Think "commercial loan," and maybe huge skyscrapers or sprawling industrial parks come to mind. But what about the local bakery buying its building, the dentist expanding her office, or the investor purchasing a small apartment complex? That's where Small Balance Commercial Loans (SBCLs) come in!
These are simply commercial real estate loans for amounts typically under $5 million (though the exact cap varies by lender). They bridge the gap between residential mortgages and massive corporate financing, providing accessible capital for small to mid-sized businesses and property investors.
Instead of navigating the often slow and complex process designed for giant loans at big banks, SBCLs offer a more streamlined path to finance buying, refinancing, or renovating smaller commercial properties. Khojie specializes in connecting borrowers with lenders who excel in this niche, making the process smoother and potentially faster.
Good news! These loans aren't just for seasoned tycoons. They're accessible to a wide range of borrowers:
Lenders typically evaluate:
💡 Khojie Advantage: Even if you don't tick every box perfectly, our network includes lenders with varying risk appetites. We help package your application to highlight strengths and find the right financing partner, potentially including options like SBA 504 loans which can offer lower down payments.
Compared to other financing, SBCLs often hit the sweet spot:
Need funding super fast for a quick flip? A Hard Money Loan might be better. Need capital without tying it to real estate? Explore Working Capital Loans. But for most small commercial property financing, SBCLs offer a balanced solution.
SBCLs are versatile and cover a wide range of income-producing or owner-occupied commercial properties:
| Property Type | Examples |
|---|---|
| Office Buildings | Small professional offices, medical/dental clinics |
| Retail Spaces | Standalone shops, strip mall units, restaurants |
| Industrial/Warehouse | Light manufacturing, distribution centers, storage facilities |
| Multifamily Housing | Apartment buildings (typically 5+ units), student housing |
| Mixed-Use Properties | Buildings with ground-floor retail and upper-floor apartments/offices |
| Special Purpose | Daycares, auto repair shops, self-storage (depending on lender) |
Lenders assess the property's condition, location, and market viability. A well-maintained property in a desirable area is always easier to finance.
Ready to take the plunge? Here's a simplified roadmap:
Gather key documents upfront to speed things up:
Instead of applying to multiple banks, start with us. We'll discuss your needs and leverage our network to identify the best potential lenders and loan programs for your specific situation, saving you time and effort.
We guide you through the chosen lender's application. They will perform due diligence, including property appraisal and environmental checks.
Once approved, you'll review the loan commitment and proceed to closing. This typically takes 30-45 days from application submission with an efficient lender.
🚀 Khojie Tip: Be responsive and provide requested documents promptly to keep the process moving smoothly. Transparency is crucial!
Generally, small balance commercial loans fall under $5 million, but Khojie works with various lenders, offering flexibility. We focus on finding the right fit for properties often considered 'too small' by large institutions but perfect for entrepreneurs and local investors.
Traditional banks often have lengthy, complex processes even for smaller commercial deals. Khojie leverages technology and a network of specialized lenders focused on the small balance market, enabling streamlined underwriting and potentially faster closing times (often 30-45 days vs. 60-90+ days at big banks).
Yes, absolutely! Refinancing existing commercial debt (especially higher-interest debt) into a small balance loan with better terms is a common and smart strategy to improve cash flow or free up capital. Learn more about our Debt Refinance Loans.
While good credit (often 680+) helps secure the best rates, it's not always the only factor. Lenders also heavily consider the property's value and income potential, the business's health, and your overall financial picture. Khojie can help navigate options even with less-than-perfect credit.
A wide range, including office buildings, retail stores, small warehouses, light industrial spaces, multifamily properties (like apartment buildings), and mixed-use buildings.
Small balance commercial loans are powerful tools for growth. Don't let the complexities of traditional lending hold you back. Khojie makes securing the right financing simpler and faster.
