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Leasing space for a new headquarters seemed like a no-brainer to the Dora brothers-until attractive interest rates caught their attention.
Despite the tepid economy, more small-business owners are taking the plunge and purchasing property instead of renting. Low interest rates are largely why, commercial lenders and real estate brokers say.
Borrowers, for instance, currently can lock in a 5.76-percent interest rate on a 20year loan through the U.S. Small Business Administration's 504 loan program.
"I've been in the commercial lending business for 23 years now, and that is an incredible rate for small-business men and women to lock in 20 years on a realestate acquisition loan," said David Amick, executive director of Premier Capital Corp.
Premier Capital and the Indiana Statewide Certified Development Corp. are the two local entities that partner with financial institutions to make the loans to established companies and distribute the federally guaranteed portion, usually no more than $1 million per transaction, for the SBA.
Through Premier Capital and Union Planters Bank, Tim and Bob Dora borrowed $684,000 to build the new headquarters for Dora Brothers Hospitality Corp. in Fishers. The 10-employee hotel developer and operator leases office space in both Anderson and Indianapolis. Looking to consolidate the two locations, the brothers chose...