commercial loan program

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, ensuring net operating income covers debt payments plus operating expenses.

Key commercial loan types include:

SBA 7(a)/504 Loans: Government-backed financing for owner-occupied properties, with lower down payments and longer terms than most conventional commercial loans.

Conventional Term Loans: Fixed-rate financing for stabilized properties, with terms and amortization that vary by lender.

Bridge Loans: Short-term financing for transitional properties that are being repositioned.

CMBS Loans: Non-recourse financing for larger stabilized properties.

Qualification is based on business financials, the property's income and appraised value, and its debt service coverage. Smaller loans often require a personal guarantee. Credit and down payment requirements vary by loan type and lender. Minimum loan sizes vary by program, and SBA loans start lower. Eligible properties exclude residential unless multifamily rentals.

Lenders assess the five C's: Character (credit/experience), Capacity (DSCR/cash flow), Capital (equity), Collateral (appraised value), and Conditions (market/property type). Documentation includes leases, business plans, zoning clearance, and environmental reports. Rates depend on term and loan-to-value.

Commercial loans suit established businesses expanding footprints or investors scaling portfolios. SBA offers favorable terms for owner-users and bridge/CMBS for pure investments. Fees and recourse terms vary by lender and loan size.

Ready to finance your commercial property? Contact us for a commercial loan review. Call or message us for the terms that apply to your situation.