What is a Commercial Loan?
Commercial real estate loans are designed for properties used for business purposes — from office buildings and retail centers to warehouses and mixed-use developments.
We work with investors and business owners at every stage, providing customized financing structures that match your investment goals and timeline.
Key Benefits
- Loans from $500K to $50M+
- Office, retail, industrial, and mixed-use properties
- Flexible amortization schedules
- Fixed and floating rate options
- Non-recourse financing available
- Fast approvals and closings
Who This Loan Is For
Investors and business owners financing income-producing property — office, retail, industrial, multi-family (5+ units), and mixed-use. Commercial loans are underwritten primarily on the property's cash flow rather than just personal income.
Typical Requirements
- • Property NOI must support DSCR (typically 1.25x+)
- • 65–80% LTV depending on property type
- • Personal guarantee common (non-recourse available for some)
- • 5–10 year terms with 20–30 year amortization
- • Business financials and rent roll required (subject to underwriting)
Key Terms to Know
- Debt Service Coverage Ratio (DSCR)
- Net Operating Income divided by annual debt service. Lenders look for 1.25x or higher to confirm the property covers its loan payments.
- Net Operating Income (NOI)
- A property's gross rental income minus operating expenses (taxes, insurance, maintenance) — before debt service.
- Loan-to-Value (LTV)
- The loan amount divided by the appraised property value. Lower LTV reduces lender risk and can improve terms.
- Amortization
- The schedule over which the loan is paid down. Commercial loans often amortize over 20–30 years even when the term is shorter.
- Capitalization Rate (Cap Rate)
- NOI divided by property value — a quick measure of an investment property's unleveraged yield.
- Personal Guarantee
- A borrower's personal promise to repay if the property cannot service the debt. Non-recourse options exist for qualifying assets.
See our FAQ and loan resources for more definitions and checklists.
Related Loan Programs & Resources
Ready to Finance Your Next Property?
Our commercial lending team is ready to structure the right deal for you.