Although the characteristics of the best commercial real estate (CRE) loan will be different for each business owner, many of the top CRE lenders offer financing options for multiple property types Common examples include apartment complexes, condominiums, apartments, retail stores, and office buildings. . I’ve researched multiple lenders and narrowed my top picks to the eight listed below. They have competitive rates, loan offerings, terms, and qualification requirements, so you should have no problem finding one that offers a suitable financing option for your needs.
Here are the best commercial real estate loans:
- Lendio: Best overall for multiple loan options
- RCN Capital: Best for flexible loan terms
- U.S. Bank: Best for CRE or SBA loan options
- Clarify Capital: Best for long-term SBA 7(a) financing
- 1West: Best for low credit scores
- SBG Funding: Best for short-term SBA 7(a) funding
- JPMorgan Chase: Best for experienced real estate investors
- Lima One Capital: Best for short-term loans
Best commercial real estate loans at a glance
Est. starting rates | Max. loan amount | Max. loan term | Rqd. time in business | Rqd. credit score | |
|---|---|---|---|---|---|
 | $5 million | 2 years | 650 | ||
 | 6.50% | $20 million | 30 years | None | |
 | 5% to 10% | $5 million | 25 years | 6 months | 640+ |
 | 6% | $20 million | 5 years | 2 years | 500 |
 | Prime + 2.5% | $10 million | 10 years | 2 years | 650 |
Lendio: Best overall for multiple loan options
| |
Rates & terms | |
Starting interest rate |
|
Loan amount | Up to $5 million |
Loan term |
|
Maximum LTV | 90% |
Estimated closing costs and fees | Varies based on the loan program |
Time to fund |
|
Qualifications | |
Credit score | 650 |
Time in business | 2 years |
Annual revenue | $96,000 annually for SBA loans |
DSCR | 1.25x recommended |
Why I like Lendio
Lendio is a broker with a network of over 75 lenders. With a single application, you can be matched with a variety of lending partners, which allows you to have multiple chances for approval and compare lending products that offer the best rates and loan terms suitable for your business needs. For this reason, I chose it as the overall best CRE lender for multiple loan options.
However, you may not know Lendio’s exact qualification requirements until after you apply because its partners may each have varying eligibility criteria. While Lendio does list minimum qualification requirements for both its CRE and SBA loan programs, it seems to imply that there may be some flexibility as failing to meet any of the criteria could just make it more challenging to get approved.
You can apply online on the Lendio website. The application process can be completed in under 15 minutes, and it comes at no cost and will not negatively impact your credit score. You can also find Lendio’s contact information so you can speak with a representative about any questions you may have.
RCN Capital: Best for flexible loan terms
| |
Rates & terms | |
Starting interest rate | 650 to 680, depending on loan program |
Loan amount | $50,000 to $20 million |
Loan term | Up to 30 years |
Maximum LTV | 65% to 90% |
Estimated closing costs and fees | 1% to 4% of the loan amount |
Time to fund | 10 + days |
Qualifications | |
Credit score | 650 to 680 depending on loan program |
Time in business | None |
Annual revenue | Varies |
DSCR | As low as 1.20x, but may vary |
Why I like RCN Capital
RCN Capital is a commercial lender that offers loans for business purposes. It provides some of the lowest starting rates and longest repayment terms in this guide, making it my recommendation for flexible loan terms. Loans must be backed by nonowner-occupied and commercial properties and be issued to a business entity.
The provider offers several different types of loans depending on your needs, including the following:
- Fix and flip loans
- Long-term rental loans
- Multifamily loans
- New construction loans
- Investor rental portfolio loans
Depending on the loan program you choose, options may also be available for purchases, rate and term refinances, and cash-out refinances. Rates, requirements, and terms will vary per loan program, so be sure to determine which loan type is best for you before proceeding with an application.
Businesses that work with RCN Capital will not typically have to pay any upfront fees during the preapproval or approval process. Some exceptions may apply, such as third-party fees for things like appraisals, environmental studies, or other project feasibility reports, which would need to be paid upfront by the borrower.
To apply, visit the RCN Capital website to complete an online application.
U.S. Bank: Best for CRE or SBA loan options
Rates & terms | |
Starting interest rate | Estimated 6.99% |
Loan amount |
|
Loan term | Up to 25 years |
Maximum LTV | 80% to 90% |
Estimated closing costs and fees | 2% to 4% of loan amount |
Time to fund | 30 to 45 days (Up to 90 days for SBA loans) |
Qualifications | |
Credit score | 700 recommended |
Time in business | 2 years recommended |
Annual revenue | None |
DSCR | 1.25x recommended |
Why I like U.S. Bank
U.S. Bank is ideal for borrowers looking for either SBA or CRE loans because of the combination of its rates and terms. Business owners should be aware, however, that U.S. Bank has strict qualification requirements as it typically requires good credit and strong finances to get approved.
Although you can visit its website for general information on its loan programs, most borrowers will need to call, submit an application, or schedule an appointment to get more details about available rates and qualification requirements. The representatives the Fit Small Business team spoke to stated that some programs may have flexibility in underwriting, so you may still be encouraged to apply even if you don’t meet the recommended qualifications stated in the table above.
Borrowers interested in getting an SBA loan should know that U.S. Bank is an SBA Preferred Lender. Preferred Lenders can make final credit decisions on behalf of the SBA, reducing turn times needed for a separate set of approvals and allowing you to get funding more quickly compared with other lenders.
Unlike some providers, U.S. Bank does not have an online application process for these loans. Instead, borrowers can schedule an appointment via the website or request a call to discuss the next steps.
Clarify Capital: Best for long-term SBA 7(a) financing
| |
Rates & terms | |
Starting interest rate | 5% to 10% on average |
Loan amount | Up to $5 million |
Loan term | Up to 25 years |
Maximum LTV | 90% |
Estimated closing costs and fees | Not stated |
Time to fund | 3 weeks |
Qualifications | |
Credit score | 640+ |
Time in business | 6 months |
Annual revenue | $120,000 |
DSCR | 1.25x recommended |
Why I like Clarify Capital
Clarify Capital offers SBA 7(a) funding for up to 25 years if used for real estate. A 7(a) loan is backed by the government, and because of this, it can offer some of the most competitive rates available. One of the downsides of this type of financing, however, is that it can take a long time to fund and involves a large amount of paperwork to get approved and funded.
If you choose to work with Clarify Capital, you’ll have a dedicated advisor to walk you through the process and even assist with the paperwork. As a broker with over 75 different lenders in its network, you’ll also get assistance with being matched to a lender that can offer the most competitive rates and terms you’re eligible for.
The process can be started by visiting the Clarify Capital website. There, you can complete an online application in under two minutes, after which a dedicated advisor will contact you to discuss the next steps. Submitting a loan application will not impact your credit score and carries no fees or obligation to accept a loan offer.
1West: Best for low credit scores
| |
Rates & terms | |
Starting interest rate | 6% |
Loan amount | $100,000 to $20 million |
Loan term | 6 months to 5 years |
Maximum LTV | 80% |
Estimated closing costs and fees | not stated |
Time to fund | 2 to 3 weeks |
Qualifications | |
Credit score | 500 |
Time in business | 2 years |
Annual revenue | Varies |
DSCR | Not stated |
Why I like 1West
Similar to Lendio, 1West is a loan broker with over 50 lenders in its network. Although it has similar starting rates to RCN Capital, it has the lowest credit score requirements in this guide, making it a good option if you’re seeking financing and your business credit score is less than ideal.
Its CRE loans are available in all 50 states and can be used for the purchase, renovation, or expansion of a new or existing commercial property. It commonly deals with businesses that need funding for offices, retail spaces, hotels, and apartments. CRE loans can be made to several business entities, including partnerships, developers, trusts, corporations, and real estate investment trusts (REITs).
With 1West, you also have the option to get funding with no minimum gross sale requirement. Loans can also be issued in either a 1st or 2nd lien position and interest-only options are available if you want to have lower monthly payments.
To learn more or to submit a loan application, visit the 1West website.
SBG Funding: Best for short-term SBA 7(a) funding
 | |
Rates & terms | |
Starting interest rate | Prime + 2.5% |
Loan amount | Up to $10 million |
Loan term | 2 to 10 years |
Maximum LTV | 90% |
Estimated closing costs and fees | Not stated |
Time to fund | Up to 3 months |
Qualifications | |
Credit score | 650 |
Time in business | 2 years |
Annual revenue | Not stated |
DSCR | Not stated |
Why I Like SBG Funding
Many SBA 7(a) lenders only offer $5 million as a maximum loan amount. SBG Funding, however, offers up to $10 million, making it a good option if you need large financing amounts. Additionally, you won’t have to worry about prepayment penalties, which gives you the option to refinance or otherwise pay off the loan earlier without incurring additional costs.
Funds from an SBG Funding SBA 7(a) loan can be used for almost any business purpose. In addition to real estate needs such as purchasing a new building, you can use funds for working capital, refinancing debt, and acquiring additional inventory. Qualification requirements are somewhat flexible, but you’ll improve your approval odds if you can demonstrate low debt, good cash flow, and a history of being profitable.
To learn more or to apply, you can visit the SBG Funding website. There, you can complete an online application in under 10 minutes and contact one of its Relationship Managers if you have any questions throughout the process.
JPMorgan Chase: Best for experienced real estate investors
 | |
Rates & terms | |
Starting interest rate | Estimated 7% and up |
Loan amount | $50,000 to at least $25 million |
Loan term | Up to 25 years |
Maximum LTV | 90% |
Estimated closing costs and fees | Not stated |
Time to fund | 30 to 45 days |
Qualifications | |
Credit score | Undisclosed |
Time in business | 2 years recommended |
Annual revenue | Varies |
DSCR | 1.25× recommended |
Why I like JPMorgan Chase
CRE financing is available through several programs by JPMorgan Chase. Its Commercial Term Lending unit offers two main programs, and the company also provides loans to small businesses. Each has a different target audience, as summarized below, but regardless of which one you choose, I recommend this provider for experienced investors due to its higher qualification requirements.
- Multifamily lending: Loans from $500,000 to $25 million+ for financing stabilized apartment buildings with 5+ units.
- Commercial mortgage lending: Loans starting at $1 million for financing stabilized industrial, office, retail, and mixed-use properties.
- Commercial real estate financing for small businesses: Conventional and SBA financing with loan amounts starting at $50,000 for commercial buildings
One downside is that financing may not be available in all 50 states. For this provider’s multifamily and commercial mortgage lending units, it currently offers financing in just 13 major US markets. For its small business lending unit, you’ll need to speak with a lending representative to determine financing availability in your region.
If you’re interested in applying or learning more, visit the JPMorgan Chase website.
Lima One Capital: Best for short-term loans
 | |
Rates & terms | |
Starting interest rate | 6.65% and up |
Loan amount | Up to $10 million |
Loan term | Varies |
Maximum LTV | 80% |
Estimated closing costs and fees | Undisclosed |
Time to fund | 1 to 3 weeks |
Qualifications | |
Credit score | Varies based on the loan program |
Time in business | Varies based on the loan program |
Annual revenue | Varies based on the loan program |
DSCR | 1.25x recommended |
Why I like Lima One Capital
Lima One Capital offers multiple commercial lending programs with repayment terms under 24 months, making it a good option for short-term financing for investors. Its four main programs are
- Fix and flip: Lima One Capital’s fix-and-flip programs are well-suited for investors looking to retain long-term ownership of a property after completing repairs and those intending to sell it for a profit.
- Bridge: Its basic bridge financing product is geared toward those who need funds quickly or need to acquire a property on an expedited timeline.
- Construction: This is separated into a standard construction program to finance costs associated with vertical construction and a build-to-rent program consisting of an initial temporary construction loan and a subsequent permanent rental loan.
- Rental: This is available for single-family rentals, short-term rentals, and rental portfolios.
Since each program has varying rates, terms, and eligibility criteria, it’s best to speak with a lending specialist to determine the best one for your needs. Depending on the program you choose, you could take advantage of things like flexible prepayment penalties, waiver of personal income requirements, origination fee discounts or deferrals, and more.
To apply or learn more, visit the Lima One Capital website.
How I chose the best commercial real estate lenders
My selection of the best commercial real estate lenders was based on the following criteria:
- Interest rates (check out our guide on what impacts CRE rates)
- Loan terms and repayment options
- Maximum loan amount
- Qualification requirements
- Down payment requirements
- Ease of application
- Application, approval, and funding speed
- Customer reviews and ratings
Choosing the best commercial real estate lender
When choosing the best commercial real estate lender, you’ll want to consider a few factors to ensure you work with one that fits your budget and business needs. Keep the following in mind when shopping around for a lender:
Alternatives to a commercial real estate loan
For borrowers unable to obtain a traditional CRE loan, there are other options to help finance a CRE investment. If you don’t meet the necessary criteria or are simply exploring all of your financing options, consider the following alternatives:
- Hard money loans: Hard money loans can provide short-term financing solutions that typically require repayment within two to three years. This can allow you to acquire a property now and give you time to improve your business finances or credit to replace it with a permanent source of financing in the future. Check out our guide on the best hard money lenders to learn more or find a provider.
- Loans from friends and family: For those with limited resources or credit history, borrowing funds from friends and family can be a good option for businesses wanting to be able to negotiate the terms of a loan in a less formal way. Read our article on how to raise money from friends and family to learn more about using this method to obtain funding.
- Rollover for business startups (ROBS): A ROBS isn’t a loan but instead a way to access your retirement accounts tax- and penalty-free. You’ll typically need a minimum investment of $50,000, and I recommend referencing our guide on the best ROBS providers to help you through the process to avoid compliance issues, fines, or penalties.
Before you apply for financing, see our guide on how to get a small business loan. It also includes tips on what to expect after applying.
Frequently Asked Questions (FAQs)
Qualification requirements will vary depending on the commercial real estate loan type and the lender facilitating the transaction. Generally speaking, these loans can have stricter documentation and qualification requirements in comparison with other business loans. You’ll need to prove the creditworthiness of your business, inclusive of a strong credit score and annual revenue, and that you can provide a down payment of anywhere from 10% to 30%.
Rates can range from around 4% to 11%, depending on your financing needs. This will depend on the type of CRE loan you’re getting, the lender you decide to work with, as well as your own business qualifications.
Depending on the type of loan, most commercial real estate loans can range anywhere from a few months to many years. For short-term investments, this can range anywhere from 12 to 36 months. For long-term investments, repayment terms generally run 10 to 30 years.
Bottom line
The best commercial real estate lenders should provide loan offerings applicable to your real estate investment needs, inclusive of favorable rates and terms and flexible qualification requirements. The CRE lenders I’ve selected offer a wide range of loan types, so be sure to shop around and consider all of your financing options before making a decision.
