What is a commercial real estate loan and how does it work?
A commercial real estate loan is financing used to buy, build, or refinance property for business purposes, an office, warehouse, storefront, restaurant space, or industrial building, with the property itself securing the loan. Deals typically range from $100K to $10M+. Every year you rent, you're paying down someone else's mortgage; owning converts that expense into equity. Quordx Capital connects buyers with CRE lenders, banks, SBA-approved lenders, and specialty lenders, from a 50+ lender network through one free application.
Part of our guide to Business Loans.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
How commercial real estate loans work
The property is the collateral, so underwriting centers on two questions: what is the property worth (an appraisal answers this), and can your business afford the payment (your financials answer this). Expect a down payment: CRE lenders rarely finance 100%. The standout option for owner-occupied property is the SBA 504 loan: up to $5 million (more for certain manufacturing and energy projects), structured through a CDC plus a bank, typically 10% borrower contribution (15-20% for special-use properties or startups), with fixed rates for the life of the loan tied to the 10-year Treasury. SBA publishes 504 rates monthly. SBA 7(a) loans up to $5M can also fund real estate with more flexibility on use. Conventional CRE loans close faster than SBA but usually want stronger financials and larger down payments. Plan on a longer process than other business loans: appraisal, environmental review, and title work add weeks.
CRE financing options
Commercial real estate financing: $100K-$10M+, conventional. Best for established businesses or investors who want speed and have the down payment.
SBA 504 loan: Up to $5 million (more for certain manufacturing and energy projects), ~10% down, long fixed terms at rates SBA publishes monthly. Best for owner-occupants buying or building their own space.
SBA 7(a) loan: Up to $5M; can combine property with working capital or other uses. Best for deals that mix real estate with broader business needs.
Estimate your funding
Answer a few questions about your business to see a likely range.
How Quordx Capital Works
Start with a single application, around 10 minutes, and upload financials including bank statements, business tax returns, and P&L/balance sheet for a deal this size. Quordx Capital's matching process pairs your deal with 3-7 of the 50+ network lenders who actively fund CRE in your range, ranked by likelihood of approval. Initial lender responses typically come within 24-48 hours; CRE closings then follow the appraisal and title timeline.
What to Expect
CRE takes longer than working capital: that's honest. The down payment is the other hurdle, and the SBA 504's ~10% contribution is the lowest entry point most owner-occupants will find. You'll get full transparency on rates, fees, and timelines from every matched lender, and Quordx Capital costs you nothing at any stage, if the deal doesn't support the debt, you'll hear that plainly rather than getting strung along.
Apply for Funding
No obligation · Initial inquiry doesn't impact credit · Takes about 10 minutes
Written by
Cody Dreis
Founder, Quordx Capital
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Quordx Capital is a business funding broker, not a lender. Lenders make every credit decision and set the rate, fees and terms, and not every business qualifies. Quordx may be paid by a lender when a deal funds. Full disclosures