Commerical Loans
Financing for business property and operations
Commercial loans through Howell Mortgage Group provide businesses with financing for real estate acquisition, equipment purchases, expansion projects, and working capital needs. From SBA-backed programs to conventional commercial mortgages and bridge financing, Howell Mortgage Group connects business owners with the right capital structure for their specific commercial objectives.
What Are Commerical Loans?
Commercial loans are financing products designed to meet the capital needs of businesses, from small companies to large enterprises. Unlike residential mortgages that finance personal home purchases, commercial loans fund business-related objectives including real estate acquisition, equipment purchases, inventory financing, tenant improvements, and operational cash flow.
Commercial loan structures vary significantly based on the purpose, collateral, and borrower profile. Term loans provide a lump sum with fixed or variable rates over a set repayment period. Lines of credit offer revolving access to capital as needed. SBA-backed programs provide government-guaranteed financing with favorable terms for qualifying small businesses.
Howell Mortgage Group specializes in commercial real estate loans that finance the purchase, refinance, or development of business property including office buildings, retail spaces, industrial facilities, multi-family apartments (5+ units), and mixed-use properties. Our extensive lender network ensures competitive rates across property types and borrower profiles.
Types of Commercial Loans
Commercial Real Estate Loans
Finance the purchase, refinance, or cash-out of commercial property including offices, retail, industrial, multi-family (5+ units), and mixed-use buildings.
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Equipment Financing
Loans or leases secured by the machinery, vehicles, technology, or other equipment being purchased. The equipment itself serves as collateral.
SBA Loans
Government-backed loans with lower down payments and longer terms. SBA 7(a) for general business purposes and SBA 504 for major real estate and equipment purchases.
Term Loans
Lump-sum disbursement repaid over a fixed period with predictable monthly payments. Available with fixed or variable interest rates.
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Bridge Loans
Short-term financing (1-5 years) used to bridge the gap between an immediate capital need and long-term financing. Common for property acquisitions and value-add renovations.
Lines of Credit
Revolving credit facilities that allow businesses to draw funds as needed, pay them down, and draw again. Used for working capital and managing cash flow cycles.
How Commercial Loans Work
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Initial Consultation:
Discuss your business financing objectives with a commercial specialist. We evaluate the project scope, property details, and borrower qualifications to identify the best lending programs. -
Document Collection
Submit business tax returns, financial statements (balance sheet, P&L, cash flow), bank statements, rent rolls (for income properties), and personal financial statements. -
Loan Matching
We match your project to the optimal lender and program from our network. Different lenders specialize in different property types, loan sizes, and borrower profiles. -
Appraisal and Underwriting
A commercial appraisal determines property value. The underwriter reviews business financials, property cash flow, borrower credit, and collateral to finalize the loan decision. -
Committment and Terms
The lender issues a loan commitment with finalized terms including rate, fees, prepayment provisions, and conditions to close. -
Closing and Funding
Legal documents are prepared, title is transferred or refinanced, and funds are disbursed to complete the transaction.
Benefits of Commercial Loans
Large Capital Access
Commercial loans provide the substantial capital that business growth requires, from six-figure equipment purchases to multi-million-dollar property acquisitions.
Equity Building
Owning commercial property builds equity over time while providing stable, predictable occupancy costs compared to leasing.
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Tailored Structures
Loan terms, repayment schedules, and rate structures can be customized to match your business’s cash flow patterns and growth trajectory.
SBA Programs
Government-backed options offer lower down payments (as low as 10%), longer terms (up to 25 years), and below-market rates for qualifying businesses.
Tax Benefits
Interest payments on commercial loans are typically tax-deductible as business expenses. Real estate depreciation provides additional tax advantages.
Who Should Consider a Commercial Loan?
Commercial loans serve business owners and investors who need capital for real estate, equipment, expansion, or operations. If you are purchasing or refinancing commercial property, a commercial mortgage provides long-term financing at competitive rates with the added benefit of equity accumulation.
Small business owners who want to buy rather than lease their operating space benefit from SBA-backed programs that offer lower down payments and longer terms than conventional commercial loans. The SBA 504 program is particularly attractive for owner-occupied properties, with down payments as low as 10%.
Real estate investors targeting multi-family properties with 5 or more units, retail centers, office buildings, or industrial facilities use commercial loans as their primary acquisition and refinance tool. The loan is underwritten based on the property’s income-producing capability, making it accessible to investors with strong property portfolios.
How Does This Compare?
Feature | Commercial | SBA 504 | SBA 7(a) | Bridge Loan |
|---|---|---|---|---|
Speed to Close | 30-90 days | 60-90 days | 45-90 days | 14-30 days |
Collateral | Property | Property + equipment | Varies | Property |
Rate Type | Fixed or variable | Fixed (CDC portion) | Variable (often) | Variable |
Term | 5-25 years | 10-25 years | Up to 25 years | 1-5 years |
Down Payment | 20-30% | 10% | 10-20% | 20-30% |
Loan Amount | $500K - $50M+ | $125K - $5M | Up to $5M | $100K - $25M+ |