The Best Commercial Real Estate Loans For Small Business

Get Started With SmartBiz

Total Rating	4.7
Rates & Fees4.8
Services4.8
Eligibility Requirements4.8
Application4.5
Sales & Advertising Transparency4.9
Customer Service4.9
User Reviews3.5

Pros

Rates tend to be inexpensive
Long repayment terms
Excellent customer service

Cons

Slow and laborious application process
Some additional fees

Why SmartBiz Is The Best Choice For Small- To Mid-Sized SBA Loans

For small business owners, it's hard to beat the terms you’ll get from an SBA loan. And if you need help navigating the SBA loan process, we think you can’t do much better than SmartBiz, a company that specializes in speeding up and smoothing out the SBA loan application process.

We gave SmartBiz a rating of 4.7 out 5 for its reasonable pricing, excellent customer service, and overall transparency, all of which are extremely important when looking for a commercial real estate loan. The one caveat is that SmartBiz limits the amount of money you can borrow, so it may not be a good fit for large commercial real estate deals or those in particularly expensive real estate markets.

SmartBiz Services

SmartBiz offers SBA 7(a) loans up to $500,000 through its lending partners, with terms of up to 10 years.

Additionally, SmartBiz can connect borrowers to lenders offering:

Bank term loans up to $350,000
Lines of credit up to $150,000

SmartBiz Rates & Fees

SmartBiz rates are as follows:

SBA loans: 11.37%+ APR
Bank term loans: 9.9%+ interest rate
Lines of credit: SOFR + 9.9%+ interest rate

Additional fees include:

Referral fee: 2% – 3%
Closing fee: $200 – $750
Packaging fee: 0% – 3%
Guarantee fee (SBA loans only): 0% – 3.5%

SmartBiz Eligibility Requirements

2 years in business
650+ credit score
Enough business revenue to support repayments

When To Use SmartBiz For Commercial Real Estate

You’re buying property that costs $500,000 or less
You’re new to bank and SBA lending
You want to expedite the SBA lending process

Lendio: Best Marketplace For Commercial Real Estate Loans

Lendio

Total Rating	4.8
Rates & Fees5.0
Services5.0
Eligibility Requirements4.9
Application4.5
Sales & Advertising Transparency4.4
Customer Service4.9
User Reviews4.9

Pros

High borrowing amounts
Rates tend to be inexpensive
Long repayment terms

Cons

Application process can be slow
Funds can take awhile to disburse.

Why Lendio Is The Best Marketplace For Commercial Real Estate Loans

As a loan marketplace, Lendio allows businesses to apply to multiple lenders at once with a single application. The service is painless, effective, and comprehensive. With a Merchant Maverick rating of 4.8 out of 5, it's one of our highest-rated lenders.

Lendio is a great option for business owners with limited time to spend on a loan application. When it comes to commercial real estate loans, just be aware that the application process won’t be as quick as it is with other forms of financing, but you'll still have access to multiple lenders with deep pockets.

Lendio Services

Lendio offers commercial real estate loans of up to $5 million with term lengths of 10 to 25 years and SBA loans of up to $5 million with terms of 10 to 30 years.

Additionally, Lendio offers:

Lines of credit up to $250,000
Short-term loans up to $500,000
Business term loans up to $2 million

Lendio Rates & Fees

Lendio’s rates and fees vary by product and lender. For commercial real estate loans, interest rates start at 6.25%.

Lendio Eligibility Requirements

Lendio doesn’t have any hard borrower qualifications, but most of its commercial real estate lenders want to see a credit rating of at least 600. Keep in mind that the lack of other requirements is no guarantee that you’ll receive an offer.

When To Use Lendio For Commercial Real Estate Loans

You need access to high borrowing amounts.
You want to apply to multiple lenders with a single application.
You have fair or better credit.

Get Started With Lendio

Live Oak Bank: Best For USDA Loans

Live Oak Bank

Visit Site

Get Started With Live Oak Bank

Total Rating	2.9
Rates & Fees2.1
Services4.4
Eligibility Requirements2.1
Application1.0
Sales & Advertising Transparency4.6
Customer Service3.9
User Reviews3.9

Pros

High borrowing amounts
Preferred SBA lender
USDA loans offered

Cons

Borrower qualifications may be difficult to meet
Funds can take awhile to disburse

Why Live Oak Bank Is A Great Choice For USDA Loans

Live Oak Bank has difficult borrower requirements to meet, but businesses with strong applications can access great long-term lending options for purchasing commercial real estate. Live Oak Bank is a preferred SBA lender offering SBA 504 loans, which are excellent for financing fixed assets like real estate. The preferred lender status allows Live Oak Bank to process SBA loans more quickly. In addition, Live Oak Bank offers USDA loans, which can be used for agricultural and rural real estate development.

Live Oak Bank Services

Live Oak Bank offers SBA 504 loans of up to $15 million with terms of up to 25 years. Additional types of term loans, including USDA, are available in amounts up to $7.5 million with terms of up to 25 years.

Live Oak Bank Rates & Fees

Current APR at Live Oak Bank runs between 8.5 – 11%.

Live Oak Bank Eligibility Requirements

Live Oak Bank eligibility requirements are as follows:

3 years in business
680 credit score
Enough business revenue to service loan

When To Use Live Oak Bank For Commercial Real Estate Loans

You want an SBA 504 loan.
You want an USDA loan.
You run a mature business and have strong credit.

Rapid Finance: Best For High-Risk Businesses

Rapid Finance

Get Started With Rapid Finance

Total Rating	4.2
Rates & Fees3.6
Services4.3
Eligibility Requirements4.9
Application4.8
Sales & Advertising Transparency4.2
Customer Service2.9
User Reviews4.9

Pros

Borrower qualifications are lower than banks
High borrowing amounts
Long repayment terms

Cons

Rates can be expensive
Application may be slower for commercial real estate

Why Rapid Finance Is The Best Choice For High-Risk Businesses

Rapid Finance is an online lender with a focus on funding businesses that may otherwise have a hard time accessing capital. To that end, Rapid Finance offers a wide variety of financing products, including commercial real estate loans, typically through one of its lending partners. As is often the case for real estate loans, be prepared for a less “rapid” funding process than you would otherwise get from this company.

Rapid Finance Services

Rapid Finance offers real estate loans of up to $2 million with terms of 5 to 25 years and SBA loans of up to $5.5 million with terms of 1 to 30 years.

Rapid Finance also offers:

Working capital loans up to $1 million
Merchant cash advances up to $500,000
Lines of credit up to $250,000
Invoice financing up to $10 million

Rapid Finance Rates & Fees

Rapid Finance’s interest rates may vary depending on the origin of the real estate loan. Additionally, Rapid Finance may charge an origination fee of up to 2.5%.

Rapid Finance Eligibility Requirements

Rapid Financing doesn’t have any disclosed minimums when it comes to time in business, credit score, or revenue. Keep in mind that businesses with better borrower profiles are more likely to receive an offer, however.

When To Use Rapid Finance For Commercial Real Estate Loans

You have poor credit.
You aren’t sure what type of loan you need.
Yyou haven’t been in business that long.

National Business Capital: Best Advisory Service For Large SBA Loans

National Business Capital

Get Started With National Business Capital

Total Rating	4.2
Rates & Fees4.0
Services3.5
Eligibility Requirements4.3
Application4.5
Sales & Advertising Transparency4.4
Customer Service4.7
User Reviews4.9

Pros

High borrowing amounts
Apply to multiple lenders with one application
Customers have assigned account manager

Cons

Rates can be expensive
Application may be slower for commercial real estate

Why National Business Capital Is The Best Advisory Service Large SBA Loans

National Business Capital shares some similarities with Lendio in that you can apply to multiple lenders with a single application. National Business Capital's approach is a little different, however. We like that each borrower is assigned an account representative who helps them tailor their application to appeal to National Business Capital's pool of affiliate lenders. Commercial real estate borrowers, in particular, will appreciate National Business Capital's prep work when it comes to getting high-value SBA loans.

National Business Capital Services

National Business Capital offers SBA loans up to $5 million, with terms of 10 to 25 years.

It also offers:

Term loans up to $5 million
Lines of credit up to $5 million
Equipment financing up to $5 million

National Business Capital Rates & Fees

National Business Capital’s rates and fees vary by the lender you’re paired with.

National Business Capital Eligibility Requirements

Here are the eligibility requirements for National Business Capital:

1 year in business
580+ credit score
$120,000 in gross annual revenue

When To Use National Business Capital For Commercial Real Estate Loans

You need help with your application.
You want to apply to multiple lenders with a single application.
You need to borrow large amounts of money.

Business Loan & Funding Products Review Methodology

We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

Weighted Rating Breakdown

Rates & Fees 20%

Services 20%

Eligibility Requirements 20%

Application 15%

Sales & Advertising Transparency 10%

Customer Service 10%

User Reviews 5%

When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.

Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.

Read more about how we rate small business lenders.

SBA Loan Rates For Commercial Real Estate

You may have noticed that the lenders we’ve recommended for commercial real estate all offer SBA loans. That’s because SBA loans tend to be among the better types of loans small businesses can get to access the amounts of capital necessary to buy commercial real estate, and with long enough term lengths to effectively service their debt.

At the time of this update, SBA loan rates were:

SBA 7(a): 10.75% – 13.25%
SBA 504: 6.41% – 6.46%

Keep an eye on our SBA loan rates page, updated monthly, for the latest rates and fees.

Understanding Commercial Real Estate Loans

A commercial real estate loan is a term loan, typically a mortgage or SBA loan, that is used to finance property. Commercial property is distinguished from residential property by its use to generate income. Commercial real estate loans will place a lien on the commercial property, which then serves as collateral. In comparison to residential mortgages, commercial real estate loans tend to have shorter repayment terms and lower loan-to-value ratios.

Commercial real estate loans typically range in length from 3 to 25 years. Commercial real estate loan usages include construction, acquisition, and development of property. Note that commercial real estate loans often require the borrower to be an incorporated business entity rather than an individual or sole proprietorship/partnership.

How To Choose The Best Commercial Real Estate Loan

The best small business loans can vary from business to business as each has its own specific circumstances. Commercial real estate loans are no different. However, there are some general guidelines you can apply when evaluating your loan repayment terms. Keep in mind the following factors:

The borrowing amount on offer
The term length (this should be high for commercial real estate loans)
The total cost of borrowing
Borrower requirements
Collateral requirements
The lender’s familiarity with your industry

Remember, it never hurts to get multiple offers to compare, as your application may look a lot better to one lender than another. With all this information in mind, you should be ready to take the next step toward getting the real estate financing you need.

FAQs: The Best Commercial Real Estate Loans For Small Business

How long are most commercial real estate loans?

Commercial real estate loan term lengths range between three to 25 years. In general, commercial real estate loans have slightly shorter term lengths than residential mortgages.

Do banks offer commercial real estate loans?

Many traditional banks do offer commercial real estate loans. However, the borrower qualifications and down payment requirements can be onerous for many small businesses. Banks do, however, typically offer better interest rates than you’ll get from an alternative lender.

What is a good interest rate for a commercial loan?

A good commercial real estate loan rate is somewhere between 5% and 7%. A decent metric is to compare your offer against the current interest rate for an SBA 504 loan.

Do commercial mortgages have higher interest rates?

While commercial mortgages have lower interest rates relative to other types of business loans, they are generally more expensive than comparable residential mortgages. This reflects the higher risk inherent in commercial development.

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Chris Motola

Expert Contributor at Merchant Maverick

Chris has been writing about small business topics since 2003. He has been featured in Fox Business, ABC News, Yahoo Finance, GoBankingRates, Newsweek, BizJournals, and other publications. He has a Bachelor’s of Arts in English Writing Arts from SUNY Oswego, and a Masters of Science in Interactive Media from the University of Central Florida. He currently resides in the Hudson Valley region of New York.

View Chris Motola's professional experience on LinkedIn.

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1. SmartBiz

❮ ❯

SBA loans, term loans, LOCs, custom financing
FICO: 650+
APR: 9.9%+

2. Lendio

❮ ❯

Commercial real estate loans, term loans, short-term loans, SBA loans, MCAs, LOCs, & equipment financing
FICO: 600+ (for commercial real estate loans)
APRs: 4.5%+

3. Live Oak Bank

❮ ❯

Term loans, USDA loans, SBA loans
FICO: 680+
APR: 8.5-11%.

Visit Site

4. Rapid Finance

❮ ❯

Commercial real estate loans, term loans, MCAs, LOCs, invoice factoring, SBA loans
FICO: No minimum given
APR: Varies by lender

5. National Business Capital

❮ ❯

Term loans, SBA loans, equipment financing
FICO: Varies by franchise
APR: Varies by lender