What is the Definition of Commercial Loan?

Commercial Loan


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

Commercial Loans - Apartment Mortgages - Online Commercial Lender

Commercial loans and apartment mortgages nationwide. Save with low interest rates, no points, and low closing costs. Offering apartment loans and commercial property financing nationwide.

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.

Conventional Commercial Loans

Commercial loans can take 2 different forms – owner-occupied mortgages and investment mortgages. When the collateral is owner-occupied, the property’s sponsor(s) use over 50% of the building’s useable square footage for their personal businesses. Any other use makes the collateral investment property. It is important to note that in order to securitize a commercial loan properly Commercial properties must be zoned appropriately.

Bridge Commercial Loans

Bridge Commercial Loans News Posts

Commercial Loans

Commercial Loans News Posts

Native American Commercial Loans

As one of the most under-served demographics of the United States, we believe the Native American people are long over-due to take their rightful place in American business.

Commercial Loan Definitions

Commercial Loan Definitions News Posts

Commercial Loan Application Process

Commercial Loan Application Process News Posts

SBA 504 Loans - SBA 504 Refinance - View Interest Rates

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

Industrial Property Commercial Loans - Industrial Commercial Loans & Warehouse mortgages

Warehouse loans, industrial loans and industrial property lending by Commercial Loan Direct. Low rates and closing costs.

Other Definitions