Best Construction Loan Lenders For 2024

Total Rating	4.8
Rates & Fees5.0 Pricing 5.0 Affordability 5.0
Services5.0
Eligibility Requirements4.9
Application4.5
Sales & Advertising Transparency4.4 Sales Practices 4.0 Web Presence 5.0
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

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

Fora Financial

Get Started With Fora Financial

Total Rating	3.7
Rates & Fees3.2 Pricing 3.0 Affordability 3.4
Services3.5
Eligibility Requirements4.6
Application4.3
Sales & Advertising Transparency3.2 Sales Practices 3.0 Web Presence 3.5
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 eligibility requirements for borrowers are very 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 15 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
500+ credit score
$15,000 per month in gross sales

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.

National Business Capital: Best Advisory Service For Construction Loans

National Business Capital

Get Started With National Business Capital

Total Rating	4.2
Rates & Fees4.0 Pricing 5.0 Affordability 3.0
Services3.5
Eligibility Requirements4.3
Application4.5
Sales & Advertising Transparency4.4 Sales Practices 5.0 Web Presence 3.5
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.

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

National Funding

Get Started With National Funding

Total Rating	3.7
Rates & Fees3.8 Pricing 3.7 Affordability 3.8
Services2.8
Eligibility Requirements4.3
Application4.8
Sales & Advertising Transparency3.8 Sales Practices 4.0 Web Presence 3.5
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.

Live Oak Bank: Best Bank For SBA Construction Loans

Live Oak Bank

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Get Started With Live Oak Bank

Total Rating	3.8
Fees & Rates3.7
Services4.3
Rewards3.8 Quality & Value Of Earned Rewards 3.8
Features2.9
Eligibility Requirements4.5
Application Process3.3
Sales & Advertising Transparency4.1 Sales Practices 4.0 Web Presence 4.3
Customer Service4.5
User Reviews3.9

APY

4.00%

Monthly Fee

Minimum Account Balance

$0 - $2,500

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.

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.

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

Senior Staff Writer at Merchant Maverick

Chris has been writing about small business topics since 2003. In 2015, he joined Merchant Maverick, where he writes about business financing, payment processing, and demographic trends in entrepreneurship. Chris 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.

View Chris Motola's professional experience on LinkedIn.

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1. Lendio

❮ ❯

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

2. Fora Financial

❮ ❯

Short-term loans, merchant cash advances
FICO: 500+
APR: 10% (flat fee)

3. National Business Capital

❮ ❯

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

4. National Funding

❮ ❯

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

5. Live Oak Bank

❮ ❯

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

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