Commercial Real Estate Loan
Finance the purchase, refinance, or construction of commercial property.
A commercial real estate (CRE) loan provides long-term financing for businesses looking to purchase, refinance, or build out a commercial property — office buildings, retail centers, warehouses, mixed-use properties, or owner-occupied facilities. These loans typically carry lower rates than unsecured products because the property serves as collateral. Terms range from 5 to 25 years, often with a balloon payment or rate adjustment at a set interval. For owner-occupied properties, SBA 504 or 7(a) programs can reduce down payments to as little as 10%. CRE loans give businesses predictable occupancy costs, potential asset appreciation, and the ability to lease unused space for additional income. Loan amounts typically start at $250,000 and can reach into the tens of millions.
Example
A dental practice has been renting at $8,000/month and has the opportunity to purchase the building for $1.2 million. With an SBA 504 loan, they put down $120,000 (10%), and their total mortgage payment comes to $7,200/month — less than rent — while building equity in an asset expected to appreciate over time.
