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Best Commercial Real Estate Loans

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 Motola
  • UPDATED

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

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.

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
SmartBiz

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  • SBA loans, term loans, LOCs, & ERC refunds
  • FICO: 675+
  • APR: 5.71%+
  • SBA loans, term loans, LOCs, & ERC refunds
  • FICO: 675+
  • APR: 5.71%+

Apply Now

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Lendio

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  • Commercial real estate loans, term loans, short-term loans, SBA loans, MCAs, LOCs, & equipment financing
  • FICO: 600+ (for commercial real estate loans)
  • APRs: 4.5%+
  • Commercial real estate loans, term loans, short-term loans, SBA loans, MCAs, LOCs, & equipment financing
  • FICO: 600+ (for commercial real estate loans)
  • APRs: 4.5%+

Apply Now

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Live Oak Bank

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  • Term loans, USDA loans, SBA loans
  • FICO: 680+
  • APR: 5.71%+
  • Term loans, USDA loans, SBA loans
  • FICO: 680+
  • APR: 5.71%+

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Rapid Finance

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  • Commercial real estate loans, term loans, MCAs, LOCs, invoice factoring, SBA loans
  • FICO: No minimum given
  • APR: Varies by lender
  • Commercial real estate loans, term loans, MCAs, LOCs, invoice factoring, SBA loans
  • FICO: No minimum given
  • APR: Varies by lender

Apply Now

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ApplePie Capital

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  • Term loans, SBA loans, equipment financing
  • FICO: Varies by franchise
  • APR: Varies by lender
  • Term loans, SBA loans, equipment financing
  • FICO: Varies by franchise
  • APR: Varies by lender

Visit Site

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Read more below to learn why we chose these options.

5 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 the best commercial real estate loans from lenders like Lendio, Rapid Finance, and SmartBiz.

SmartBiz: Best For SBA Loans

SmartBiz


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Pros

  • Rates tend to be inexpensive
  • Long repayment terms
  • Excellent customer service
  • High borrowing amounts

Cons

  • Slow and laborious application process
  • Some additional fees

Why We Chose SmartBiz For Best Commercial Real Estate Loans

When it comes to real estate loans for small business, it’s hard to do better than the terms you’ll get from an SBA loan. And if you need help navigating the SBA loan process, you can’t do much better than SmartBiz, a company that specializes in speeding up and smoothing out the SBA loan application process.

SmartBiz Services

SmartBiz offers SBA commercial real estate loans up to $5 million with term lengths of 25 years.

SmartBiz Rates & Fees

Interest rates for  SBA 504/CDC loans usually have rates slightly above the current prime rate. As of May 2023, this was between 5.71% and 5.72%. In addition to typical SBA closing costs, SmartBiz charges a 1% referral and packaging fee.

SmartBiz Eligibility Requirements

  • 2 years in business
  • 675+ credit score
  • Enough business revenue to support repayments

Get Started With SmartBiz

Read our in-depth review

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Lendio: Best Small Business Loan Marketplace

Lendio


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Pros

  • High borrowing amounts
  • Low credit score requirements
  • Rates tend to be inexpensive
  • Long repayment terms

Cons

  • Application process can be slow
  • Funds can take awhile to disburse.

Why We Chose Lendio For Best Commercial Real Estate Loans

As a loan marketplace, Lendio allows businesses to apply to multiple lenders at once with a single application. This is a great time-saving option for business owners with limited time to spend on a loan application, or who want to compare multiple offers with a single 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.

Lendio Services

Lendio offers commercial mortgages up to $5 million with terms of 20 to 25 years.

Lendio Rates & Fees

Lendio’s commercial real estate loans have interest rates between 4.5% and 6%.

SmartBiz Eligibility Requirements

  • 6 months in business
  • 600+ credit score
  • At least $8,000/month in revenue

Get Started With Lendio

Read our in-depth review

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Live Oak Bank: Best For USDA Loans

Live Oak Bank


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Pros

  • High borrowing amounts
  • Preferred SBA lender
  • USDA loans offered
  • Rates tend to be inexpensive

Cons

  • Borrower qualifications may be difficult to meet
  • Funds can take awhile to disburse

Why We Chose Live Oak Bank For Best Commercial Real Estate Loans

Live Oak Bank is a preferred SBA lender offering SBA 504 loans, which offers excellent terms 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 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 Rates & Fees

Current rates for SBA 504 loans run between 5.71% and 5.72%, with an additional fee of 0%-3.5% of the borrowed amount. The average rate for a USDA loan is currently around 6.691%.

Live Oak Bank Eligibility Requirements

  • 3 years in business
  • 680 credit score
  • Enough business revenue to service loan

Get Started With Live Oak Bank

Read our in-depth review

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Rapid Finance: Best For High-Risk Businesses

Rapid Finance


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Pros

  • Borrower qualifications are lower than banks
  • High borrowing amounts
  • Long repayment terms

Cons

  • Rates can be expensive

Why We Chose Rapid Finance For Best Commercial Real Estate Loans

Rapid Finance is 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 offers real estate loans up to $2 million with terms of 5 to 25 years.

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 up to 2.5%.

Rapid Finance Eligibility Requirements

  • 2 years of tax returns or financials
  • Schedule of debts

Get Started With Rapid Finance

Read our in-depth review

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ApplePie Capital: Best For Franchisees

ApplePie Capital


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Pros

  • Franchise specialists
  • Excellent customer service
  • High borrowing amounts

Cons

  • Only available to franchise businesses
  • Application process can be slow

Why We Chose ApplePie Capital For Best Commercial Real Estate Loans

Franchisees face a very specific set of challenges and demands when it comes to setting up their businesses, including acquiring real estate. To this end, ApplePie Capital offers access to SBA and other loans with long repayment times and high-borrowing amounts, as well as expertise in helping franchises get the funding they need.

ApplePie Capital Services

ApplePie Capital offers both SBA and conventional term loans from $100,000. Term lengths between 5 and 10 years are offered.

ApplePie Capital Rates & Fees

Interest rates vary depending on which of ApplePie Capital’s partners originate the loan. Origination and broker fees also vary by lender and loan type.

ApplePie Capital Eligibility Requirements

  • Must own a franchise business
  • Borrower qualifications may vary depending on franchise

Get Started With ApplePie Capital

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Methodology: How We Chose Our Top Picks

When reviewing business financing products, Merchant Maverick compares data points from each lender. These include interest rates, term lengths, borrower requirements, and reputation. Lenders are then assigned an aggregate score.

For commercial real estate loans in particular, we more heavily weighted factors like the ability to purchase real estate with the product, the term lengths (as mortgages require longer repayment terms), and the interest rates offered by the lender. Unlike many other circumstances, real estate acquisition tends to specifically be the domain of term loans, so we didn’t give much consideration to the breadth of products. As the specific needs of any business can vary greatly, we encourage you to compare lenders beyond this list to get the best financing terms you can.

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 term length from 3 to 25 years. Commercial real estate loan usages include construction, acquisition, and development of properties. Note that commercial real estate loans will often require the borrower to be an incorporate 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 needs and circumstance. 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: Commercial Real Estate Loans

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.

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Chris Motola

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.
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