA 7a Program:

• You can borrow 90% of the purchase price of your DISCOVERY
GATEWAY SPECTRUM property plus up to 90% of any custom
interior improvements that you may need.
• Receive all tax benefits offered to owners of real estate including
annual depreciation.
• Realize the benefits of any appreciation in the value of the unit.