Commercial Real Estate Loans

Upgrade your office space.

Maybe working from home just isn’t cutting it anymore. Maybe your office needs an overhaul. With a commercial real estate loan from ABNB, you can finance the purchase of a commercial property without breaking your bottom line. And for business owners who already have a space you love, let’s see if we can lower your payments with a rate-friendly refinance. 

Key Features

  • Competitive Rates
  • No Prepayment Penalties
  • Local Decisions
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  • Competitive fixed terms for purchases and refinances 
  • No prepayment penalties
  • Available for owner-occupied and investment properties 
  • Repayment terms tailored to your unique needs 
  • Local lending professionals with local market expertise

You’ve heard of home loans and auto loans, but not everyone is familiar with commercial real estate loans. Business loans, however, are used to buy real estate packages and commercial properties (i.e. offices or storefronts) for businesses. Superficially, these products are similar. You borrow money and you pay it back over time plus interest…seems simple, right?   

Turns out, commercial real estate loans have substantial differences when compared to your everyday residential real estate loan.  

Commercial Real Estate

Residential Real Estate

Loans are typically offered to business entities (owners, developers, partnerships, etc.)

Loans are usually opened by individual borrowers or families

Loan terms vary, but often range from five years up to 25 years.

Loan terms also vary, but only last upwards of 30 years.

LTVs, or loan-to-value ratios, can range from 65% to 80% — meaning borrowers need to put down 20% to 35%.

LTVs are much higher, with mortgages requiring down payments as low as 3% (or 0%, if you’re eligible).

Because business loans have more stringent eligibility requirements, when you apply for a commercial real estate loan, lenders usually want to know a few things about you and the commercial property you’re interested in:   

  • Business Finances: Small businesses are eager, but risky. Financial institutions like ABNB need to know that you’re not taking out more than you can handle, so they’ll review your profit and loss statements to ensure the business can repay the loan.   
  • Business Credit: Sure, you’ve heard of a credit score, but did you know your business has one too? A commercial real estate loan won’t just use your credit history, but will review your company’s credit score to figure out your interest rate and down payment requirements as well.  
  • Personal Finances: Small businesses are often owned by a person or a group of people, so lenders will review your personal credit report(s) and look for potential risks (bankruptcies, foreclosures, judgments, etc.)  
  • Property Details: Where is the property located? Is it in good condition? How much space will your business occupy? These are all things we’ll want answers to before offering a commercial real estate loan. 

Small-business loans (SBA) are offered to exactly who you’re thinking of: small businesses. Small businesses may not have the working capital other larger corporations have, but SBA loans still offer the ability to buy large offices and create a large footprint. SBA loans, like the SBA 7(a) commercial real estate loan and 504 loans, offer small loans to small businesses that are looking to start out on a solid financial track. These business-friendly loans can help with startup costs, real estate purchases, and everyday business capital requirements.

Much like FHA loans, SBA loans are government-backed — meaning they can be issued by private lenders but are insured by the government to protect everyone’s investment.  

We get it — not everyone thinks a local credit union would be the best place to apply for a commercial real estate loan. While BIG banks might have more money, they also have more people which means more overhead costs. Simply put: We operate to serve you and the rest of our members, making it more affordable to borrow from us. Additionally, we employ local lending professionals who know the region inside and out, giving you an edge.