Commercial Loan Types
Every commercial loan type, explained clearly. Compare rates, terms, down payments, and find the right fit.
DSCR Loans
Qualify based on property cash flow, not personal income
Debt Service Coverage Ratio (DSCR) loans let real estate investors qualify based on the property's rental income rather than personal income or employment. Ideal for investors building a portfolio without traditional income documentation.
SBA 7(a) Loans
The most flexible SBA loan — up to $5M for nearly any business purpose
SBA 7(a) loans are the most common SBA loan program, offering up to $5 million for working capital, equipment, real estate, business acquisition, and refinancing. Backed by the U.S. Small Business Administration, they offer competitive rates and longer terms than conventional business loans.
SBA 504 Loans
Below-market fixed rates for commercial real estate and heavy equipment
SBA 504 loans provide long-term, fixed-rate financing for major fixed assets like commercial real estate and heavy equipment. The loan is split between a bank (50%), a Certified Development Company (40%), and your down payment (10%), resulting in below-market rates on the CDC portion.
Bridge Loans
Short-term financing to bridge the gap to permanent capital
Commercial bridge loans provide short-term financing (typically 6-36 months) to acquire, renovate, or stabilize a property before securing permanent financing or selling. They close fast and offer flexibility that traditional loans can't match.
Construction Loans
Finance ground-up construction or major renovation projects
Commercial construction loans fund new development or major rehabilitation projects. Funds are disbursed in stages as construction progresses. Most are short-term (12-36 months) and convert to permanent financing upon completion.
Commercial Mortgage
Traditional long-term financing for stabilized commercial properties
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.
Hard Money Loans
Asset-based lending with speed and flexibility
Hard money loans are short-term, asset-based loans primarily secured by real estate. Funded by private investors or companies rather than banks, they prioritize the property's value over the borrower's creditworthiness. Ideal for fix-and-flip, distressed properties, and deals that need to close fast.
CMBS Loans
Securitized commercial mortgages for larger properties
Commercial Mortgage-Backed Securities (CMBS) loans are commercial mortgages that are pooled together and sold as bonds to investors. They offer competitive rates and non-recourse terms for larger stabilized properties, typically $2M and above.
Mezzanine Loans
Fill the gap between senior debt and equity
Mezzanine financing sits between senior debt and equity in the capital stack. It allows borrowers to increase leverage beyond what a first mortgage provides, reducing the equity needed for a deal. Secured by a pledge of the borrower's ownership interest rather than a lien on the property.
USDA Business Loans
Government-backed financing for rural and agricultural businesses
USDA Business & Industry (B&I) loans provide government-guaranteed financing for rural businesses. Similar to SBA loans but for rural areas, they offer competitive terms for business acquisition, real estate, equipment, and working capital in communities with populations under 50,000.
Non-QM Loans
Mortgages for borrowers who don't fit the conventional mold
Non-Qualified Mortgage (Non-QM) loans are for borrowers who don't meet conventional lending criteria — self-employed, irregular income, recent credit events, or foreign nationals. They use alternative documentation like bank statements, asset depletion, or property cash flow to qualify.