How To Get A Small Business Loan For Real Estate

Your business’s access to this kind of loan — which in some respects resembles a residential mortgage for business property — depends on several factors that vary according to the loan source. The Small Business Administration (SBA) has programs that guarantee commercial real estate loans. What do lenders look for?

Lenders usually require that the property be owner-occupied, meaning that your business will have to occupy at least 51% of the building. To get a commercial real estate loan, you’ll need to decide on the type of commercial loan you need — depending on the property and business — and then narrow down your lender options. What do lenders look for?

Businesses can use these for real estate, working capital, or equipment. The SBA doesn’t lend this money directly to businesses. Instead, a bank or financial institution provides the loan, and the SBA backs (guarantees) a certain amount of it.

Buying small business real estate differs greatly from financing a house. Business.org explores the lay of the land in commercial real estate loans. We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure.