A commercial real estate loan is most commonly used to purchase and/or renovate an owner-occupied commercial property. Commercial real estate loans typically cost 1% to 5% upfront and 5% to 12% per year in interest. Commercial mortgages are used to finance commercial real estate for mixed-use buildings, retail centers, and office buildings.
For commercial real estate loans up to $5 million, an SBA 7(a) loan can often offer longer repayment terms than other commercial real estate loan options. SmartBiz is one of the top SBA lenders nationally, offering an online application process and funding as quickly as 30 days.
What a Commercial Real Estate Loan Is
A commercial real estate loan is a loan from a bank or other lender for the purpose of purchasing, constructing, or rehabilitating a commercial property. Commercial real estate is property that is used for business purposes (e.g., office space, warehouses, production facilities) rather than as residential property.
Some lenders will provide financing for mixed-use properties—those with both commercial and residential space—though most will still require that the property be at least 51% owner-occupied. A commercial mortgage is filed in conjunction with a commercial real estate loan in order to protect the lender in the event the borrower defaults on its loan obligations.
Who Commercial Mortgages Are Right For
Commercial mortgages can be used by real estate investors and small business owners to purchase and/or rehabilitate commercial property. According to a National Association of Realtors report, the average small business commercial real estate mortgage is about $1.2 million in 2019. These commercial real estate loans can allow a business to expand through the acquisition of additional commercial property.
How Commercial Real Estate Loans Work
In general, a commercial real estate loan works in the same manner as a typical installment loan. However, the exact mechanics of commercial mortgages vary depending on the type of loan. While some loans are fully amortizing and are repaid with monthly principal and interest payments, others have interest-only payments with the balloon principal payment at the end of the loan term.
Regardless of the term and method of repayment, commercial real estate loans are a form of asset-based lending and are secured by commercial mortgages that use the real estate as collateral for the loan. In the event the borrower defaults on the loan, the lender can assume ownership of the property in lieu of the remaining debt owed.
5 Types Of Commercial Real Estate Loans
There are five types of commercial real estate loans: SBA 7(a) loans, CDC/SBA 504 loans, traditional commercial real estate mortgages, commercial bridge loans, and commercial hard money loans. Each type of loan has specific terms and qualifications making them suitable for a variety of commercial property needs.
Types of Commercial Real Estate Loans
Loan Type | Best For |
|---|---|
Long-term commercial real estate loan up to $5 million | |
Commercial real estate loans no maximum loan amount | |
Commercial real estate loans no maximum loan amount | |
Short-term commercial real estate financing | |
Bad credit option for short-term renovation financing |
The five types of commercial real estate loans are:
1. SBA 7(a) Loan For Commercial Real Estate
The U.S. Small Business Administration (SBA) offers commercial mortgages backed by the SBA through its SBA 7(a) loan program. SBA 7(a) loans are the most common type of SBA loans and they help businesses purchase or refinance owner-occupied commercial properties up to $5 million as well as providing the opportunity to borrow funds for working capital needs.
SBA 7(a) Loan for Commercial Real Estate: Costs, Terms, Qualifications
SBA 7(a) Loan for Commercial Real Estate | |
|---|---|
Maximum Loan Amount | $5 Million |
Minimum Down Payment | 10% to 20% |
Interest Rates | 7.5% to 10% |
SBA Guarantee Fee | 2% to 3.75% (of guaranteed portion) |
Closing Costs | 2% to 5% |
Maximum Loan Term | 25 Years |
Time to Approval / Funding | 60 to 90 Days |
Minimum Credit Score | 680 |
Years in Business | 2 Years |
Debt-Service Coverage Ratio | 1.25x or greater |
Owner-Occupancy Requirement | At least 51% |
SBA 7(a) Loan Amount & Down Payment
An SBA 7(a) loan for commercial real estate typically allows for financing of 80% to 90% of a commercial property’s purchase price. This means that you should be prepared to have a down payment equal to 10% to 20% of the purchase price. The maximum loan amount of SBA 7(a) loans is $5 million.
SBA 7(a) Interest Rates & Fees
The maximum interest rate on SBA 7(a) loans ranges from 7.5% to 10%. These SBA loan rates are capped by the Small Business Administration and are tied to the prime rate. SBA 7(a) loans can have fixed or variable interest rates, making it important for borrowers to verify with their lender the type of rate they are receiving.
The rates and fees typically associated with an SBA 7(a) loan include:
- Interest rate: 7.5% to 10%
- SBA guarantee fee: 2% to 3.75%
- Closing costs: 2% to 5%
- Appraisal fee: $2,000 to $4,000
- Prepayment fee: 0% to 5%
The SBA guarantee fee, closing costs, and appraisal fees are typically taken directly out of the loan and don’t come out of pocket. Additionally, you may be charged a prepayment penalty if you pay off more than 25% of the loan within the first three years. However, prepayment penalties are dependent on the lender, and the allowable charge decreases from 5% in the first year, to 3% in the second year, and 1% in the third year.
SBA 7(a) Loan Repayment Terms
The repayment term of an SBA 7(a) loan for commercial real estate can extend up to 25 years. Payments made on a monthly basis and are fully amortized over the repayment term of the loan. The standard time for approval and funding is between 60 to 90 days.
The typical repayment terms for an SBA 7(a) loan for commercial real estate are:
- Repayment term: Up to 25 years
- Payment type: Monthly principal and interest payments
- Time to approval/funding: 60 to 90 days
SBA 7(a) Loan Qualifications
The Small Business Administration sets basic qualification requirements for SBA loans, and allows lenders to set their own eligibility requirements beyond those specifications. Determining factors such as credit score, time in business, and annual revenue requirements are set by the lender, and therefore may vary.
In general, you should expect to meet the following basic requirements before applying for an SBA 7(a) loan:
- Minimum credit score: 680
- Time in business: At least two years
- Debt service coverage ratio: 1.25x or greater
- Owner-occupancy requirement: At least 51%
If you are seeking financing to construct a commercial property, your business will also be required to occupy 60% of the building upon completion, and have plans to occupy up to 80% of the space within a time period specified in your loan agreement.
Who SBA 7(a) Loans Are Right For
SBA 7(a) loans are long-term loans, making them a good fit for buy-and-hold investors. These loans are designed to help businesses that are unable to obtain credit elsewhere. The SBA loan application process can be daunting, so before applying you will want to review the SBA loan qualification requirements to ensure that your business is eligible.
Where To Get an SBA 7(a) Loan
SBA 7(a) loans can be obtained through any SBA-approved lender. These lenders range from larger traditional banks to smaller credit unions and private lenders. If you have a prior relationship with a bank or credit union, it’s best to check with them first to see if they’re approved to make SBA loans.
Working with an experienced SBA lender, like SmartBiz, can make the SBA loan process go more smoothly for you as the borrower. If you’ve been in business for three years or more, you can apply online and get expert guidance from one of their Loan Relationship Managers. You’ll then receive a non-binding letter of intent that you can use to negotiate terms with your seller or existing lender.
2. CDC/SBA 504 Loan For Commercial Real Estate
A CDC/SBA 504 loan for commercial real estate is backed by the U.S. Small Business Administration. CDC/SBA 504 loans help new and existing businesses purchase or refinance an owner-occupied commercial property. A CDC/SBA 504 loan is comprised of two loans, one from a Certified Development Corporation (CDC) and one from a traditional lender. The maximum loan amount for CDC/SBA 504 loans is $14 million.
CDC/SBA 504 Loan for Commercial Real Estate: Costs, Terms, Qualifications
CDC / SBA 504 Loan for Commercial Real Estate | |
|---|---|
Maximum Loan Amount | $14 million |
Minimum Down Payment | 10% to 20% |
Interest Rates | 4.5% to 6% on CDC loan 5% to 12% on bank loan |
SBA Guarantee Fee | Approximately 1% |
CDC Processing Fee | 1% to 2% (on CDC portion) |
Closing Costs | 2% to 5% |
Typical Loan Term | 20 Years |
Time to Approval / Funding | 60 to 90 Days |
Minimum Credit Score | 680 |
Years in Business | At least 2 years |
Debt-Service Coverage Ratio | 1.25x or greater |
Owner-Occupancy Requirement | At least 51% |
CDC / SBA 504 Loan Amount & Down Payment
CDC / SBA 504 loans for commercial real estate typically provide financing for up to 90% of the purchase price of the property. This means that you should anticipate having a down payment of at least 10% of the purchase price. The maximum loan amount for a CDC / SBA 504 loan is $14 million.
It’s important to note that a CDC/SBA 504 loan is actually financed by two parties:
- A traditional bank or lending institution
- A Certified Development Company (CDC)
This results in the business having two loans financing its commercial property. The first loan is financed by an approved bank for up to 50% of the purchase price. The second loan is financed by a certified development company (CDC) for up to 40% of the purchase price. The remaining 10% is supplied by the borrower in the form of a down payment.
CDC/SBA 504 Interest Rates & Fees
CDC/SBA 504 loans for commercial real estate typically have overall interest rates between 4.5% to 6%. Interest rates are typically fixed and payments are fully amortized throughout the loan term. Rates are calculated as an increment above the current five- and 10-year U.S. treasury yields.
The typical rates and fees for a CDC/SBA 504 loan are:
- Interest rate (CDC): 4.5% to 6%
- Interest rate (Bank): 5% to 12%
- SBA guarantee fee: Approximately 1%
- CDC processing fee: 1% to 2%% (only assessed on the CDC portion of loan)
- Appraisal fee: $2,000 to $4,000
The guarantee fee, CDC processing fee and appraisal fee are typically taken directly out of the loan. Additionally, the CDC portion of a CDC/SBA 504 loan has prepayment penalties that start at roughly 2.9% of the loan amount and decrease annually for the first 10 years of the loan. There are no prepayment penalties on the CDC loan after 10 years. Prepayment penalties with the bank portion of the loan are determined by the lender.
CDC/SBA 504 Loan Terms
The typical loan term of a CDC/504 loan for commercial real estate is 20 years, and consists of fully amortizing principal and interest payments. Similar to SBA 7(a) loans, the typical time to funding for CDC/504 loans is typically between 60 to 90 days.
The typical repayment terms for a CDC/504 loan for commercial real estate are:
- Repayment term: Up to 20 years
- Payment type: Monthly principal and interest payments
- Time to approval/funding: 60 to 90 days
CDC / SBA 504 Loan Qualifications
CDC / 504 loans for commercial real estate follow SBA qualification guidelines, which include:
- Minimum credit score: 680
- Time in business: At least two years
- Debt service coverage ratio: 1.25x or greater
- Minimum owner-occupancy requirement: 51%
Similar to SBA 7(a) loans, if you’re financing new construction, your business must occupy at least 60% of the commercial space upon completion. You will also need to have plans to eventually occupy as much as 80% of the property.
Further, CDC / 504 loans have the following unique requirements:
- The company’s net average income must be less than $5 million for the previous two years
- The company cannot have a tangible net worth greater than $15 million
- The loan amount cannot be more than the personal assets of the business owner
- To qualify for a CDC/504 loan, businesses must create or retain at least one job for every $65,000 issued
Who CDC/SBA 504 Loans Are Right For
CDC/SBA 504 loans offer some of the lowest down payment requirements of the various types of commercial real estate loans. These permanent loans are therefore best for growing companies that might not have more than 10% to use as a down payment.
Where To Get A CDC/SBA 504 Loan
As with SBA 7(a) loans, CDC/SBA 504 loans can be obtained through SBA-approved traditional banks, credit unions, and private lenders. If you already use a bank or credit union for your business needs, you can check to see if they’re approved to lend an SBA 504 loan.
Live Oak Bank is a national commercial real estate lender that specializes in CDC/504 loans, and offers loans of $1 million to $14 million. Working with an experienced lender can make the process less cumbersome for you as the borrower. Contact Live Oak Bank to begin the CDC/504 loan process.
3. Traditional Commercial Mortgage
A traditional commercial mortgage is a standard commercial loan issued by a bank or lending institution and not backed by the federal government. Traditional commercial mortgages can be used to purchase or refinance real estate such as owner-occupied office buildings, retail centers, shopping centers, industrial warehouses, and other commercial properties.
Traditional Commercial Mortgage: Costs, Terms, Qualifications
Traditional Commercial Mortgage | |
|---|---|
Maximum Loan Amount | 65% to 85% Loan-to-Value (LTV) |
Minimum Down Payment | 15% to 35% |
Interest Rates | 5% to 7% |
Origination Fees | 0% to 1% |
Closing Costs | 2% to 5% |
Typical Loan Term | 5 to 20 Years |
Time to Approval / Funding | 30 to 45 Days |
Minimum Credit Score | 700 |
Years in Business | 1 to 5 years |
Debt-Service Coverage Ratio | 1.25x or greater |
Owner-Occupancy Requirement | At least 51% |
Traditional Commercial Mortgage Amount & Down Payment
A traditional commercial mortgage typically offers a maximum loan amount ranging from 65% to 85% of a property’s loan-to-value (LTV) ratio. The LTV ratio represents the fair market value of a property before purchasing. This means that borrowers should expect to cover 15% to 35% of the property’s fair market value as the down payment.
There is no maximum loan amount with a traditional commercial mortgage. This is because these mortgages aren’t backed by the federal government and overall loan amounts are up to individual lenders.
Traditional Commercial Mortgage Interest Rates & Fees
Traditional commercial mortgages typically have commercial real estate loan interest rates between 5% to 7%. Monthly payments are fully amortized over the term of the loan. In addition to interest, other fees on traditional commercial mortgages include lender origination fees, closing costs, and appraisal fees.
The typical rates and fees for traditional commercial mortgages are:
- Interest rate: 5% to 7%
- Origination fees: 0% to 1%
- Closing costs: 2% to 5%
- Appraisal fee: $2,000 to $4,000
Traditional commercial real estate loans may have prepayment penalties. Any prepayment penalties or fees assessed are at the discretion of the lender.
Traditional Commercial Mortgage Terms
The repayment term of a traditional commercial mortgage can from range five to 20 years. Payments are fully amortized over the life of the loan. In general, the time to approval and funding with a traditional lender is between 30 and 45 days.
The typical repayment terms for a traditional commercial mortgage are:
- Repayment term: Up to 20 years
- Payment type: Monthly principal and interest payments
- Time to approval/funding: 30 to 45 days
Traditional Commercial Mortgage Qualifications
The qualifications for a traditional commercial mortgage are a little more restrictive than with a government-backed loan. This is because the lender assumes the full risk of the loan without the insurance provided by a government guarantee.
When applying for a traditional commercial mortgage, you should expect to have the following:
- Minimum credit score: 700
- Time in business: At least one year (will vary by lender)
- Debt service coverage ratio: 1.25x or greater
- Minimum owner-occupancy requirement: 51%
Who Traditional Commercial Mortgages Are Right For
Traditional commercial mortgages have comparatively higher qualifications for approval but lower interest rates. This means that prime borrowers or business owners with credit scores of 700 or greater should look into traditional commercial mortgages. Remember that these mortgages are permanent, although it’s possible to get one with a term as short as five years.
Where To Get A Traditional Commercial Mortgage
Traditional commercial mortgages are issued by traditional banks and lending institutions. These mortgages are often held on the balance sheet of a traditional bank as an investment. U.S. Bank is a traditional bank that offers commercial real estate loans.
4. Commercial Bridge Loan
A commercial bridge loan is a short-term real estate loan used to purchase owner-occupied commercial property before refinancing to a long-term mortgage at a later date. Commercial bridge loans are issued by traditional banks and lending institutions and help borrowers compete with all-cash buyers.
Commercial Bridge Loan | |
|---|---|
Loan Amount | $2 Million to $20 million |
Minimum Down Payment | 10% to 20% of Loan-to-Value (LTV) |
Starting Interest Rates | 8% to 12% |
Loan Origination Fees | 2% to 6% |
Closing Costs | 2% to 5% |
Exit Fee | 1% |
Typical Loan Term | 6 Months to 36 Months |
Time to Approval / Funding | 15 to 45 Days |
Minimum Credit Score | 650 |
Debt service coverage ratio | 1.10x or greater |
Prior Commercial Projects | 1 to 3 |
Commercial Bridge Loan Amount & Down Payment
Commercial bridge loans typically have a maximum loan amount equal to 80% to 90% of a property’s loan-to-value (LTV) ratio. This means that a traditional bank or lending institution will lend up to 90% of a property’s current fair market value. The remaining 10% to 20% is covered by the borrower as a down payment.
Commercial Bridge Loan Interest Rates & Fees
The interest rates on a commercial bridge loan typically range from 6.5% to 9% or more. Monthly payments on a commercial bridge loan are typically interest-only, with the full amount of principal repaid at the end of the term.
In general, the typical rates and fees for commercial bridge loans are:
- Interest rate: 8% to 12%
- Loan origination fee: 2% to 6%
- Closing costs: 2% to 5%
- Exit fee: 1%
- Appraisal fee: $2,000 to $4,000
These fees are typically taken directly out of the loan proceeds and do not need to be paid in advance of receiving the loan. Due to the short-term, traditional banks may charge a prepayment penalty on a commercial bridge loan; however, this is at the discretion of the lender.
Commercial Bridge Loan Terms
Commercial bridge loans typically have repayment terms that range from six months to 36 months. This allows borrowers to use commercial bridge loans to purchase an owner-occupied commercial property with the intent of refinancing with a long-term loan at a later date. The time to approval and funding is typically between 15 and 45 days. The speed of funding helps borrowers compete with all-cash buyers and close on transactions quickly.
The typical repayment terms for a commercial bridge loan are:
- Repayment term: Six to 36 months
- Payment type: Monthly interest payments with a balloon payment due at end of term
- Time to approval/funding: 15 to 45 days
Commercial Bridge Loan Qualifications
The qualification requirements for a commercial bridge loan are less restrictive than longer-term loan options like SBA 7(a) loans or traditional commercial mortgages. In general, you will need to have a personal credit score of 650 or greater, a DSCR of 1.1x or greater, and prior experience with commercial real estate transactions.
Borrowers should expect to meet the following requirements when applying for a commercial bridge loan:
- Minimum credit score: 650
- Debt service coverage ratio: 1.10x or greater
- Prior experience required: One to three projects
Prior commercial real estate experience requirements vary by lender. However, banks will typically want to see that you’ve previously financed a commercial property using a short-term financing option.
Who Commercial Bridge Loans Are Right For
Commercial bridge loans are best for short-term investors looking to renovate and sell a property or long-term investors looking to renovate a building before refinancing to a permanent mortgage. Many commercial bridge loans can be used for construction financing and therefore make this type of loan a good option for businesses or investors that need to rehabilitate a property.
Where To Get A Commercial Bridge Loan
Commercial bridge loans are issued by the same types of traditional banks and lending institutions that issue traditional commercial mortgages. However, private lenders can also offer commercial bridge loans. RCN Capital offers commercial bridge loans in amounts ranging from $250,000 to $5 million, with repayment terms of up to 12 months.
5. Commercial Hard Money Loan
A commercial hard money loan is a short-term loan used to purchase—and sometimes renovate—a commercial property before refinancing with long-term commercial real estate loan at a later date. Commercial hard money loans are similar to commercial bridge loans in that they help businesses close fast and offer interest-only payments throughout the life of the loan.
Commercial Hard Money Loan: Costs, Terms, Qualifications
Commercial Hard Money Loan | |
|---|---|
Maximum Loan Amount | Up to 80% LTV Up to $2.5 Million |
Minimum Down Payment | 15% to 35% |
Interest Rates | 8% to 12% |
Origination Fees | 2% to 5% |
Closing Costs | 2% to 5% |
Prepayment Penalty | 1% |
Typical Loan Term | 1 to 3 Years |
Time to Approval / Funding | 10 to 15 Days |
Minimum Credit Score | 600 |
Prior Commercial Projects | 1 to 3 |
Commercial Hard Money Loan Amount & Down Payment
Commercial hard money lenders typically use the loan to value ratio to determine the maximum loan amount that can be borrowed. Loan-to-value represents the current fair market value of the property. Commercial hard money lenders typically issue loans up to 80% of a property’s loan-to-value to a maximum of $2.5 million.
The typical maximum loan amount and down payment requirements for a commercial hard money loans are:
- Maximum loan amount: $2.5 Million
- Loan-to-value: 80%
- Down payment: 20% or greater
Commercial Hard Money Loan Interest Rates & Fees
Commercial hard money loans typically have interest rates ranging from 8% to 12%. Additional fees associated with commercial hard money loans include lender fees, closing costs, and appraisal fees.
In general, the rates and fees you can expect with a commercial hard money loan include:
- Interest rates: 7.99% to 12%
- Lender fees: 1.5% to 3.5%
- Closing costs: 2% to 5%
- Appraisal fee: $2,000 to $4,000
Commercial Hard Money Loan Terms
Commercial hard money loans are short-term commercial real estate loans, and typically have repayment terms ranging from one to four years. Monthly payments are interest-only, creating a balloon payment of the entire principal amount which is due at the end of the loan term. The time to funding for a commercial hard money loan is typically 10 to 15 days.
The typical terms associated with a commercial hard money loan are:
- Repayment term: One to four years
- Payment type: Monthly interest-only payments with principal balloon payment at the end of term
- Time to approval/funding: 10 to 15 days
Commercial Hard Money Loan Qualifications
In general, the qualification requirements for commercial hard money loans are relaxed compared to other commercial mortgage types. You will be required to provide a down payment of at least 20% of the value of the property, have a personal credit score of at least 600, and prior experience with commercial property projects.
The typical qualification requirements for a commercial hard money loan include:
- Minimum credit score: 600
- Down payment: 20% or greater
- Prior experience: One to three prior commercial projects (for renovations and rehabs)
Who Commercial Hard Money Loans Are Right For
Commercial hard money loans are best for real estate investors looking to renovate a building before refinancing to a permanent mortgage. Commercial hard money loans can help borrowers compete with all-cash buyers.
Where To Get A Commercial Hard Money Loan
Commercial hard money loans are issued by commercial hard money lenders. For example, RCN Capital is a national commercial hard money lender that offers loans up to $2.5 million. RCN Capital offers an online application, which can be completed within minutes. After submitting your application you will be contacted by a customer service agent to review your project.
Commercial Real Estate Loan Frequently Asked Questions (FAQs)
What kind of loans are available for commercial property?
There are five primary loan types available for financing commercial property, including SBA 7(a) loans, CDC/SBA 504 loans, traditional commercial mortgages, commercial bridge loans, and commercial hard money loans. Each loan type offers different benefits to borrowers, meeting the various needs of real estate investors.
What are commercial real estate loan rates?
Commercial real estate loan rates vary by loan type and lender. In general, you can expect interest rates ranging from 5% to 15% on a commercial mortgage. Loans with longer repayment terms and that are fully amortized tend to have lower interest rates than short-term financing options like commercial bridge loans and hard money loans.
How much do you have to put down on a commercial loan?
The down payment you will need for a commercial loan varies by the type of loan for which you are applying, and the requirements of the lender with which you are working. In general, most lenders will require a down payment of at least 10% to 20% of the loan amount.
How many years is a commercial mortgage?
The repayment term of a commercial mortgage varies based on the loan type and the lender. SBA 7(a) loans have a maximum repayment term of 25 years for commercial real estate, CDC/504 loans have a maximum term of 20 years, and traditional commercial mortgages have maximum repayment terms set by the lender.
Bottom Line: Commercial Real Estate Loans
Commercial real estate loan rates are often lower than most other business loans. That’s because they’re backed by owner-occupied commercial properties in most cases. The types of owner-occupied properties financed by a commercial real estate loan include such things as mixed-use buildings, retail centers, and office buildings. However, businesses must typically occupy at least 51% of these properties.
Randy Baklini
Hello and thanks for a great primer! I’m writing to ask some guidance. I’m considering purchasing a small outdoor storage property — approximately 20 units with individual overhead doors for personal storage. The property also has an office, a stand-alone residence or another business office, and another lot that could be used for trailer, boat storage. There’s 3 individually parcels in-terms of the property appraiser. Finally, the properties are all vacant. I can put down 50% of the monies as an individual and can, will create an LLC if best suited. Can you suggest a particular type of loan I should pursue? Thanks for the info and potential reply.
Kind regards,
-randyb
Tricia Tetreault
Hi Randy,
It sounds like you have a few different options that may work. An SBA 7(a) loan, an SBA 504/CDC loan, or even a conventional commercial real estate loan may all be options for you. Given that you have a sizeable downpayment, my suggestion would be to first speak to a traditional bank/credit union, as you will likely get better rates if you use a conventional mortgage. The bank may also be able to offer you an SBA 7(a) loan. SBA 504/CDC loans are more complex (though they generally have lower interest rates).
Hope this helps.
Trish
MERRY MCCREEDY
Do you offer c/o refinance for a 6 unit apartment building.
Laura Handrick
Hi Merry,
Sorry, we at Fit Small Business write educational content. We don’t offer loans ourselves.
Here is a list to some lenders and loan information — you may want to contact one of these lenders for more information.
Laura,
Staff Writer
https://fitsmallbusiness.com/business-loans-with-no-credit-check/
https://fitsmallbusiness.com/how-business-credit-scores-work/
Jason L Followell
Is there a loan for commercial property already owned (Needs updating) and a business loan for a NEW Business at the same location?
Allison Bethell
Hi Jason: Thanks for reading our article on commercial real estate loans. In regards to your question, you have a few different options. If you already own the property you could take out an investment property line of credit on it, here’s a link on an article that goes into more detail on investment property lines of credit including how to apply and lenders that offer them. https://fitsmallbusiness.com/investment-property-line-of-credit-loc/ You could also work with a hard money lender and take out an interest-only loan on the property that would also fund necessary repairs. For a business loan, you could look into an SBA loan. We have several helpful articles on SBA loans, here’s one https://fitsmallbusiness.com/types-of-sba-loans/ but I would also recommend searching our site for all of our SBA loan content.
All the best,
Allison
Commercial Bank Loan
It’s hard to come by knowledgeable people in this particular topic,
but you seem like you know what you’re talking about! Thanks
Allison Bethell
Thanks for reading. I’m glad you enjoyed the article.
All the best,
Allison
HAJ Jones
I am purchasing a 7 unit mix use commercial property in Tiverton RI,,I have 25% to put down and closing cost and can you all call me ASAP please.
Thank you
Evan Tarver
Hi Haj,
Unfortunately, we can’t call. However, if you wanted to contact some of the lender options within this article they might be able to help you out.
Good luck with your endeavors!
– Evan