Best of

Commercial Real Estate Loans: Compare Best Options

Steve NicastroNovember 21, 2019

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Online lenders offer real estate loans for purchases, renovations or refinancing debt. Compare your options.

Easily get real, personalized small business loan rates to compare -- not just ranges or estimates.

It's free and won't affect your credit.

Get Started

on Lendio's website

Our pick for

Purchases or refinancing

SmartBiz - SBA loan

SmartBiz - SBA loan

Est. APR

9.28 - 10.52%

Min. Credit Score

650

SmartBiz’s low-cost SBA loans work best for established businesses that want to finance an expansion or refinance debt.

Pros

  • Competitive rates among online lenders.
  • Faster than getting an SBA loan from a bank.

Cons

  • Must have strong financials, supported by personal and business tax returns for the past 3 years.
  • Stringent rules on use of proceeds.
  • Requires business lien and personal guarantee.
Read full review

Qualifications

  • Minimum credit score: 650.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $50,000.
  • No bankruptcies or foreclosures in the past 3 years.

Our pick for

Business renovations

Funding Circle - Online term loan

Funding Circle - Online term loan

Est. APR

11.67 - 36.00%

Min. Credit Score

620

Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.

Pros

  • Cash can be available within 3 business days.
  • Competitive rates among online lenders.
  • No minimum revenue requirement.

Cons

  • Requires business lien and personal guarantee.
Read full review

Qualifications

  • Minimum credit score: 620.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: None.
  • No bankruptices in the past 7 years.

Easily get real, personalized small business loan rates to compare -- not just ranges or estimates.

It's free and won't affect your credit.

Get Started

on Lendio's website

Summary of Commercial Real Estate Loans: Compare Best Options

LenderBest ForEst. APRMin. Credit Score
SmartBiz - SBA loan

SmartBiz - SBA loan

Purchases or refinancing

9.28 - 10.52%

650

Funding Circle - Online term loan

Funding Circle - Online term loan

Business renovations

11.67 - 36.00%

620

LenderBest ForEst. APRMin. Credit Score
SmartBiz - SBA loan

SmartBiz - SBA loan

Purchases or refinancing

9.28 - 10.52%

650

Funding Circle - Online term loan

Funding Circle - Online term loan

Business renovations

11.67 - 36.00%

620

Real estate loans for purchases or refinancing

SmartBiz is your best bet if you’re an established and profitable business looking for the lowest borrowing costs.

The company provides Small Business Administration 7(a) commercial real estate loans ranging from $500,000 to $5 million. You can use the proceeds to purchase real estate or refinance existing real estate debt.

With a 25-year repayment term and relatively low APRs, you’ll have a lower monthly payment than with regular business loans.

To qualify, you need a personal credit score starting at 675, at least three years in business and $250,000 or more in annual revenue. In addition, a minimum 51% of the property you purchase must be occupied by and used by your business. You also need to meet the SBA’s eligibility requirements.

A first lien on the real estate is required. Based on its appraised value, you must have at least 10% to 20% equity in the real estate for a refinance or put down 10% to 20% for a real estate purchase. For SmartBiz’s no down-payment plan (called rent replacement option), the monthly loan payment cannot exceed your current monthly lease expense.

Real estate loans for renovations

Funding Circle provides loans up to $500,000, repaid over a period of six months to five years. You need at least two years of business history to qualify, as well as a minimum 620 credit score. There are no minimum revenue requirements, although typical borrowers have annual revenue of about $2 million.

Compare small-business loans

If you’re looking for other financing, NerdWallet has a comparison tool featuring the best small-business loans to meet your needs and goals. We gauged lender trustworthiness, market scope and user experience, along with other factors, and arranged them by categories that include your revenue and how long you’ve been in business.

Last updated on November 21, 2019

To recap our selections...

NerdWallet's Commercial Real Estate Loans: Compare Best Options