Hard Money Loans
Data driven hard money lending. Get your loan in under 10 minutes
Small Balance Commercial Real Estate Loans
Fast, Flexible Funding for Your Next CRE Investment
New Silver is proud to introduce our Commercial Real Estate loan offering — purpose-built for experienced investors seeking short-term financing solutions. Whether you’re acquiring, rehabbing, or refinancing a property, our program provides the leverage, speed, and simplicity you need to grow your portfolio.
- Multifamily
- Mixed-Use
- Industrial
Product Highlights
(Loan-to-Cost)
(Loan-to-After-Repair-Value)
SOFR+ 6.00% – 7.50%
SOFR+ 4.00% – 5.00%
Eligible Transactions
- Purchases
- Purchases with Rehab
- Rate-and-Term Refinances
Eligible Property Types
- Multifamily
- Mixed-Use
- Industrial
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A small balance commercial loan is a type of commercial real estate loan designed to finance lower-cost commercial properties, typically ranging from $250,000 to $5 million. Also known as a small balance commercial mortgage, this option appeals to commercial real estate investors and small business owners who need flexible financing solutions without the red tape of traditional lending.
These loans can be used to purchase or refinance a variety of commercial property types, including multi-family housing, office buildings, retail spaces, and light industrial facilities. They’re also ideal for funding business expansions or property renovations, offering a simplified loan process that supports long-term cash flow.
How Small Balance Commercial
Real Estate Loans Work
Small balance commercial loans tend to be more flexible and easier to qualify for than traditional commercial real estate loans. They are a solid option for commercial real estate investors and business owners who might not meet the strict criteria of conventional financing, like those with limited credit history or smaller down payments.
One of the biggest advantages is that these loans can often be tailored to fit your specific situation, with adjustable terms, amortization schedules, and repayment plans. Plus, the application process is usually more straightforward, with less paperwork and quicker decisions.
Property Types Covered By
Small Balance Commercial Loans
1. Multifamily Properties
These include apartment buildings, triplexes, and other rental properties with five or more units. Small balance commercial mortgage options are a popular way for real estate investors to finance multifamily properties, especially when purchasing or refinancing mid-sized buildings that are too big for residential loans but too small for institutional financing.
2. Mixed-Use Developments
These properties combine commercial and residential elements, like a building with ground-floor retail and apartments above. Lenders often view mixed-use projects favorably, especially when they’re in walkable, urban areas, making them a strong candidate for a small balance commercial mortgage.
3. Light Industrial Properties
These include flex spaces, small manufacturing facilities, and warehouses that support assembly, distribution, or light production. Since they require less infrastructure than heavy industrial buildings, they’re a great fit for small balance commercial loans aimed at smaller operations or niche markets.
Who Can Apply For A
Small Balance Commercial Loan?
Small balance commercial loans are especially valuable for commercial real estate investors and small business owners who need accessible, flexible capital. These loans are designed for financing smaller-scale commercial properties, making them ideal for borrowers who:
- Don’t meet the strict income or credit requirements for traditional CRE loans
- Want longer loan terms with predictable, fixed interest rates
- Are self-employed or have variable income streams which complicates underwriting
- Want to diversify an investment portfolio by adding commercial property to the mix
- Are funding a renovation, expansion, or repositioning project
Due to the fact that small balance commercial mortgages often involve a more streamlined application and approval process, they’re an attractive choice for borrowers who prioritize speed, flexibility, and tailored financing solutions over one-size-fits-all traditional loans.
How To Ensure Your Application Is Approved
Preparation helps streamline the approval process. Before applying, it is important to understand program requirements such as leverage limits, property occupancy, rent roll expectations, and the scope of any planned improvements.
Strong sponsorship, organized documentation, and a clearly defined business plan help support a smoother review process and faster execution.
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Commercial Real Estate Loan Resources
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