Cohen Financial Group offers commercial loans for business owners and investors. We can help you secure financing for commercial real estate, including office, multi-family, new construction, retail, and more. We work with an extensive network of lenders to secure the most attractive rates and terms.
common types of commercial loans:
- Permanent Loan –Similar to a residential mortgage, a permanent, conventional loan is the first loan on a commercial property.
This loan carries a minimum 5-year repayment term.
- Small Business Association (SBA) Financing – The SBA guarantees multiple loan programs through approved lenders.
There are two types of SBA loans that are commonly used to finance commercial real estate.
Here are the basics of each program
- 1. SBA 504 – Provides long term, fixed-rate financing for owner-occupied small business properties. Proceeds from a loan can be
used for real estate financing, refinancing, and certain soft costs. A 504 loan can be an attractive alternative to a conventional
commercial loan because it typically comes with a lower down payment requirement for qualified borrowers. The maximum
repayment term on loans for real estate is 25 years.
- 2. SBA 7A –The 7a was created to finance higher-risk loans, like a business and building purchase. Interest rates are typically
adjustable and tied to the prime rate. Up-front costs are higher than a 504 loan. The maximum repayment term on loans
for real estate is 25 years.
Guidelines for commercial loans are subject to change when there are adjustments to government and lender policies, interest rate modifications, and fluctuations in the economy.