Commercial loan programs provide businesses with financing for office buildings, retail centers, multifamily apartments, warehouses, medical offices, and other income-producing properties. These loans support acquisition, refinance, construction, or expansion, with underwriting focused on property cash flow (DSCR), borrower credit, and loan-to-value ratios rather than personal income alone. Lenders evaluate the Debt Service Coverage Ratio (minimum 1.25x typical), ensuring net operating income covers debt payments plus operating expenses.

Key commercial loan types include:

SBA 7(a)/504 Loans: Government-backed up to $5 million for owner-occupied properties; 10-20% down, long terms (20-25 years), for small businesses with than $6.5M net income

Conventional Term Loans: Fixed-rate for stabilized properties; 65-80% LTV, 3-5 year terms with 20-30 year amortization.

Bridge Loans: Short-term (6-36 months) for transitional properties; up to 75% LTC, higher rates for repositioning.

CMBS Loans: Non-recourse for large deals ($1M+); 5-10 year terms, pooled securities.

Qualification requires business financials (3-5 years of tax returns, P&L, and balance sheets), personal guarantees for smaller loans, appraisals confirming value via income/sales approaches, and DSCR ≥1.25. Credit scores vary (680+ preferred), with down payments of 20-35%. Minimum loan sizes are often $1M, though SBA starts lower. Eligible properties exclude residential unless multifamily rentals.

Lenders assess the 3-5 C's: Character (credit/experience), Capacity (DSCR/cash flow), Capital (equity), Collateral (appraised value), and Conditions (market/property type). HVCRE loans for development require 15% borrower equity. Documentation includes leases, business plans, zoning clearance, and environmental reports. Rates depend on term/LTV; shorter terms are lower.

Commercial loans suit established businesses expanding footprints or investors scaling portfolios. SBA offers favorable terms for owner-users and bridge/CMBS for pure investments. Origination fees are 0.5-1%, with personal recourse common under $5M.

Ready to finance your commercial property? Apply for a commercial loan quote today and leverage your business assets.