Commercial Real Estate Loans
You may need to finance or refinance a commercial or investment property. FirstBank commercial mortgage loans are typically structured as a 20 or 25 year amortization with a 10 year maturity. The interest rate for commercial mortgage loans is set daily and is available from your FirstBank loan officer.
At FirstBank, we understand that each loan applicant has different needs. We do not have a “one-size fits all” loan structure. Instead, we focus on listening to your ideas and coming up with a solution. We provide one-on-one customer service that you cannot get at larger institutions.
Owner Occupied Commercial Real Estate Financing
If you plan on occupying 51% or more of the property’s space, you may qualify for an Owner Occupied Real Estate loan. And good news for you; your business can enjoy lower rates and fees on these types of loans. In addition, we offer an Owner Occupied Commercial Line of Credit program, which can provide flexibility and opportunities for growth by assisting with working capital needs, seasonal variations, and expansion opportunities.
Installment Loan Terms:
- Low interest rates
Line of Credit Terms:
- Up to 75% loan to value
- Wall Street Journal Prime + 0% variable interest rate
SBA 504 Loan Program
Preserve your cash while growing your business. FirstBank offers up to 90% Loan-to-Value financing for certain owner-occupied commercial mortgage loans. The SBA 504 loan structure typically allows a customer to borrow 90% of the total acquisition costs of a property, plus other costs associated with necessary improvements to the property. Typically, FirstBank provides 50% of these total costs via a commercial real estate loan and the SBA provides a loan for 40% of total costs. The borrower is required to contribute the remaining 10% of total costs.
Eligible uses for the program include:
- Purchase, renovation or expansion of existing building
- Purchase land/construct new building(s)
- Purchase machinery and equipment
There are several reasons why a borrower might choose to use an SBA 504 loan rather than a standard commercial real estate loan. Typically, standard commercial loans require the borrower to contribute 25% of the purchase price of the building, plus closing costs and the cost of equipment. An SBA 504 loan requires less cash towards the purchase, which increases the business’ ability to buy the property, and allows it to retain cash for working capital. Additionally, the bank often offers a lower interest rate when financing a smaller percentage of the purchase price.
Visit our SBA 504 page to learn more.
To learn about other SBA loans for your small business, visit our SBA 7(a) page or talk to a lender today.