Commercial Real Estate Loans
Financing for purchasing, refinancing, or improving commercial property used by a business.
Program overview
Commercial real estate financing is secured by business property. Structures differ for owner-occupied property versus investment property.
How it works
- The property is appraised and evaluated as collateral.
- The provider reviews property income or business cash flow depending on the structure.
- Terms, amortization, and any balloon features are set in the loan agreement.
Common uses
- Purchasing a facility
- Refinancing existing property debt
- Renovation and improvements
Who may be a good fit
- Businesses buying or refinancing a location
What you may need
- Business bank statements
- Business tax returns
- Personal tax returns
- Year-to-date profit and loss statement
- Balance sheet
- Business debt schedule
- Government-issued identification
- Business formation documents
- Property information
- Lease or rent roll where applicable
Potential advantages
- Long-term asset financing
- Can build equity in a business location
Potential drawbacks
- Longer diligence timelines
- Appraisal and closing costs apply
Application process
- Identify the property and intended use
- Prepare business and property documentation
- Underwriting, appraisal, and diligence
- Closing and funding
General qualification considerations
- Property type, condition, and use
- Occupancy requirements for certain programs
- Business cash flow and debt service coverage
- Borrower equity contribution
Alternatives to consider
SBA 7(a) LoansThe SBA's most widely used program, generally used for working capital, expansion, equipment, and some acquisitions.SBA 504 LoansLong-term financing generally associated with owner-occupied commercial real estate and major fixed assets.Business Term LoansA lump sum repaid over a set period, commonly used for defined projects and one-time investments.
Frequently asked questions
What is owner-occupied property?
Owner-occupied generally means the business itself occupies a defined portion of the property. Specific occupancy thresholds depend on the program and provider.
This is preliminary information, not an eligibility determination, offer, or approval. Final eligibility, terms, rates and approval are determined by the applicable financing provider.