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

Financial Tools, Mortgage Calculators, Definitions, and Forms.

Commercial Loan Direct - Financial Tools. Mortgage calculators, definitions, forms, etc.

Commercial Loan Direct - News - Media Room

Commercial Loan Direct News. Our media room is the place where we share our corporate news.

Usda Commercial Loans

Usda Commercial Loans News Posts

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.

Commercial Loan Direct - Equipment Loan Application

Equipment Loan Application - Commercial Loan Direct

Commercial Lending Specials - Lowest Commercial Rates

Commercial Loan Direct's loan specials and lowest commercial real estate interest rates.

Commercial Loan Direct - Frequently Asked Questions

Commercial Loan Direct - Frequently Asked Questions

Commercial Loan Direct - Getting Started - Apply for a commercial loan, apartment loan or multifamily mortgage

Apply for a commercial loan, apartment loan & multifamily mortgage. Lowest fixed rates available. No points and low closing fees. Apartment financing simplified.

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*:

5 Steps To Get A Commercial Loan - How to Get a Commercial Loan

Other Definitions