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By: omunoz
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Commercial Construction Loan: A Complete Guide

commercial construction loan is a great option if it’s time to give your small business a makeover, expand your office, add value, and attract new customers.

You could have something more ambitious in mind, like taking your brand to new places. Or maybe you just need capital to be able to finance a client’s construction project.

Those goals don’t need to stay as dreams; you can make them a reality with a business loan. But not just any loan, a commercial construction loan. 

If your project involves building from scratch or renovating a commercial property, you can get the money you need!

You may be wondering what the construction loans rates are or what requirements must be met to access one of these loans. Do not worry; we’re here to clear it all up—also, we are sharing with you our list of the top construction loans.

People learning abour commercial construction loans accross a tablet

What is a commercial construction loan?

You need a commercial construction loan if you require capital to remodel or start the construction phase of your business place.

With the funds from this loan, you can renovate spaces and buy the land to start a commercial building, cover all project costs, and pay for materials and labor in the construction process.

These types of loans are usually used by construction companies seeking financing for one of their projects but are also used by individuals who want to finance a business construction project.

These financial products are the best alternatives to finance a construction project, and you can get one.

Commercial construction loan requirements

If you wonder how to get a construction loan, you will need to have some specific requirements and wait while the lender evaluates your application.

The whole process can take weeks or even months. These are the documents that traditional or online lenders commonly require:

  • A business plan.
  • The projections with the profits of your business.
  • Personal and company financial documents.
  • The estimated value of the entire project, plans, designs, and all its technical specifications.

Of course, there are some lenders out there that don’t take months to approve your loans; you can even get your cash in a matter of days.

Keep reading to find out which ones are the top commercial construction loans out there (and find out which lender has few requirements and will borrow money very fast!).

Five workers building in a new construction project

Commercial Construction Loan Interest Rates

Before continuing, you can look at how construction loans work and seek some of the market’s best commercial construction financing options.

Let’s see what the interest rate on a construction loan is:

Loan amountInterest ratesFeesTime to payAccept ITIN?No credit history accepted?Time to fund
SBA (CDC/504)Up to $5 millionVaries2.25%Up to 20 yearsNONO1-2 months
SBA 7 (a)Up to $5 million7.75% – 10.25%Up to 3.5%20-25 yearsNONO2-3 months
Wall Street Funding$3,000 to $500,0007.9% – 45%4 to 36 monthsNOYES3 days
BFS Capital$5,000 to $750,000They use factor ratesDocumentation and origination fees6 – 18 monthsNONO2 business days
Camino Financial$5,000 to $400,000Starting at 12% (annual interest rate)5% – 6.99% origination fee24-60 monthsYESYES2-4 days

Top Commercial Construction Loan Lenders

Now that you’ve decided to get a loan, it’s time for you to learn about some loan options or types of commercial construction loans are available in the market.

SBA CDC/504 Loan Program

The SBA offers financing through Certified Development Companies (or CDC), and banks.

The SBA guarantees 40% of the financing, the bank ensures another 50%, and the borrower must provide the remaining 10%.

Their loans

With these SBA loans, you can apply for a maximum of $5 million. The term to pay the debt can be from ten to twenty years. Interest rates are based on those established by United States Treasury.

Additional costs, such as CDC and bank service fees, are included.

The CDC/504 Loan program ensures benefits such as 90% project financing and more extensive loan repayments. The construction loans rates for this program are fixed interest rates.


An initial payment of between 10% and 30% has to be made, and a guarantee is required.

You need to have a Social Security number (SSN).

SBA 7(a) Loan Program

This one is the most popular SBA small business construction loans since they can use the capital for multiple purposes.

Their loans

With this program, you can access funds of up to $5 million, and the repayment terms can range from 10 to 25 years.

The construction loan interest rates are between 7.75% and 10.25%, depending on the amount you apply for.


Usually, you have to make a down payment of 10% or 20% of the loan and offer collateral. The 7(a) loan can be approved within two to three months.

You need a Social Security number to apply.

SBA Loans: does your business qualify?

Dollars obtained from a commercial construction loan

Wall Street Funding

This lender is the ideal solution for businesses that are just beginning. It has been on the market since 2009 and has given $100 million in loans to small businesses.

Their loans

Their commercial construction loans work like cash advances secured by outstanding accounts receivable, which benefits certain businesses looking for quick financing. The funds can range from $3,000 to $500,000.

As for the construction loans rates it offers, they have interests between 7.9% and 45%. Other terms are disclosed once the loan is in the pre-approval process.

If your request is accepted, you will receive the funds in 3 days tops, and you can use them for any purpose.

This lender does not charge upfront fees or compound interest.


Wall Street Funding offers loans to different types of industries, specializing in small and medium-sized companies with low credit scores.

You need an SSN to apply.

BFS Capital

With more than a decade in the market, this lender relies on technology and data science to offer financing options to small businesses.

Their loans

BFS Capital has short-term commercial loans and cash advances, starting at $5,000 and up to $750,000. They don’t charge processing fees, but a fixed fee according to the size of the loan.

While they are not upfront about how much they charge, BFS Capital uses factor rates instead of interest rates (just like MCAs), which, for a loan of 12 months range from 1.20 to 1.35.

Although many details are only specified after the loan is approved, the terms can range from 6 to 18 months. BFS Capital loans are paid weekly or daily, they don’t offer monthly payments.

Monthly payments are better than weekly or daily ones.


To apply for a commercial construction loan, your business must have been operating for more than two years and earn at least $12,000 monthly. You can receive the funds in two business days.

A requirement to apply is to have an SSN.

An incredible alternative: Camino Financial

For years we have been a reliable alternative for hundreds of business owners that are seeking support and financing for their small business.

Our goal is to provide the funds business owners need to succeed. When you complete our application, you’ll know instantly if you prequalify!

Camino Financial corporate logo


We offer some business loan options between $5,000 to $400,000, and our requirements are easy to meet. Your business must have been operating for 9 months and be earning $30,000 in gross annual sales.

Our interest rates are fixed, so you won’t be surprised when paying your loan. We also offer monthly payments for your convenience.

How to get construction financing

We have minimum requirements:

  • Your business must’ve been in operation for 9 months
  • Make $30,000 annually
  • We don’t require a minimum credit score

You can apply even if you only have ITIN.

We’ll approve your loan even if you don’t have a credit history.

With us, you’re like with family

From the moment you’re approved at Camino Financial, the lending process can take between 2 to 10 days to receive your funds. Additionally, after 8 timely payments, you can graduate to a better loan with better conditions, like a longer payment term.

Happy director for obtain a commercial construction loan

Grow your business with a commercial construction loan

If you are ready to start a commercial construction project, you should apply for a commercial construction loan. With the capital, you can buy land, pay for its conditioning, acquire materials, and pay for labor.

At Camino Financial, we don’t leave any businesses behind; we can give you the funds you need to develop your renovation or construction project.



Check if you
qualify for a loan