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Commercial Mortgage in Alabama

Browse 25 lenders offering commercial mortgage in Alabama. Compare rates, requirements, and loan programs — then connect directly.

AL Lenders
25
Typical Rate
6% - 8%
Down Payment
20-30%
Term
5-30 years (often 5-10 year terms with 25-30 year amortization)
Closing Time
30-60 days

Commercial Mortgage Lenders in Alabama

25 lenders offering commercial mortgage to borrowers in Alabama.

Live Oak Banking Company

WILMINGTON, NC

One of the nation's top SBA 7(a) lenders, specializing in lending to small businesses across healthcare, veterinary, beverage, self-storage, and other industries. Offers SBA loans, USDA loans, conventional business loans, and commercial real estate financing.

628 SBA loans SBA Verified
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The Huntington National Bank

COLUMBUS, OH

Major regional bank and consistently one of the top SBA lenders in the country by number of loans. Offers SBA 7(a) and 504 loans alongside conventional business lending, commercial real estate, and treasury management services.

1337 SBA loans SBA Verified
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Newtek Bank, National Association

Miami, FL

Technology-driven SBA preferred lender providing 7(a) loans to small and medium-sized businesses nationwide. Part of Newtek Business Services Corp, offering integrated business solutions including lending, payments, and technology services.

1039 SBA loans SBA Verified
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Celtic Bank Corporation

SALT LAKE CITY, UT

Industrial bank and top SBA preferred lender headquartered in Salt Lake City. Specializes in SBA 7(a) lending for business acquisitions, partner buyouts, commercial real estate, and working capital. Also offers USDA business loans.

442 SBA loans SBA Verified
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Readycap Lending, LLC

BERKELEY HEIGHTS, NJ

Non-bank SBA preferred lender offering SBA 7(a) and 504 loans nationwide. Specializes in commercial real estate, business acquisition, and expansion financing for small businesses. Known for fast closings and flexible underwriting.

563 SBA loans SBA Verified
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Wells Fargo Bank National Association

Sioux Falls, SD

One of the largest banks in the U.S. and a major SBA preferred lender. Offers the full range of SBA programs including 7(a) and 504 loans, alongside conventional commercial lending, commercial real estate, and equipment financing.

220 SBA loans SBA Verified
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First Internet Bank of Indiana

FISHERS, IN

Nation's first state-chartered, FDIC-insured internet bank and a top SBA preferred lender. Offers SBA 7(a) loans, conventional commercial lending, franchise financing, and healthcare practice loans nationwide.

106 SBA loans SBA Verified
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First Bank of the Lake

Osage Beach, MO

Community bank based at the Lake of the Ozarks and a top SBA 7(a) preferred lender. Specializes in SBA lending for business acquisitions, commercial real estate, and partner buyouts. Known for lending to franchises and hospitality businesses.

191 SBA loans SBA Verified
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United Midwest Savings Bank National Association

DE GRAFF, OH

Community bank and SBA preferred lender based in Ohio. Specializes in SBA 7(a) loans for small businesses, including business acquisitions, commercial real estate, and working capital financing.

302 SBA loans SBA Verified
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Fifth Third Bank

CINCINNATI, OH

Major regional bank and SBA preferred lender with operations across the Midwest and Southeast. Offers SBA 7(a) and 504 loans, conventional commercial lending, equipment financing, and commercial real estate loans.

117 SBA loans SBA Verified
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Cadence Bank

TUPELO, MS

Regional bank serving the Southeast and Texas, and an active SBA preferred lender. Offers SBA 7(a) and 504 loans, commercial real estate lending, equipment financing, and full-service business banking.

132 SBA loans SBA Verified
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Citizens Bank

ELIZABETHTON, TN

Regional bank based in Tennessee and an SBA preferred lender. Provides SBA 7(a) loans, conventional commercial lending, and business banking services to small and medium-sized businesses in the Southeast.

88 SBA loans SBA Verified
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United Community Bank

Greenville, SC

Regional bank serving the Southeast and an SBA preferred lender. Offers SBA 7(a) and 504 loans, conventional commercial lending, commercial real estate, equipment financing, and comprehensive business banking.

36 SBA loans SBA Verified
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Climate First Bank

St. Petersburg, FL

Mission-driven community bank focused on sustainability and an SBA preferred lender. Offers SBA 7(a) loans, solar and clean energy financing, commercial real estate lending, and conventional business loans with a focus on environmentally beneficial projects.

45 SBA loans SBA Verified
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Lendistry SBLC, LLC

Los Angeles, CA

CDFI and SBA community advantage lender focused on providing responsible lending to small businesses in underserved communities. Offers SBA 7(a) loans, microloans, and commercial real estate financing with a focus on minority and women-owned businesses.

$50K – $5M 229 SBA loans SBA Verified
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The Bancorp Bank National Association

Sioux Falls, SD

Fintech-enabling bank and SBA preferred lender. Provides SBA 7(a) loans alongside its primary business of providing private-label banking and financial services through fintech partnerships.

40 SBA loans SBA Verified
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Gulf Coast Bank and Trust Company

NEW ORLEANS, LA

New Orleans-based community bank offering SBA 7(a) loans, commercial real estate financing, and business lines of credit. A top SBA lender in the Gulf South region with personalized service for small businesses.

37 SBA loans SBA Verified
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Renasant Bank

TUPELO, MS

Mississippi-based regional bank offering SBA 7(a) loans, commercial real estate, and business banking across the Southeast. Known for relationship-driven lending and community banking values.

14 SBA loans SBA Verified
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First Horizon Bank

MEMPHIS, TN

Memphis-based regional bank offering SBA 7(a) loans, commercial real estate, equipment financing, and treasury management. One of the largest banks in the Southeast with a strong small business lending program.

23 SBA loans SBA Verified
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Colony Bank

FITZGERALD, GA

Georgia-based community bank offering SBA 7(a) loans, commercial real estate, and small business banking. Serves businesses throughout Georgia with relationship-focused lending.

56 SBA loans SBA Verified
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About Commercial Mortgage in Alabama

Conventional commercial mortgages provide long-term financing for stabilized, income-producing commercial properties. Offered by banks, credit unions, and institutional lenders with competitive rates for qualified borrowers and properties. In Alabama, 25 lenders currently offer Commercial Mortgage financing with loan amounts from $250K to $50M and rates typically ranging from 6% - 8%.

Alabama Market Overview

Alabama has attracted major automotive plants from Honda, Hyundai, and Mercedes-Benz, creating industrial CRE demand in the Huntsville-Birmingham-Mobile corridor. The state's low cost of living and business-friendly tax environment continue to draw corporate relocations.

Alabama offers some of the lowest property tax rates in the nation, with commercial properties assessed at 20% of fair market value. The state's Foreign Trade Zones near the Port of Mobile provide significant advantages for industrial and warehouse properties. Opportunity Zone designations in Birmingham and Montgomery have spurred notable redevelopment activity in downtown commercial corridors.

Who Should Consider Commercial Mortgage?

  • Stabilized income properties
  • Long-term holds
  • Refinancing
  • Experienced investors

Key Requirements

  • Stabilized property with income history
  • DSCR ≥ 1.20-1.25
  • LTV ≤ 75-80%
  • Borrower experience and liquidity

Pros and Cons

Advantages

  • Lower rates than bridge/hard money
  • Longer terms
  • Predictable payments
  • Build equity over time

Considerations

  • Stricter underwriting
  • Longer closing timeline
  • Prepayment penalties
  • Recourse may be required

Commercial Mortgage FAQ

What's the difference between a commercial mortgage and a residential mortgage?
Commercial mortgages are for income-producing properties (5+ units, office, retail, etc.). They're underwritten primarily on the property's income, not the borrower's personal income. Terms are typically shorter with balloon payments.

Commercial Mortgage by City in Alabama

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