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Commercial Real Estate

Loans to help you buy, build, & improve

We offer commercial real estate loans for both owner-occupied and non-owner-occupied investment properties, supporting land development, new construction, building improvements, and business acquisitions across various property types like offices, retail spaces, warehouses, and restaurants.

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Real Estate Loans

Commercial Property Types

Real Estate Loans

  • Available for Owner Occupied & Non-Owner Occupied “investment properties”
  • Loans can be used for land development, new construction, building improvements, & business acquisition
  • Property types include office buildings, retail spaces, warehouses, restaurants, & more
  • Conventional & SBA loan options are available
  • Competitive loan rates & variety of terms with no prepayment penalties
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Commercial Property Types

  • Offices, Retail Spaces, Shopping Centers, Industrial Workspaces, Warehouses, Restaurants, Gas Stations, Assisted Living Centers, Healthcare Facilities, Storage Spaces, Apartments, Condominiums, Hotels, Land, and more.

Business Loan Rates

Rates up to date as of July 4, 2024. Rates subject to change without notice.

All Business LoansTermAnnual Percentage Rate (APR)
Commercial Real EstateCall 801-359-9600 to learn moreCall 801-359-9600 for today's rates
Lines of CreditCall 801-359-9600 to learn moreCall 801-359-9600 for today's rates
EquipmentCall 801-359-9600 to learn moreCall 801-359-9600 for today's rates
VehiclesCall 801-359-9600 to learn moreCall 801-359-9600 for today's rates
Small Business (SBA)Call 801-359-9600 to learn moreCall 801-359-9600 for today's rates

Rates and financing are offered based on applicant’s credit worthiness and the term of the loan. Rates quoted are annual percentage rates (APR).

Frequently Asked Questions

What is a Commercial Real Estate loan?

A loan from a lender to finance the purchase, construction, or refinancing of a property for business use. This type of financing allows the borrower to buy or renovate commercial real estate. Examples of commercial properties include warehouses, factories, office buildings, shopping centers, apartment buildings and multi-use developments. If your business qualifies for a loan, the lender considers the property collateral for the loan. The value of the real estate serves as security for the loan.

Type of Business Real Estate Loans?

When shopping for commercial real estate financing for your company, you should look for a lender that fits your distinctive needs. These real estate loans come with diverse terms and conditions, so it’s important to review the fees, eligibility requirements, available funding amounts, and other considerations when looking at lenders.

What is an SBA Loan?

The U.S. Small Business Administration helps small businesses get funding by setting guidelines for loans and reducing lender risk. These SBA-backed loans make it easier for small businesses to get the funding they need.

How are Conventional & SBA Loans different?

Traditional commercial real estate loans from major financing companies typically offer the most competitive interest rates, highest available amounts, and longest terms. However, they also tend to have the strictest qualification requirements, so your small business should have good credit to apply. SBA loans have backing from the U.S. Small Business Administration. This federal program offers two different loans that companies can use for real estate.

The SBA 7(a) loan is a versatile option that allows both purchase and renovation of commercial properties. Your business can potentially access up to $5 million, payable over 25 years at an interest rate of about 7% to 9.5%. The SBA 504 loan specifically funds real estate, equipment, commercial property, and other major capital purchases. Interest rates range from 4% to 7% for a term of up to 25 years. You can potentially borrow up to $5.5 million with this type of loan. An SBA 504 loan requires a 10% down payment. About 50% of the purchase price comes from a private lender, while the other 40% comes from an investment firm called a certified development company.

What are Short-Term Real Estate Loans?

Bridge loans offer short-term financing for real estate purchases. Typically, the borrower uses this high-interest loan to capitalize on an immediate opportunity. After securing the property, the company can either repay the bridge loan or refinance it into a long-term commercial real estate loan. Short-term real estate loans offer funding of up to $250,000 and terms of three to 18 months. However, interest usually exceeds 10%.

Hard money loans are another short-term option for commercial real estate borrowers. These loans tend to have higher interest rates than traditional and SBA business loans. The lender secures the financing with collateral, such as another piece of property or asset of value.

How to use Commercial Real Estate Loans?

Commercial real estate loans can serve a range of purposes for your growing business. You can buy a new property, purchase land, finance equipment or renovate your firm’s existing properties. In general, business property loans work like other types of mortgages, but it’s important for investors to become familiar with some key differences.

What should you know about qualifying?

For residential real estate loans, individuals can access bank financing for up to 97% of the property value or even 100% in some cases. Commercial real estate loans have a much lower loan-to-value ratio, meaning you can only borrow up to 70% to 80% of the property’s value depending on the total loan amount and other factors. That means small business owners should plan to have a down payment of at least 20% for this type of real estate purchase.

In addition to your business credit score, commercial real estate financing companies will review your debt service coverage ratio. This cash flow measurement looks at your ability to repay the loan amount in question. To calculate your company’s DSCR, divide the total amount of your yearly credit card and debt payments by your company’s yearly net operating income.

Some lenders may also require a small business owner or another company representative to personally guarantee a commercial real estate loan. That means you agree to personally make the monthly payments on the loan if the business goes bankrupt or otherwise cannot pay its real estate debt. You might face this type of decision if you have a new business without a strong credit history or with a low credit score.

When shopping for commercial real estate loans, consider the offerings from American United Federal Credit Union. Though we’ve been in business for decades, we haven’t forgotten our mission to bring underserved members the products and services they need for smart financial management. Get in touch today to learn more about credit union membership in Utah.

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What is an SBA Loan?

The U.S. Small Business Administration helps small businesses get funding by setting guidelines for loans and reducing lender risk. These SBA-backed loans make it easier for small businesses to get the funding they need.

Contact Business Center

Choose from all of our Business Loans

  • Commercial Real Estate
  • Business Equipment
  • Lines of Credit
  • Business Vehicles
  • SBA Loans
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