Commercial Real Estate Loans: Compare Best Options

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