The 7 Best Commercial Construction Loans

With SBA loans being a key source of commercial construction lending, SmartBiz’s specialization in SBA loans will come in handy for prospective borrowers. SmartBiz will guide applicants through the complex and lengthy SBA loan approval process and may even be able to help expedite it.

SmartBiz offers the following products through its lending partners:

• SBA loans up to $350,000
• Bank terms loans up to $500,000
• Lines of credit up to $150,000
• Custom financing up to $500,000
• ERC refunds

Interest rates for SBA loans range from 10.5% to 11.5%. Term loans have interest rates starting at 8.99%. Custom financing rates start at 6.99%.

SmartBiz’s eligibility requirements are as follows:

• 2 years in business
• Sufficient cash flow to support repayments
• 650 credit score (for SBA loans)

Lendio allows businesses to apply to every lender within its network with a single application. Many of these lenders offer SBA loans. While SBA loan criteria is fairly consistent across lenders, Lendio can help you find one that is eager to work with you.

Lendio offers nearly any type of funding you need for your business, including:

• Short-term loans up to $500,000
• Term loans up to $2 million
• Lines of credit up to $500,000
• Merchant cash advances up to $200,000
• SBA loans up to $5 million
• Equipment financing up to $5 million

Lendio’s rates and fees vary based on product type and the lender you select. Lendio has low-interest options such as SBA loans, as well as more expensive funding like MCAs for borrowers with bad credit or other challenges.

Lendio works with multiple lenders, and each lender has its own set of eligibility requirements for funding. However, Lendio recommends having a credit score of at least 550 to qualify. Additionally, the more revenue, higher credit score, and longer time in business you have, the better odds you have for qualifying for better rates and terms.

Fundbox doesn’t offer what would be considered a typical commercial construction loan. What is does offer is a quick and flexible line of credit and a history of funding smaller construction and renovation projects. If you need a scalpel instead of a hammer, give Fundbox a look.

Fundbox offers lines of credit up to $150,000 with term lengths of 12 or 24 weeks.

Fundbox’s borrowing fee starts at 4.66%. There is no draw fee.

Fundbox’s borrowing requirements are as follows:

• 6 months in business
• 600+ credit score
• $100,000 per year in revenue

Fora Financial’s short-term business loans generally won’t be the best construction solution for most companies. However, they can be a great tool for construction companies that are themselves doing the work. Fora Financial offers high borrowing amounts which can be use to cover cash flow shortfalls during the construction process until the contractor receives payment from its client.

Fora Financial offers short-term loans and merchant cash advances up to $1.5 million with terms of up to 15 months.

Fora Financial’s flat fees range from 10% to 30% of the amount borrowed. An origination fee of 1% – 4% is also charged.

Fora Financial’s borrower qualifications are as follows:

• 6 months in business
• 500+ credit score
• $15,000 per month in revenue

Like Lendio, National Business Capital is an aggregator service, meaning that you’ll apply to multiple lenders through a single application. For commercial construction loans, National Business Capital can provide both medium-term loans and SBA loans, as well as stop-gap solutions for construction companies. One of the biggest selling points for National Business Capital is that you’ll get an assigned account manager to guide you through the process.

National Business Capital offers:

• Medium-term loans up to $5 million
• Business line of credit up to $5 million
• Equipment financing up to $5 million
• SBA loans up to $5 million

National Business Capital’s interest rates start at 7%. Interest rates for SBA loans currently range from 10.5% to 11.5%.

Here are the borrower requirements for National Business Capital:

• 1 year in business
• 580+ credit score
• $120,000 per year in revenue

National Funding is one of the oldest and most established lenders in the business, and has decades worth of experience financing construction companies. Construction companies that need an infusion of cash to manage cash flow, hire more workers, or purchase equipment can quickly get a loan to cover their expenses.

National Funding offers:

• Short-term loans up to $500,000
• Equipment financing up to $150,000

National Funding’s flat fees start at 17%. An origination fee of 1-3% is also charged.

National Funding’s borrower requirements are as follows:

• 6 months in business
• 600+ credit score
• $250,000 per year in revenue

Funding Circle offers some of the better business loan terms in the online lending market. It also offers SBA 7(a) loans, a cost-effective way to fund construction projects with long-term debt.

Funding Circle offers:

• Term loans up to $500,000 with terms up to 7 years
• Lines of credit up to $250,000
• SBA 7(a) loans up to $500,000 with terms up to 10 years

Interest rates for SBA loans currently start at 8%. Interest rates on term loans and lines of credit start at 4.99%.

Funding Circle borrower requirements are as follows:

• 2 years in business
• 660+ credit score