More small businesses purchase office properties

Small businesses are purchasing office space due to a government loan.

Some property management companies may have seen an influx of small businesses interested in an office purchase, as a government program allows companies to finance these transactions more easily, The Associated Press reported.

The Small Business Administration offers the SBA 504 loan program, which can help these businesses get property on their own. While it has been around since 1959, it was not significantly used until the recession ended, according to the news source. The figure has increased by more than 15 percent each year since 2009, and totaled $4.45 billion in 2012.

"Cash is a security blanket for small businesses, and they would be scared to put a big check down now," George Smith, head of business banking at Bank of America, told the news source.

The loans are for companies with 500 employees or fewer and less than $500 million in total income. In addition, the loans are for 20-year periods, and have lower rates than the standard market level, the news source added. Only 10 percent of commercial real estate loans were SBA 504s during 2010, but this ratio increased to 14 percent last year.

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