Commercial Construction Loans
Program
Financing to Build, Renovate & Develop Commercial Real Estate
Commercial development requires more than a great project. It takes a realistic construction budget, experienced team, sufficient equity, and the right financing structure.
At SBAcommercialloans.com, we provide access to commercial construction financing for qualifying business owners, investors, developers, and builders.
Whether you’re constructing an owner-occupied facility, developing an investment property, expanding an existing building, or completing a major renovation, our team can help identify financing options for your project.
Program Overview
What Is a Commercial Construction Loan?
A commercial construction loan provides financing for the construction, development, expansion, or substantial renovation of commercial real estate.
Unlike a traditional commercial mortgage, where funds are generally advanced at closing, construction loan proceeds are typically released through a series of draws as construction progresses.
The lender may inspect completed work before releasing additional funds, allowing financing to follow the project’s approved construction schedule and budget.
Project Types
Types of Commercial Construction Projects
We can evaluate financing for a variety of commercial projects, including:
Multifamily developments
Office buildings
Retail centers
Warehouses and industrial facilities
Medical buildings
Restaurants
Hotels and hospitality properties
Self-storage facilities
Mixed-use developments
Owner-occupied business facilities
Other qualifying commercial properties
Property eligibility and loan requirements vary by program.
SBA Programs
SBA Construction Financing
If an eligible operating business will occupy the completed property, SBA 7(a) or SBA 504 financing may provide an attractive solution.
Depending on the program and transaction, SBA financing may help fund eligible land acquisition, construction, improvements, equipment, and related project expenses.
This can be particularly valuable for business owners who want to construct or expand their own facility instead of continuing to lease commercial space.
Alternative Programs
Alternative Construction Loans
Not every development project qualifies for SBA financing.
Investment properties, speculative developments, transitional assets, and projects requiring different underwriting structures may be better suited for conventional, private, bridge, or alternative construction financing.
For larger qualifying projects with experienced borrowers and strong project fundamentals, we may also evaluate potential Fannie Mae or FHA/HUD construction and permanent financing programs, where applicable.
At SBAcommercialloans.com, we evaluate multiple financing sources and loan programs to identify potential solutions based on the project’s size, property type, borrower experience, financial strength, and specific financing requirements.
Underwriting
How Are Construction Loans Underwritten?
Construction lenders typically evaluate both the borrower and the project. Important factors may include:
Because construction involves additional risks compared with financing an existing stabilized property, lenders generally conduct a detailed review of the project before approval.
Exit Strategy
Planning the Exit Strategy
Many commercial construction loans are temporary, making the exit strategy an important part of underwriting.
Once construction and stabilization are complete, potential permanent financing options may include SBA financing, conventional commercial loans, DSCR loans, Fannie Mae or Freddie Mac multifamily financing, or FHA/HUD financing.
Some transactions may also qualify for construction-to-permanent financing, while others require a separate refinance after completion.
Next Step
Let's Review Your Construction Project
If you’re planning commercial construction or a major renovation, tell us about your property, construction budget, requested loan amount, borrower equity, estimated completed value, and project timeline.
Our commercial lending team can evaluate your project and help identify potential SBA, Conventional, Bridge, Private, or other commercial construction financing options.
Build Your Project with the Right Financing
REQUEST A CONSTRUCTION LOAN REVIEW
Construction financing is subject to lender underwriting, appraisal, project feasibility, borrower qualifications, permits, budget review, equity requirements, and program availability.
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