What are small balance commercial loans?

A small balance commercial loan is a type of a loan that is offered on all types of commercial property. Higher balance commercial loans, usually above $1.5 million can have rigorous underwriting requirements, while small-balance commercial mortgages under $1.5 million are relatively easy to get closed due to a streamlined under writing process. Along with less strict requirements, lenders can offer commercial borrowers a greater selection of products with more flexibility.

Who are these small balance commercial loans good for?

Small Balance Commercial Loans are perfect for when you are:

  • Turned down by a bank due to loan size or credit challenges
  • Want to cash out a large amount of equity from your existing facility
  • Don't report enough income on tax returns
  • Need a long-term fixed rate on a commercial property

Many small business owners are unable to get financing for Small Balance Commercial loans for a variety of reasons. However, we understand the unique obstacles you may face. You are more than a credit score or past financial challenges.

What purposes these small balance commercial loans are used for?

Our small balance commercial loans are used for the following purposes:

(1) Purchase

Whether you’re ready to own the building your business occupies or you’ve found a great investment property, we can help you get the money to purchase that building.

(2) Refinance

Have a high rate or balloon mortgage? Is the rate on your current mortgage adjustable? We can help you get the funds to refinance to a stable and fixed rate commercial loan.

(3) Property Improvement

Looking to make renovations to your building? Whether you need a new roof or an expanded parking lot, we can help you get the funds you need to achieve your dream.

(4) Debt Consolidation

You can consolidate business debt, pay off the IRS or state taxes, equipment leases and other monthly expenses with a small balance commercial mortgage from us.

(5) Working Capital

Want to take advantage of some great deals you found on inventory for your business? Need money in the bank to cover bills while you wait for accounts receivables to clear?

What small balance commercial loan products do we offer?

We offer two different kinds of products:

  • Our Core Program is expertly designed to fit vast majority of small-business owners and commercial property investors in the country.
  • Our Second program is for credit challenged buyers. Many small business owners are unable to obtain bank financing for a variety of reasons. However, we understand the unique obstacles that these borrowers are more than their credit score or past financial challenges.

    Max LTV 80% - Varies by property type. Final LTV’s and rates are determined by experience of the business owner, length of ownership, cashflow, strength of credit, and strength of commercial real estate.

What type of properties we can work with?

Most commercial property types considered, including but not limited to:

  • Mixed Use Buildings
  • Professional Office Spaces
  • Apartment buildings
  • Garage/Storage
  • Mobile Home Parks
  • Recreational
  • Day Care Centers
  • Bars/Restaurants
  • Retail (free standing/strip)
  • Warehouses
  • Motels/Hotels
  • Auto repair/Auto body shops
  • Funeral Homes
  • Houses of worship
  • Hair Salons
  • Other Property Types

Items Needed to Start The Process

Depending on the loan amount, all we initially need is a completed 1003 form (or a business loan application). If there are Income Producing Properties, and/or, deal is $1+ million, we may require Current Rent Roll, Last 2 Years of Operating Statements, Personal Financial Statements and Schedule of Real Estate Owned.

Hard Money Loan/Bridge Loan Financing

There are borrowers for whom their business has taken a turn for the worse and now they have a commercial property with cashflow that cannot service their current debt obligations for a variety of reasons. In these circumstances, we can help with Hard Money/Bridge Loan Financing options to get these deals across the finish line.

Other time-sensitive situations where urgent bridge loan financing options work are: discounted note payoffs, urgent property acquisitions, note acquisitions, recapitalizations, capital restructuring, bankruptcy resolutions, rehabilitation projects, lease-up stabilization, partner buyout, among others.

These Urgent Bridge Loan Financings can have higher rates, shorter terms and charge origination points, but these deals can close fast and can get borrower a breathing room of 12-36 months to improve overall situation for the better.

Our Fee Structure

We are compensated directly by the lenders in a very high majority of cases. For those rare few cases, where we must charge clients fee, we may use the following fee schedule, except Hard Money and Cannabis Loans that could incur additional costs.

Our Fees         Loan Amount

1.0%              <$1,000,000
0.9%              $1,000,001 - $2,000,000
0.8%              $2,000,001 - $3,000,000
0.7%              $3,000,001 - $4,000,000
0.6%              $4,000,001 - $5,000,000
0.5%               >$5,000,001