Commercial Real Estate Loans: Best Options and How to Get One
Commercial real estate loans help you buy, refinance or renovate commercial property by providing flexible payment terms and low interest rates.
| Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
|---|---|---|---|---|---|---|---|
 with Fundera by NerdWallet | Read expert review | Best for borrowers who can't qualify for bank financing | $5,000,000 | 24 months | 10.5% | Up to 25 years | with Fundera by NerdWallet |
| Read expert review | Best for borrowers who want low interest rates | $5,000,000 | 24 months | 5% | 10 to 25 years | |
 with Fundera by NerdWallet | Read expert review | Best for borrowers who need money fast | $500,000 | 24 months | 15.22% | 6 months to 7 years | with Fundera by NerdWallet |
 | Best for larger businesses with strong finances | $10,000,000 | Undisclosed | Undisclosed | Up to 10 years | ||
 | Read expert review | Best for smaller businesses with strong finances | Undisclosed | 24 months | Undisclosed | Up to 15 years |
commercial real estate loans: More details
U.S. Small Business Administration: Best for borrowers who can't qualify for bank financing
Low interest rate
SBA 7(a) loan
with Fundera by NerdWallet
Max loan amount
$5,000,000
Min. credit score
650
Term length
Up to 25 years
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
with Fundera by NerdWallet
U.S. Small Business Administration: Best for borrowers who want low interest rates
SBA CDC/504 loan
Max loan amount
$5,000,000
Min. credit score
680
Term length
10 to 25 years
Pros
- Low down payment required.
- Repayment terms of up to 25 years.
- Competitive interest rates.
Cons
- Must meet job creation or public policy goals to qualify.
- Longer processing times than online lenders.
Pros
- Low down payment required.
- Repayment terms of up to 25 years.
- Competitive interest rates.
Cons
- Must meet job creation or public policy goals to qualify.
- Longer processing times than online lenders.
iBusiness Funding: Best for borrowers who need money fast
May fund quickly
iBusiness Funding - Online term loan
with Fundera by NerdWallet
Max loan amount
$500,000
Min. credit score
660
Term length
6 months to 7 years
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
with Fundera by NerdWallet
TAB Bank: Best for larger businesses with strong finances
TAB Bank - Commercial real estate loan
Max loan amount
$10,000,000
Min. credit score
700
Term length
Up to 10 years
Pros
- Large loan amounts available.
- Construction financing is also available.
Cons
- Large down payment likely required.
- Personal credit score of 700 or higher required.
Pros
- Large loan amounts available.
- Construction financing is also available.
Cons
- Large down payment likely required.
- Personal credit score of 700 or higher required.
Bank of America: Best for smaller businesses with strong finances
Bank of America - Commercial real estate loan
Max loan amount
Undisclosed
Min. credit score
700
Term length
Up to 15 years
Pros
- Discounts for Preferred Rewards for Business members and U.S. veterans.
- Options for balloon or fully amortized loans.
- Can be used to refinance an existing commercial real estate loan.
Cons
- Added fees may drive up the total cost of the loan.
- Application must be completed over the phone or in-person.
Pros
- Discounts for Preferred Rewards for Business members and U.S. veterans.
- Options for balloon or fully amortized loans.
- Can be used to refinance an existing commercial real estate loan.
Cons
- Added fees may drive up the total cost of the loan.
- Application must be completed over the phone or in-person.
What is a commercial real estate loan?
A commercial real estate loan is a type of commercial loan
How do commercial real estate loans work?
Commercial real estate loans work similarly to personal mortgages. They are structured as term loans to be repaid over a set period of time, with interest, and are usually secured by the property being financed.
Some real estate loans, however, are structured as balloon mortgages. With these small-business loans
Balloon loans essentially limit the amount of cash you need upfront to purchase a property, and lower your monthly payments; however, at the end of the loan term, the remaining balance of the loan, or the “balloon” payment, is due.
Repayment terms
Interest rates and fees
Types of commercial real estate loans
| Loan type | Overview |
|---|---|
| Commercial mortgage loan | Standard loans used to purchase or refinance commercial property. Similar to residential mortgage loans, but usually have shorter terms and higher down payment requirements. |
| Short-term financing used to take advantage of an immediate opportunity and cover the gap until you can find a long-term option. | |
| Typically offered by private investors or lenders, these short-term, often expensive loans are issued based on the value of your collateral, as opposed to more traditional loan requirements. | |
| Partially guaranteed by the SBA and issued by participating lenders, these loans offer up to $5 million and repayment terms of up to 25 years. | |
| Specifically designed for large fixed asset purchases, these loans are made up of three parts: Bank loan (50%), Certified Development Company loan (40%) and borrower down payment (10%). | |
| These loans finance the construction of new commercial buildings or major renovations. |
Commercial real estate loan requirements
📈 Personal finances
Most commercial loans from banks or traditional institutions factor your personal income, personal assets and credit score into their underwriting decision. Ideally, you should have minimal debt and a decent credit score before you think about applying for a commercial mortgage, as you would for a personal mortgage. At the very least, a review of your personal financial situation will help you going into the process.
💰 Down payment
Many lenders, including some that offer SBA financing, want to know that you have vested interest in a commercial real estate loan, and will ask for you to put a percentage of cash down. The amount of the required down payment, or equity injection, will vary depending primarily on the lending institution and your business financials.
⏱️ Time in business
Lenders want to make sure your business is somewhat established with revenue trending upward before granting something as high stakes as a commercial mortgage. Most require at least two years in business, but some want to see as many as four years.
🏠 Collateral
Commercial real estate loans are typically secured business loans specific collateral
Where to get a commercial real estate loan
- Banks and credit unions. Banks and credit unions, like Bank of America, PNC and U.S. Bank, offer commercial real estate loans for both owner-occupied real estate and investment properties. Depending on the bank and your specific qualifications, banks and credit unions typically offer the most competitive interest rates and terms; however, they also have some of the most stringent qualification requirements. Typically, you’ll need multiple years in business, strong personal credit and strong business financials.
- SBA lenders. Both SBA 7(a) and SBA 504 loans can be used to finance commercial real estate, with maximum loan amounts up to $5.5 million, terms up to 25 years, competitive interest rates and down payment requirements as low as 10%. To qualify for an
SBA real estate loan - Online lenders.
Online business lenders - Community development financial institutions (CDFIs).
CDFIs
How to get a commercial real estate loan
Specific requirements for commercial real estate loans will vary based on your business’s specific needs, the type of lender you choose and your business’s qualifications, but you can generally expect to follow these steps:
1. Review your personal finances
Most commercial real estate lenders will take your personal finances into consideration, and some require a personal guarantee
2. Assess your available cash for a down payment
A commercial real estate lender will likely require a down payment
3. Research and compare lenders
Consider your specific financing need — new purchase, construction or refinance — and assess your business’s basic qualifications to help determine which type of lender is best for your business. You may use your business bank as a starting point for your research.
4. Gather documents and apply
Each lender will have its own list of required documents, but generally, you can expect to submit items such as business and personal tax returns and bank statements, business legal documents, insurance information and other information about the property, including a property appraisal.
» Also consider: Should you use a DSCR loan for your rental property?
Commercial real estate loan calculator
Trying to figure out if getting a commercial mortgage is right for your business? Use our commercial real estate loan calculator
Last updated on July 1, 2025
How Fundera by NerdWallet works
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cost, speed, repayment schedule — can play a role in deciding which
product is right for you. Let us help you through the process.
Get started
Fill out one simple application
Answer a 3-minute questionnaire about your business to get personalized lending options. It’s free and won’t impact your credit score.
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Compare interest rates and repayment terms to choose the best product for your needs.
Get your loan
If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans editorial guidelines
