What is the Definition of Commercial Loan?

Commercial Loan

Noun

Definition: A commercial loan is a loan between a business and a bank to fund capital expenditures and/or operating costs. Commercial loans come in two forms - owner-occupied mortgages and investment mortgages. If the property's sponsor(s) use over 50 percent of the building's useable square footage, the commercial loan is said to be a owner-occupied commercial loan. Otherwise the commercial loan is considered to be an investment mortgage. To be considered a commercial loan the property being funded must be zoned commercial and not residential.

Additional Info

Listed below are a few resources that may be beneficial in your understanding of commercial loans and how they work.

How To Get A Commercial Loan

For information on how to qualify for a commercial loan please visit our 5 steps to get a commercial loan article. For other questions in the requirements of getting a commercial loan, you may also visit our faqs page, or send us a message through our contact form

What Are the Commercial Loan Rates?

For current commercial mortgage rates you can visit our commercial loan rates page or our apartment loan rates page if the property is multifamily. 

What Are the Types of Commercial Loans?

The types of commercial loans available are listed as follows:

What Type of Loan Do I Qualify For?

To find out what type of loan you may qualify for, you may visit our loan finder tool

How do I Apply for a Commercial Loan?

To apply for a commercial loan, simply fill out our free quote request. You may also use our free commercial loan forms during the process to help expedite your loan application.

Pages that Mention Commercial Loan

Conventional Commercial Loans


Conventional Commercial Loans News Posts

Website owners and webmasters affiliate program - Commercial Loan Direct


Affiliates and referrals for webmasters and website owners program by Commercial Loan Direct - join one of the best paid programs on the internet

Investment Property Commercial Loans - Real Estate Mortgages


Investment property commercial real estate loans and mortgages by the #1 ranked online mortgage banker.

Types of Commercial Loans


Learn about the different types of commercial loans and real estate lending programs offered by CLD with our loan finder. CLD provides Fannie Mae, Freddie Mac, FHA, CMBS, Conventional, Insurance, USDA, SBA, Bridge, and Construction Loans.

NOI Calculator Commercial Loans


NOI is the annual income generated by a property after taking into account all income collected from operations, and deducting all expenses incurred from operations. Use our calculator toy calculate your Net Operating Income.

SBA 504 Loans - SBA 504 Refinance - View Interest Rates


SBA 504 loans from Commercial Loan Direct. Offering refinancing, lowest rates and lowest closing costs

How to Prepare a Financial Package For a Commercial Loan


Not all Lenders or loan programs are created equal and each program has it’s own specific guidelines. That being said, here is a general list of the items you should consider preparing in advance of contacting Lenders for a loan quote*:

Commercial Loan Definitions


Commercial Loan Definitions News Posts

CMBS Commercial Loans


CMBS loans can be used for the purchase or refinance for Commercial Real Estate properties, including Hotels, Industrial, Office, Multi-family, Medical, Mixed-Use, Retail, and Self-Storage

Construction Commercial Loans


Commercial Loan Direct offers conventional construction loans for commercial real estate properties, SBA-504 companion mortgages for transactions that are approved via the Small Business Administration, and FHA loans for apartment complexes construction. Property types eligible for construction financing are as follows: industrial, medical, mixed use, multifamily, office, retail, as well as self-storage.

Other Definitions

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