6 Best Commercial Real Estate Loans for 2023

Our decision to choose US Bank as the best overall CRE lender was because of its combination of competitive rates, long repayment terms, and financing amounts offered. Although other lenders may advertise more competitive rates or loan terms, it often requires a business to exceed the stated minimum qualification requirements by a significant amount.

US Bank’s qualification requirements are strict, but it means you’ll have a stronger chance of getting approved for competitive rates. In addition to a 20% down payment, you’ll need a credit score of 700 and at least two years’ time in business. A DSCR of 1.25x is also required. However, it should also be noted that US Bank does have flexibility in its underwriting process, so the exact requirements can vary depending on the details of your business.

In addition to its standard commercial real estate loan product, US Bank also offers SBA 7(a) and SBA 504 real estate loans. As a preferred SBA lender, this provider has the authority to make final credit decisions on behalf of the SBA, so these loans tend to be funded more quickly.

A potential downside of this lender is the fact that it only has branch locations in 26 states, so it may not be able to lend nationwide. Before you get too far into the loan process, you should ask a lending representative if they are licensed to lend in your location.

To start the application process, you can visit the lender’s website and provide your contact information for a callback. You can also schedule a virtual or in person appointment.

If you’re looking to obtain an apartment building with five or more units, JPMorgan Chase’s commercial term lending can provide competitive rates, flexible loan terms, and low fees.

Well-qualified businesses can expect to see rates start as low as 7%. Fixed-rate loans are available for terms up to 15 years. If you are comfortable with a balloon payment, you can also choose to have it amortized for up to 30 years. Adjustable-rate loans are also offered, with initial fixed rates for three, five, seven, and 10 years. Subsequent rate adjustments will then occur every six months.

If you want to lower your monthly payments even further, you can ask for interest-only financing. This is offered on a case-by-case basis for up to three years and requires a minimum loan amount of $1 million. Depending on your business qualifications, you may be required to provide a personal guarantee for the loan.

JPMorgan Chase also provides commercial mortgage lending for other types of properties, such as industrial, office, retail, and mixed use properties, although the terms and qualification requirements may vary.

One downside with this provider is that it currently only offers multifamily lending in 13 major United States markets. So, if you’re interested in applying with this lender, we recommend that you first ask if financing is available for your location.

Lendio has a minimum credit score requirement of 600. That’s the lowest on our list, making it a good option if you have blemishes on your credit report. It also offers loan terms of up to 25 years—that’s longer than many other providers, which can help lower your minimum monthly payments.

In addition to offering commercial mortgage and real estate loans, Lendio also has SBA 7(a) and SBA 504 loans. SBA 504 loans can be used to acquire fixed assets such as land or buildings as long as it also promotes job creation and business growth. The more common SBA 7(a) loan can be used to purchase land, building, or other real estate.

Lendio has a network of more than 75 lenders. The benefit is that it can increase your chances of finding a lender whose eligibility criteria you can meet. The downside is that it can be difficult to know your exact loan terms and qualification requirements until after you apply. For example, while it is possible to qualify for an SBA 7(a) loan below $350,000 with no down payment requirement, having a 10% down payment can significantly improve your chances of getting approved.

Rates can also fluctuate and the latest information may not always be reflected on the company website, so you should verify with a loan specialist to see what is currently being offered. You can get this information by calling the company’s toll-free number or by submitting an application online.

Online applications can be completed in less than 15 minutes, after which you will be paired with a funding specialist to discuss the details of your loan. The funding specialist can be your main point of contact to discuss your business needs, goals, and loan options.

Funding Circle is another provider offering SBA 7(a) loans. Although it has the highest revenue requirement in this guide, it made our list because qualifying businesses can get competitive rates, excellent customer service, and potentially a faster funding time than most SBA lenders.

SBA 7(a) loans typically take one to two months to fund. However, Funding Circle states that its applicants can receive funding as much as two weeks faster due to the relationship and expertise with its lending partner.

To get a loan with Funding Circle, businesses will need revenue of at least $400,000 annually and two years’ time in business. The recommended credit score is 650, although it’s possible to qualify with a score as low as 600. To determine your credit score eligibility, this provider requires a 630 weighted average. If there are multiple owners, a 600 credit score is acceptable if the weighted average of all owners is 650.

Funding Circle provides a list of some of the documents it will need from you, including three years of tax returns, financial statements, and documentation on business debts. To ensure a streamlined process, you can obtain these items before you apply. You can also read our guide on how to get an SBA loan for more tips.

SBG Funding is a good choice if you’re looking to get financing for the purchase of a new building or expansion of existing facilities for your business. We also named it one of the best business loan brokers, specifically for SBA loans, so although rates may be higher than other lenders, you should have a good chance of getting approved if you meet the minimum requirements.

The provider offers a maximum repayment term of 10 years—that’s shorter than the 25-year term that some SBA lenders have, so your monthly payments can be higher. However, the shorter loan term can help you save more money on interest fees over the long run. There are also no prepayment penalties, so you can save additional money with an early payoff.

SBG Funding reviews applications on a case-by-case basis, so it’s difficult to know the exact criteria you’ll need to meet. Qualification requirements such as the required down payment can vary depending on an overall review of your business finances. However, it’s recommended that you have at least 10% available for a down payment. You’ll also need a credit score of 650, two years’ time in business to qualify, and a property that will be at least 51% owner-occupied.

If this lender sounds like it could be a good fit for you, applications can be submitted online using only a soft credit check that has no impact on your credit score. Hard credit checks are only done if you like the options you’re given. The application process should take no more than 10 to 15 minutes to complete.

PNC Bank offers a small business CRE loan that can be used to purchase or refinance an owner-occupied commercial property. The provider has strict qualification requirements but, if you qualify, you can get competitive rates.

PNC’s rates, like many other lenders, can fluctuate over time. However, you can currently expect rates as low as 6.5%. Some qualification requirements may also vary because this provider considers multiple aspects of a business to determine its overall risk. Eligibility criteria generally are strict, however, and it’s recommended that you have a credit score over 700 with at least three years’ time in business.

If you choose this lender for a CRE loan, you can choose a term of up to 15 years with a 25-year amortization. This means that your loan will have a balloon payment, which is something you won’t find on an SBA loan. However, it can be beneficial because it can give you lower monthly payments—you’ll just need to plan for how you’ll make the balloon payment at the end of the loan term.

PNC Bank doesn’t provide an online application, although you can complete an online form to request a callback. To apply, you can visit a physical branch or call during the provider’s normal business hours.