Commercial Real Estate Loans
Whether you're purchasing, refinancing, constructing, or expanding commercial real estate, MyLoanDesk provides access to a broad network of commercial lenders — including options for special-use properties that many lenders won't finance, like hotels, self-storage facilities, and gas stations.
Estimate only. Assumes a fully amortizing loan at the entered term. Does not include taxes, insurance, or CAM charges. Actual terms depend on property type, business financials, and the specific program.
What Is Commercial Real Estate Financing?
Commercial real estate financing covers loans used to purchase, refinance, or construct property used for business purposes — office buildings, retail space, mixed-use buildings, multifamily properties, and specialized properties like hotels or self-storage facilities. Unlike a residential mortgage, commercial real estate loans are typically underwritten around both the property's income potential and the borrowing business's overall financial strength.
Several distinct paths exist to finance commercial real estate, each with different down payment, term, and eligibility tradeoffs — from government-backed SBA programs to conventional commercial mortgages.
Ways to Finance Commercial Real Estate
SBA 7(a)
The most flexible SBA option — can combine a real estate purchase with business acquisition costs or working capital in one loan.
SBA 504
Built specifically for long-term fixed assets like real estate or equipment, often with a lower down payment and a below-market fixed-rate portion.
Conventional / Bridge CRE
Traditional commercial mortgages and bridge financing for borrowers who don't need or want SBA involvement, or need to move faster.
How Commercial Real Estate Financing Works
Special-Use Properties We Finance
Many lenders stay away from "special purpose" commercial properties because they can be harder to resell if a loan ever defaults. MyLoanDesk works with lenders who finance these property types as a regular part of their business, not an exception:
Program Highlights
- Financing from $350,000 up to $10M+, depending on the program
- Down payments as low as 10% on eligible SBA-backed programs
- Loan-to-value up to 90% on eligible programs
- Terms up to 25–30 years, with many programs carrying no balloon payment
- Special-use and niche property types considered
- Working capital or renovation costs can often be included alongside the purchase
SBA-backed commercial real estate loans typically require far less down payment than a conventional commercial mortgage — often 10% versus 20-30% — which keeps more of your capital free for the business itself rather than tied up in the building.
Combining a business acquisition, real estate purchase, and working capital into a single loan (available on some SBA structures) simplifies both the closing process and your long-term debt structure — one payment instead of several.
Working with a lender or broker experienced in special-use properties matters — a lender unfamiliar with financing a hotel or a car wash may decline a deal that a specialist lender would approve without hesitation.
Who This Is For
- Business owners purchasing the building their business operates from
- Investors acquiring commercial or mixed-use property
- Owners of special-use businesses — hotels, self-storage, gas stations, and similar
- Business buyers who want to finance a business acquisition and its real estate together
- Owners looking to refinance an existing commercial mortgage for better terms
SBA 7(a) vs. SBA 504 vs. Conventional Financing
| SBA 7(a) | SBA 504 | Conventional CRE | |
|---|---|---|---|
| Typical down payment | As low as 10% | As low as 10% | 20–30%+ |
| Loan amount | Up to $5M | Up to $5M (project cost may be higher) | Varies by lender |
| Can include working capital | Yes | Limited | Typically no |
| Rate structure | Variable, tied to prime | Fixed portion, often below market | Varies, may include balloon |
| Best for | Combining real estate with business acquisition or working capital | Long-term ownership of real estate or major equipment | Borrowers who don't need or want SBA involvement |
Frequently Asked Questions
What's the difference between an SBA 7(a) and an SBA 504 loan for commercial real estate?
An SBA 7(a) loan is more flexible and can combine a real estate purchase with business acquisition costs or working capital in a single loan, typically up to $5 million. An SBA 504 loan is structured specifically for long-term fixed assets like commercial real estate or equipment, often with a lower down payment and a below-market fixed rate on a portion of the loan, but less flexibility to include other business costs.
How much down payment do I need for a commercial real estate loan?
It depends on the program. SBA-backed commercial real estate loans can require as little as 10% down, well below the 20-30% typically required for a conventional commercial mortgage. The exact amount depends on the property type, your business financials, and the specific loan program.
Can I get financing for a special-use property like a hotel or gas station?
Yes, though not every lender finances special-use properties such as hotels, gas stations, car washes, assisted living facilities, restaurants, funeral homes, or golf courses. These properties are often harder to resell if a loan defaults, so it’s worth working with a lender experienced in that specific property type rather than assuming a general commercial lender will approve it.
What loan-to-value can I get on commercial real estate?
SBA-backed commercial real estate loans can offer loan-to-value ratios up to around 90%, meaningfully higher than the 70-75% typically available through a conventional commercial mortgage.
Can I combine a business acquisition with a real estate purchase in one loan?
In many cases, yes. Certain SBA loan structures, particularly the SBA 7(a) program, allow a business acquisition, real estate purchase, and working capital needs to be financed together in a single loan rather than requiring separate financing for each piece.
Are there balloon payments on commercial real estate loans?
It depends on the loan type. Many SBA-backed commercial real estate loans are fully amortizing with no balloon payment, while some conventional commercial mortgages carry a balloon payment after a shorter fixed-rate period. Confirming the amortization structure upfront is worth doing before committing to a program.
How long does commercial real estate financing take to close?
Timelines vary by loan size, property type, and program, but working with a lender that underwrites in-house rather than routing files through multiple external approvals can meaningfully speed up the process compared to a standard bank timeline.
Can commercial real estate financing include funds for working capital or renovations?
Some programs, particularly SBA 7(a) loans, allow working capital or renovation and improvement costs to be included alongside the real estate purchase, which can be useful when acquiring a property that needs work before it’s fully operational.
What credit and business history do I need to qualify?
Requirements vary by program and lender, but most commercial real estate financing looks at business cash flow and debt service coverage, the owner’s personal credit and financial strength, and time in business, among other factors. A stronger financial profile generally unlocks better rates and higher loan-to-value.