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Who qualifies for the loans, termed SBA 504, depends on the industry. For the most part, government rules require that the business have less than $5 million in income and fewer than 500 employees. The loans are typically for 20 years -- compared with the standard 30 years for most fixed-rate home loans
-- and come with interest rates that are slightly below market rates. It was a winner for Gary and Zell Dwelley, the husband-and-wife owners of Beach Break Cafe in Oceanside, Calif., just north of San Diego. They had leased their restaurant space for 22 years and wanted something bigger to fit the 500-odd customers who file in on Sundays for their popular coffeecakes and banana crunch French toast. "What we really felt bad about was that we only had one bathroom, which wasn't even handicapped-accessible," Zell Dwelley says. Down the street from their restaurant, a developer had refurbished an abandoned gas station with plans to rent space to Starbucks. However, the developer couldn't get Starbucks in after the 2008 financial crisis and the recession. The Dwelleys noticed that the price on the property dropped from $1.2 million before the recession to less than $700,000 in 2010. They decided to bid. The restaurant owners clinched the deal at $690,000 and scraped together everything they had for the 10 percent down payment. JPMorgan Chase financed the deal. Now the restaurant has two bathrooms, both accessible to the disabled. Commercial property prices have become very attractive, says Walter Page, a director of research at PPR, a division of CoStar Group, a commercial real estate data company. "There is an abnormal amount of opportunity now -- if people want to buy, or fix and renovate, now is the time," Page says. These loans made up just 10 percent of the overall $50 billion commercial real estate that was sold in 2011. But it's playing a part in helping stabilize prices, which rose 14 percent in 2011. The Las Vegas dentist, Cozine, kept 3,400 of the 6,600 square feet for his own office and rented the rest to a pharmacy, which is providing him extra savings. He believes that property prices will start rising again at some point. "I look at my office as a retirement nest egg," Cozine says. ___ Small Talk columnist Joyce Rosenberg will return next week.
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