A complete guide to traditional commercial loans and alternative financing options—helping you choose the right structure for your property or business nationwide.

What Are Commercial Loans?

Commercial loans are financing solutions used by business owners and real estate investors to purchase, refinance, construct, or expand income-producing properties and business operations.

In most cases, commercial financing begins with traditional commercial real estate loans, which are underwritten based on the property, the business, and the overall strength of the transaction. Unlike residential loans, approval is not based solely on personal income, but on cash flow, collateral, and risk structure.

Commercial loans are commonly used for:

• Office buildings

• Retail centers

• Industrial and warehouse properties

• Mixed-use developments

• Multifamily properties

• Owner-occupied business locations

Because no two projects are identical, commercial financing includes a range of structures. When traditional commercial loans are not the best fit, alternative options such as SBA loans, bridge financing, construction loans, or asset-based lending may be used to match specific timelines, capital needs, or investment strategies.

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Types of Commercial Loans

There is no single “best” commercial loan. The right option depends on the property type, borrower experience, deal structure, and exit strategy.

Below are the most common commercial loan programs used nationwide.

Commercial Real Estate Loans

Traditional commercial real estate loans are used to purchase or refinance stabilized, income-producing properties. These loans are typically structured with fixed or variable rates and longer repayment terms aligned with long-term ownership.

DSCR Loans

Debt Service Coverage Ratio (DSCR) loans are designed for income-producing properties where approval is based primarily on property cash flow rather than personal income.

These loans are commonly used by investors building or expanding rental and mixed-use portfolios.

SBA 7(a) & SBA 504 Loans

SBA loans are government-backed programs offering long terms and lower down payment options for owner-occupied businesses.

They are often used to:

• Purchase commercial real estate

• Expand business operations

• Acquire equipment or working capital

Bridge Loans

Bridge loans provide short-term financing that allows borrowers to acquire or reposition a property while securing permanent financing.

They are ideal for time-sensitive opportunities or transitional assets.

Hard Money Loans

Hard money loans are asset-based loans designed for speed and flexibility. Approval is primarily based on property value rather than traditional income documentation.

These loans are often used for renovations, acquisitions, or non-traditional deals requiring fast closings.

Commercial Construction Loans

Commercial construction loans fund ground-up construction or major renovations.

These loans are typically released in stages and may convert into permanent financing once the project is complete.

CMBS Loans

Commercial Mortgage-Backed Securities (CMBS) loans provide long-term, fixed-rate financing for stabilized commercial properties.

They often offer non-recourse structures and are commonly used for larger or institutional-grade assets.

Development & Mezzanine Loans

Development and mezzanine loans support complex projects that require layered financing.

These structures are frequently used for large-scale developments, expansions, or projects involving multiple capital sources.

How Commercial Loans Are Underwritten

Commercial loan underwriting focuses on the overall strength of the transaction rather than personal income alone.

Lenders typically evaluate:

• Property income and operating expenses

• Debt Service Coverage Ratio (DSCR)

• Loan-to-value (LTV)

• Property type and condition

• Market strength and location

• Borrower experience and track record

• Business financials (when applicable)

Because underwriting standards vary by loan program, working with a commercial loan specialist helps ensure the deal is matched with the right lender and structure.

Commercial Loans by Property Type

Commercial financing is available for a wide range of property types, including:

• Office buildings

• Retail centers

• Industrial and warehouse properties

• Multifamily apartment buildings

• Mixed-use developments

• Hospitality properties such as hotels and motels

• Self-storage facilities

• Special-purpose commercial assets

Each property type carries unique risks and financing considerations.

Commercial Loans by Borrower Type

Commercial loan programs can be structured for many borrower profiles, including:

• Real estate investors

• Owner-occupied businesses

• Developers and builders

• Partnerships and legal entities

• Growing companies expanding locations

Loan structures can be tailored for both first-time commercial borrowers and experienced investors scaling portfolios.

Commercial Loan Programs by State

Commercial loan availability and structure can vary by state due to market conditions, property demand, and lender guidelines.

EZCommercialLoans.com provides commercial financing nationwide with state-specific programs designed to align with local markets and deal structures.

Explore commercial loan programs by state to learn more about financing options available in your area.

How to Apply for a Commercial Loan

The commercial loan process begins with understanding your goals and deal structure.

Preparing the right information upfront helps speed approvals and improve loan terms.

The process typically includes:

• Reviewing project objectives

• Evaluating property or business details

• Matching the deal with the appropriate loan program

• Submitting a tailored loan request

• Moving toward approval and closing

Because commercial financing is highly customizable, guidance from a knowledgeable specialist can help avoid delays and costly mistakes.

Commercial Loan FAQs

What credit score is required for a commercial loan?
Credit requirements vary by loan type. Many programs focus more on property income or business performance than personal credit.

How long does it take to close a commercial loan?
Timelines range from a few weeks for bridge or hard money loans to several months for SBA or CMBS financing.

Do commercial loans require personal guarantees?
Some loans require guarantees, while others—such as non-recourse financing—do not.

Can I refinance an existing commercial property?
Yes. Commercial properties can often be refinanced to lower rates, extend terms, or access equity.

Are commercial loans available nationwide?
Yes. Commercial financing is available in all states with programs structured to fit local markets.

Speak With a Commercial Loan Specialist

Choosing the right commercial loan can significantly impact the success of your business or investment.

Speaking with a commercial loan specialist helps you evaluate options, structure deals effectively, and secure financing aligned with your goals.

Contact EZCommercialLoans.com (888)214-5151 to discuss your commercial loan needs and explore financing options nationwide.