If you’re considering investing in commercial real estate projects, then you’re going to need to have a good idea about how you’re going to fund these projects. Unlike traditional residential projects, there are more hoops to jump through with commercial projects as their expenses are on a larger scale. Here are some financing options to get you started in figuring out how you’re going to fund your commercial project.


Traditional Bank Loans

When you utilize a traditional bank to fund your commercial real estate project, you’ll likely be rewarded with great low-interest rates. These loans typically are given for 20 years and are based on strict requirements. Some of these requirements include income verification, down payment verification, and credit score requirements. You’ll find that traditional banks tend to have more strict qualification standards than other options available to you for funding.

SBA Commercial Real Estate Loans

The SBA or Small Business Administration offers two different loan programs for small businesses. These include the 7(a) loans and the 504 loans. The 7(a) loans are more of your general business purpose loans used to acquire and repair existing commercial real estate. The 504 loans are used more for purchasing and upgrading commercial properties. Both of these can come with terms up to 25 years and low-interest rates for businesses that qualify.

Commercial Bridge Loans

If you need money quickly to act on an excellent investment deal, then you may be interested in a commercial bridge loan. This is a short-term loan that allows you to purchase a commercial property with ease. It has less strict requirements than traditional bank loans and SBA commercial real estate loans. These loans tend to have you pay interest for a set period, say months or years, and then you’re expected to pay the loan in full upon maturity. These are great loans to fill the void when you need to act quickly on a real estate deal that you plan on selling or refinancing shortly.


When it comes to commercial real estate, your options are a bit different than when solely dealing with residential properties. The above are just some of the loan types that you can opt to get when purchasing your commercial property. There are various other methods you can utilize. It’s best to assess your situation and opt for a loan type that fits your individual needs for that specific project.