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The Best Commercial Real Estate Loans For Small Business
The best commercial real estate loans have ample borrowing amounts, low interest rates, and long repayment terms. Find out our top picks for small business commercial property loans.
Chris has been writing about small business topics since 2003. He has been featured in Fox Business, ABC News, Yahoo Finance, GoBankingRates, Newsweek, BizJournals, and other publications. He has a Bachelor’s of Arts in English Writing Arts from SUNY Oswego, and a Masters of Science in Interactive Media from the University of Central Florida.
WRITTEN & RESEARCHED BY
Chris MotolaChris has been writing about small business topics since 2003. He has been featured in Fox Business, ABC News, Yahoo Finance, GoBankingRates, Newsweek, BizJournals, and other publications. He has a Bachelor’s of Arts in English Writing Arts from SUNY Oswego, and a Masters of Science in Interactive Media from the University of Central Florida.
Expert Contributor
Last updated onUpdated
Chelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well.
REVIEWED BY
Chelsea KrauseChelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well.
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Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
When it comes to financing fixed property, businesses are often best served by commercial real estate loans.
Whether you’re looking to develop a green field or add the lot next door to your existing business, these commercial real estate loan providers are a great place to start your search for financing. Keep reading to learn more about our picks for the best commercial real estate loans.
The best commercial real estate loans provide ample borrowing amounts to cover the potentially high cost of real estate, low interest rates, and long repayment terms. Here are our picks for the best commercial real estate loans.
Why SmartBiz Is The Best Choice For Small- To Mid-Sized SBA Loans
For small business owners, it's hard to beat the terms you’ll get from an SBA loan. And if you need help navigating the SBA loan process, we think you can’t do much better than SmartBiz, a company that specializes in speeding up and smoothing out the SBA loan application process.
We gave SmartBiz a rating of 4.7 out 5 for its reasonable pricing, excellent customer service, and overall transparency, all of which are extremely important when looking for a commercial real estate loan. The one caveat is that SmartBiz limits the amount of money you can borrow, so it may not be a good fit for large commercial real estate deals or those in particularly expensive real estate markets.
SmartBiz Services
SmartBiz offers SBA 7(a) loans up to $500,000 through its lending partners, with terms of up to 10 years.
Additionally, SmartBiz can connect borrowers to lenders offering:
Bank term loans up to $300,000
Lines of credit up to $150,000
SmartBiz Rates & Fees
SmartBiz rates vary by product but are extremely competitive. Additional fees may include referral fees, closing fees, packaging fees, and guarantee fees (for SBA loans).
SmartBiz Eligibility Requirements
2 years in business
650+ credit score (for SBA loans)
Enough business revenue to support repayments
When To Use SmartBiz For Commercial Real Estate
You’re buying property that costs $500,000 or less
Why Lendio Is The Best Marketplace For Commercial Real Estate Loans
As a loan marketplace, Lendio allows businesses to apply to multiple lenders at once with a single application. The service is painless, effective, and comprehensive. With a Merchant Maverick rating of 4.8 out of 5, it's one of our highest-rated lenders.
Lendio is a great option for business owners with limited time to spend on a loan application. When it comes to commercial real estate loans, just be aware that the application process won’t be as quick as it is with other forms of financing, but you'll still have access to multiple lenders with deep pockets.
Lendio Services
Lendio offers commercial real estate loans of up to $5 million with term lengths of 10 to 25 years and SBA loans of up to $5 million with terms of 10 to 30 years.
Additionally, Lendio offers:
Lines of credit
Short-term loans
Business term loans
Lendio Rates & Fees
Lendio’s rates and fees vary by product and lender. For commercial real estate loans, interest rates start at 6.25%.
Lendio Eligibility Requirements
Lendio doesn’t have any hard borrower qualifications, but most of its commercial real estate lenders want to see a credit rating of at least 600. For commercial real estate loans, your credit score should be at least 650. Keep in mind that the lack of other requirements is no guarantee that you’ll receive an offer.
When To Use Lendio For Commercial Real Estate Loans
You need access to high borrowing amounts.
You want to apply to multiple lenders with a single application.
Why Live Oak Bank Is A Great Choice For USDA Loans
Live Oak Bank has difficult borrower requirements to meet, but businesses with strong applications can access great long-term lending options for purchasing commercial real estate. Live Oak Bank is a preferred SBA lender offering SBA 504 loans, which are excellent for financing fixed assets like real estate. The preferred lender status allows Live Oak Bank to process SBA loans more quickly.
In addition, Live Oak Bank offers USDA loans, which can be used for agricultural and rural real estate development.
Live Oak Bank Services
Live Oak Bank offers SBA 504 loans of up to $15 million with terms of up to 25 years. Additional types of term loans, including USDA, are available in amounts up to $7.5 million with terms of up to 25 years.
Live Oak Bank Rates & Fees
Rates vary based on the product you apply for, but Live Oak’s rates are extremely competitive.
Live Oak Bank Eligibility Requirements
Live Oak Bank eligibility requirements are as follows:
3 years in business
680credit score
Enough business revenue to service loan
When To Use Live Oak Bank For Commercial Real Estate Loans
Why BHG Financial Is A Great Choice For Expedited Funding
Sometimes, your business needs to act quickly to complete a commercial real estate transaction. While most lenders can drag out the funding process for weeks (or in some cases, months), BHG Financial has an easy application process, and you can be approved for a business acquisition loan in as little as 24 hours.¹ Once your loan is approved, you can have funds in your account in as little as three days.¹
While loans max out at $500,000²·³ (and the average borrower receives $178,000), BHG's small business loans are great for smaller commercial real estate purchases. And while borrower qualifications may be difficult to meet, established businesses with solid credit profiles will appreciate the speed of funding and the quality of service they'll receive from BHG.
BHG Financial Services
BHG Financial offers business acquisition loans up to $500,000²·³ with terms up to 12 years.² Funds can be used to:
Expand your business
Purchase a business
Purchase real estate
Acquire a franchise
Purchase equipment
Note that funds can’t be used to purchase construction or transportation businesses.
BHG Financial Rates & Fees
BHG Financial does not disclose all potential rates and fees. However, you can use the company’s loan estimator tool to get an idea of your monthly payments. This tool is based on the lowest current available APR of 8.69%.²
BHG Financial Eligibility Requirements
While BHG does not disclose minimum borrowing requirements, it does post the average customer stats for its business acquisition loans:
20 years of professional experience
Personal credit score of 759
Not all solutions, loan amounts, rates, or terms are available in all states.
BHG Financial Disclosures
Not all solutions, loan amounts, rates, or terms are available in all states
¹This is not a guaranteed offer of credit and is subject to credit approval.
²Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant’s credit profile.
³BHG Financial business loans typically range from $20,000 to $250,000; however, well-qualified borrowers may be eligible for business loans up to $500,000.
For California Residents: BHG Financial loans made or arranged pursuant to a California Financing Law license – Number 603G493.
When To Use BHG Financial For Commercial Real Estate Loans
You want a fast, easy, and streamlined application process
You own an established business and have a high personal credit score
You want to receive a business acquisition loan quickly
Application may be slower for commercial real estate
Why Rapid Finance Is The Best Choice For High-Risk Businesses
Rapid Finance is an online lender with a focus on funding businesses that may otherwise have a hard time accessing capital. To that end, Rapid Finance offers a wide variety of financing products, including commercial real estate loans, typically through one of its lending partners.
As is often the case for real estate loans, be prepared for a less “rapid” funding process than you would otherwise get from this company.
Rapid Finance Services
Rapid Finance offers real estate loans of up to $2 million with terms of 5 to 20 years and SBA loans of up to $5.5 million with terms of 1 to 30 years.
Rapid Finance also offers:
Working capital loans
Merchant cash advances
Lines of credit
Invoice financing
Rapid Finance Rates & Fees
Rapid Finance’s interest rates may vary depending on the origin of the real estate loan. Additionally, Rapid Finance may charge an origination fee of 0% – 2.5%.
Rapid Finance Eligibility Requirements
Rapid Financing doesn’t have any disclosed minimums when it comes to time in business, credit score, or revenue. Keep in mind that businesses with better borrower profiles are more likely to receive an offer.
When To Use Rapid Finance For Commercial Real Estate Loans
Application may be slower for commercial real estate
Why National Business Capital Is The Best Advisory Service Large SBA Loans
National Business Capital shares some similarities with Lendio in that you can apply to multiple lenders with a single application. National Business Capital's approach is a little different, however. We like that each borrower is assigned an account representative who helps them tailor their application to appeal to National Business Capital's pool of affiliate lenders.
Commercial real estate borrowers, in particular, will appreciate National Business Capital's prep work when it comes to getting high-value SBA loans.
National Business Capital Services
National Business Capital offers SBA loans up to $5 million, with terms of 10 to 25 years.
It also offers:
Term loans
Lines of credit
Equipment financing
National Business Capital Rates & Fees
National Business Capital’s rates and fees vary by the lender you’re paired with.
National Business Capital Eligibility Requirements
Here are the eligibility requirements for National Business Capital:
1 yearin business
580 credit score
$120,000/year in revenue
When To Use National Business Capital For Commercial Real Estate Loans
You need help with your application.
You want to apply to multiple lenders with a single application.
Why Lendefied Is The Best Choice For Ongoing Support
Through Lendefied's network, borrowers can secure commercial real estate loans, as well as SBA loans up to $5 million, term loans up to $10 million, and business lines of credit up to $10 million. Lendefied looks at the overall picture of your financial background and the funding needs of your business, so borrowers who may not qualify for funding for a bank loan may still qualify with Lendefied.
Lendefied has a smooth and easy application process and works directly with your business to find the best funding solution for your situation. What makes Lendefied stand out is that its team continues to work with you after you are funded, providing complimentary fractional CFO services to help you conquer financial challenges and jump on new opportunities to help your business succeed.
Lendefied Services
Lendefied provides commercial real estate loans, as well as other funding products that can be used for a variety of business purposes. Other options include:
SBA loans up to $5 million
Term loans up to $10 million
Business lines of credit up to $10 million
Equipment financing
Accounts receivable financing
Business cash advances
B2B revolving credit facility
Lendefied Rates & Fees
Unfortunately, Lendefied does not disclose much about its rates and fees. This isn’t unusual, especially for a lender that offers multiple programs, works with lending partners, and customizes solutions for its borrowers.
On the positive side, user reviews indicate that rates and fees are fair and competitive.
Lendefied Eligibility Requirements
To qualify for a commercial real estate loan, Lendefied notes that you must meet the following requirements:
1 year in business
$500,000+ in annual revenue
When To Use Lendefied For Commercial Real Estate
You want funding products with high borrowing limits
You want a funding solution tailored to your business needs
You want support and guidance after your loan is funded
Business Loan & Funding Products Review Methodology
We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.
Weighted Rating Breakdown
Rates & Fees 20%
Services 20%
Eligibility Requirements 20%
Application 15%
Sales & Advertising Transparency 10%
Customer Service 10%
User Reviews 5%
When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.
Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating
Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.
You may have noticed that the lenders we’ve recommended for commercial real estate all offer SBA loans. That’s because SBA loans tend to be among the better types of loans small businesses can get to access the amounts of capital necessary to buy commercial real estate, and with long enough term lengths to effectively service their debt.
Keep an eye on our SBA loan rates page, updated monthly, for the latest rates and fees.
Understanding Commercial Real Estate Loans
A commercial real estate loan is a term loan, typically a mortgage or SBA loan, that is used to finance property. Commercial property is distinguished from residential property by its use to generate income. Commercial real estate loans will place a lien on the commercial property, which then serves as collateral. In comparison to residential mortgages, commercial real estate loans tend to have shorter repayment terms and lower loan-to-value ratios.
Commercial real estate loans typically range in length from 3 to 25 years. Commercial real estate loan usages include construction, acquisition, and development of property. Note that commercial real estate loans often require the borrower to be an incorporated business entity rather than an individual or sole proprietorship/partnership.
How To Choose The Best Commercial Real Estate Loan
The best small business loans can vary from business to business as each has its own specific circumstances. Commercial real estate loans are no different. However, there are some general guidelines you can apply when evaluating your loan repayment terms. Keep in mind the following factors:
The borrowing amount on offer
The term length (this should be high for commercial real estate loans)
The total cost of borrowing
Borrower requirements
Collateral requirements
The lender’s familiarity with your industry
Remember, it never hurts to get multiple offers to compare, as your application may look a lot better to one lender than another. With all this information in mind, you should be ready to take the next step toward getting the real estate financing you need.
FAQs: The Best Commercial Real Estate Loans For Small Business
How long are most commercial real estate loans?
Commercial real estate loan term lengths range between three to 25 years. In general, commercial real estate loans have slightly shorter term lengths than residential mortgages.
Do banks offer commercial real estate loans?
Many traditional banks do offer commercial real estate loans. However, the borrower qualifications and down payment requirements can be onerous for many small businesses. Banks do, however, typically offer better interest rates than you’ll get from an alternative lender.
What is a good interest rate for a commercial loan?
A good commercial real estate loan rate is somewhere between 5% and 7%. A decent metric is to compare your offer against the current interest rate for an SBA 504 loan.
Do commercial mortgages have higher interest rates?
While commercial mortgages have lower interest rates relative to other types of business loans, they are generally more expensive than comparable residential mortgages. This reflects the higher risk inherent in commercial development.
Chris has been writing about small business topics since 2003. He has been featured in Fox Business, ABC News, Yahoo Finance, GoBankingRates, Newsweek, BizJournals, and other publications. He has a Bachelor’s of Arts in English Writing Arts from SUNY Oswego, and a Masters of Science in Interactive Media from the University of Central Florida.
View Chris Motola's professional experience on LinkedIn.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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