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Best Construction Loan Lenders For 2024

The best commercial construction loans provide ample borrowing amounts, sufficient term lengths, and competitive rates. Find out if these loans are the right fit for your construction project.

    Chris Motola
  • Last updated onUpdated

  • Erica Seppala
  • REVIEWED BY

    Erica Seppala

    Editor & Senior Staff Writer

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.

Commercial construction loans are a common way to finance the cost of building, developing, or renovating real estate assets. If your business is in building or expansion mode, there’s a good chance a commercial construction loan will be best suited to the task. Commercial construction loans are, however, a specialized form of lending that isn’t available from all lenders.

Below, we’ll give you some of our best picks for commercial real estate loans and take a closer look at what commercial real estate loans are, how they work, and when they’re an appropriate solution for your business financing needs.

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
Lendio

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  • Term loans, short-term loans, SBA loans, merchant cash advances, lines of credit, & equipment financing
  • FICO: No minimum
  • APR: Varies by lender
  • Term loans, short-term loans, SBA loans, merchant cash advances, lines of credit, & equipment financing
  • FICO: No minimum
  • APR: Varies by lender

Apply Now

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Fora Financial

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  • Short-term loans, merchant cash advances
  • FICO: 570+
  • APR: 10% (flat fee)
  • Short-term loans, merchant cash advances
  • FICO: 570+
  • APR: 10% (flat fee)

Apply Now

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National Business Capital

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  • Term loans, lines of credit, equipment financing, SBA loans
  • FICO: 580+
  • APR: 7%+
  • Term loans, lines of credit, equipment financing, SBA loans
  • FICO: 580+
  • APR: 7%+

Apply Now

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National Funding

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  • Short-term loans, equipment financing
  • FICO: 600+
  • APR: 17%+ (flat fee)
  • Short-term loans, equipment financing
  • FICO: 600+
  • APR: 17%+ (flat fee)

Apply Now

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Live Oak Bank

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  • SBA loans, USDA loans, term loans
  • FICO: 680+
  • APR: 6.4%+
  • SBA loans, USDA loans, term loans
  • FICO: 680+
  • APR: 6.4%+

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Read more below to learn why we chose these options.

5 Best Construction Loan Lenders

The best commercial construction loans provide ample borrowing amounts, sufficient term lengths, and competitive rates. Many of the lenders on this list also offer SBA loans, which are often one of the best options small businesses can tap for construction capital. Here are the best commercial construction lender for 2024:

Compare Commercial Construction Loans

Borrowing AmountsTerm LengthsSBA Loans Available
LendioUp to $5 million10 - 30 years
Fora FinancialUp to $1.5 million4 - 18 months
National Business CapitalUp to $5 million6 months - 25 years
National FundingUp to $500,000 ($400,000 in some markets)4 months - 2 years
Live Oak BankUp to $15 millionUp to 25 years

Lendio: Best Marketplace for SBA Loans

Total Rating 4.8
Rates & Fees5.0

Services5.0

Eligibility Requirements4.9

Application4.5

Sales & Advertising Transparency4.4

Customer Service4.9

User Reviews4.9



Pros

  • Multiple types of financing are available
  • High borrowing amounts
  • Low credit score requirements (for some products)

Cons

  • Rates can be expensive
  • Funds can take awhile to disburse

Why Lendio Is The Best Marketplace For SBA Loans

At 4.8 out of 5 stars, Lendio is one of our highest-rated lenders. Lendio allows businesses to apply to every lender within its network with a single application. While many of these lenders don't offer loans large enough for most commercial construction projects, others can connect businesses with high-value SBA 7(a) and 504 loans. SBA loan criteria is fairly consistent across lenders, but Lendio can help you find one that is eager to work with you, and can do so on a timeline that works for you.

Lendio Services

Lendio offers SBA loans up to $5 million. Lendio also offers:

  • Term loans up to $2 million
  • Short-term loans up to $500,000
  • Lines of credit up to $500,000
  • Merchant cash advances up to $200,000
  • Equipment financing up to $5 million

Lendio Rates & Fees

Lendio’s rates and fees vary based on product type and the lender you select. Lendio has low-interest options such as SBA loans, as well as more expensive funding like MCAs for borrowers with bad credit or other challenges.

Lendio Eligibility Requirements

Lendio works with multiple lenders, and each lender has its own set of eligibility requirements for funding. However, Lendio recommends having a credit score of at least 550 to qualify and you’ll still need to meet SBA loan qualifications if you want an SBA loan. Additionally, the more revenue, higher credit score, and longer time in business you have, the better odds you have for qualifying for better rates and terms.

When To Use Lendio For Construction Loans

  • You want to apply to multiple lenders with a single application.
  • You aren’t sure which lender you want to go through.
  • You’re a first-time borrower.

Get Started With Lendio

Read our in-depth review

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Fora Financial: Best Online Loans For Construction Companies With Poor Credit

Fora Financial

Total Rating 3.6
Rates & Fees3.2

Services3.5

Eligibility Requirements4.2

Application4.3

Sales & Advertising Transparency3.2

Customer Service2.8

User Reviews3.9



Pros

  • Discounts for early repayment
  • Fast and easy application process
  • Funds are disbursed quickly

Cons

  • Rates can be expensive
  • Repayment are required frequently

Why Construction Companies With Poor Credit Should Consider Fora Financial

Fora Financial’s short-term business loans generally won’t be the best construction solution for most companies. However, they can be a great tool for the construction companies that are themselves doing the work. Fora Financial offers high borrowing amounts which can be used to cover cash flow shortfalls during the construction process and allow you to continue working until you receive payment from the client.

Best of all, Fora Financial's credit requirements for borrowers are quite low, making it a great fallback option for companies that can't find construction funding elsewhere.

Fora Financial Services

Fora Financial offers short-term loans and merchant cash advances up to $1.5 million with terms of up to 18 months.

Fora Financial Rates & Fees

Fora Financial’s flat fees range from 10% to 30% of the amount borrowed. An origination fee of 1% – 4% is also charged.

Fora Financial Eligibility Requirements

Fora Financial’s borrower qualifications are as follows:

  • 6 months in business
  • 570+ credit score
  • Annual revenue of $250,000/year

When To Use Fora Financial For Construction Loans

  • You run a construction company that needs funding to cover a shortfall.
  • You have poor credit.
  • You can repay the loan quickly.

Get Started With Fora Financial

Read our in-depth review

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National Business Capital: Best Advisory Service For Construction Loans

National Business Capital

Total Rating 4.2
Rates & Fees4.0

Services3.5

Eligibility Requirements4.3

Application4.5

Sales & Advertising Transparency4.4

Customer Service4.7

User Reviews4.9



Pros

  • High borrowing amounts
  • Application process is fast and easy
  • Customers have assigned account managers

Cons

  • Rates can be expensive
  • May require collateral

Why Businesses That Need Help Navigating The Lending Process Should Consider National Business Capital

Like Lendio, National Business Capital is an aggregator service, meaning that you’ll apply to multiple lenders through a single application. For commercial construction loans, National Business Capital can provide both medium-term loans and SBA loans, as well as stop-gap solutions for construction companies.

One of the biggest selling points for National Business Capital is that you’ll get an assigned account manager to guide you through the process, which can be a major advantage if you're navigating the lending scene for the first time.

National Business Capital Services

National Business Capital offers:

  • Medium-term loans up to $5 million
  • Business line of credit up to $5 million
  • Equipment financing up to $5 million
  • SBA loans up to $5 million

National Business Capital Rates & Fees

National Business Capital’s interest rates start at 7%. Origination and additional fees vary by lender.

National Business Capital Eligibility Requirements

Here are the borrower requirements for National Business Capital:

  • 1 year in business
  • 580+ credit score
  • $120,000 per year in revenue

When To Use National Business Capital For Construction Loans

  • You need help with your application.
  • You aren’t sure what type of loan is best for your circumstances.
  • You want to apply to multiple lenders with a single application.

Get Started With National Business Capital

Read our in-depth review

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National Funding: Best Alternative Loan For Construction Companies With Fair Credit

National Funding

Total Rating 3.7
Rates & Fees3.8

Services2.8

Eligibility Requirements4.3

Application4.8

Sales & Advertising Transparency3.8

Customer Service2.9

User Reviews3.7



Pros

  • Discounts for repaying early
  • Fast and easy application process
  • Funds are disbursed quickly

Cons

  • Rates can be expensive
  • Repayments are required frequently

Why Construction Companies With Fair Credit Should Consider National Funding

National Funding is one of the oldest and most established lenders in the business and has decades of experience financing construction companies. While you won't see borrowing amounts large enough to fund a commercial construction project outright, it can address a wide variety of construction-related costs.

We've found that National Funding excels at providing fast loans to construction companies that need an infusion of cash to manage cash flow, hire more workers, or purchase equipment.

National Funding Services

National Funding offers:

  • Short-term loans up to $500,000 ($400,00 in some markets)
  • Equipment financing up to $150,000

National Funding Rates & Fees

National Funding’s flat fees start at 17%. An origination fee of 1-3% is also charged.

National Funding Eligibility Requirements

National Funding’s borrower requirements are as follows:

  • 6 months in business
  • 600+ credit score
  • $250,000 per year in revenue

When To Use National Funding For Construction Loans

  • You have fair credit.
  • You need working capital to finish a project.
  • You need to finance equipment.

Get Started With National Funding

Read our in-depth review

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Live Oak Bank: Best Bank For SBA Construction Loans

Total Rating 3.8
Fees & Rates3.3

Services5.0

Rewards3.8

Features3.1

Eligibility Requirements4.5

Application Process3.3

Sales & Advertising Transparency4.1

Customer Service4.5

User Reviews3.9

Monthly Fee Range

$0-$100/month

APY Range

2.00%-4.60%

Account Types Offered

Checking, high-yield savings, and CD accounts

Pros

  • Interest rates tend to be inexpensive
  • High borrowing amounts
  • Financing is suited to business growth needs

Cons

  • Borrower qualifications may be hard to meet
  • Collateral is usually required (SBA loans)

Why Live Oak Bank Is The Best Bank Lender For SBA Loans

For big commercial construction projects, you'll probably want to consider SBA loans (SBA 504 loans in particular). We love that Live Oak Bank is an SBA Preferred Lender that can fund businesses in all 50 states, making it both convenient and fast (as SBA lending goes). If you're looking at a rural construction project, you can also take advantage of Live Oak Bank's USDA loan services.

Despite Live Oak Bank's convenient online lending infrastructure, it is still a bank, which means you'll have to meet fairly high borrower requirements to get funding.

Live Oak Bank Services

Live Oak Bank offers:

  • SBA 7(a) loans up to $5 million
  • SBA 504 loans up to $15 million
  • Term loans (including USDA loans) up to $5 million

Live Oak Bank Rates & Fees

Current rates for SBA 7(a) loans start at 10.75%. SBA 504 loans start at 6.41%. USDA loan rates start at 6.9%

Live Oak Bank Eligibility Requirements

To qualify for an SBA loan with Live Oak Bank, borrowers need a minimum personal credit score of 680 and a business history of at least 3 years. Businesses in all 50 states + DC can apply online.

When To Use Live Oak Bank For Construction Loans

  • You have good credit.
  • You’ve been in business for at least 3 years.
  • You want to work with an SBA Preferred Lender.

Get Started With Live Oak Bank

Read our in-depth review

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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.

Read more about how we rate small business lenders.

Understanding Commercial Construction Loans

Commercial construction loans are used to cover construction, renovation, and acquisition of property. Traditional commercial construction loans work a little differently than your typical business term loan, although it is possible to cover construction costs with a variety of loan types.

Traditional commercial loans are disbursed in phases as the project progress, with interest only accumulating on the amount that’s been disbursed. Most traditional commercial loans also don’t cover 100% of construction projects, so be prepared to make a down payment or use a mezzanine loan.

Check out our deep dive into commercial construction loans for more information.

What Type Of Loan Is Best For Construction?

For small business construction projects, many will be best served by an SBA 504 loan, which has low down payments and interest rates, long repayment terms, and reasonable credit score requirements. SBA 7(a) loans can also be used for construction projects.

To stay up to date on costs, check out our SBA loan rates page, which is updated monthly.

Construction companies looking for short-term financing, on the other hand, should consider commercial bridge loans.

How To Choose The Best Commercial Construction Loan

When searching for a great commercial construction loan, you’ll want to keep in mind the size of the project, how quickly you need funding, and the resources you have available to use as collateral or a down payment. For many small businesses, an SBA 504 loan will be the best option for major construction projects. Others may be better served by bank loans or alternative loans.

Need a broader selection of business loans? Check out our picks for the best small business loans.

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Chris Motola

Chris Motola

Expert Contributor at Merchant Maverick
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. He currently resides in the Hudson Valley region of New York.
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