What's the lowest-rate way to buy commercial property?

For owner-occupied property, SBA 504 typically offers the lowest rates — its CDC portion is around 5.6%–6.0% in 2026 on long terms — at the cost of more paperwork and a longer process.

How much down payment do I need?

It varies by program and use. SBA 504 can require as little as 10% for qualifying owner-occupied purchases; conventional investment-property loans usually require more.

Can I refinance existing commercial property?

Yes. Refinancing can lower your rate or term, or free up equity. The right program depends on whether the property is owner-occupied and your goals.

How long does commercial real estate financing take?

Weeks to months, especially for SBA-backed loans, because property appraisal and underwriting add steps beyond a standard term loan.

WithFunded › Commercial Real Estate

Commercial Real Estate Loans: long-term, secured property financing

Commercial real estate loans finance the purchase, refinance, or improvement of business property. They're secured by the property, carry the longest terms in small-business financing, and — through SBA 504 — some of the lowest rates.

A WithFunded guide · Rates as of June 2026 · Updated quarterly

Quick facts

Best for: Buying, refinancing, or improving business property
Collateral: The property itself
Terms: Long — up to 25 years via SBA 504
Rate basis: SBA 504 CDC portion from ≈5.6%–6.0%; conventional varies
Funding speed: Weeks to months
Credit fit: Stronger profiles and a down payment typically required

Owner-occupied vs. investment property

The financing splits on how you'll use the property. Owner-occupied commercial real estate — where your business operates from the building — qualifies for the most favorable programs, including SBA 504. Investment property you lease to others is financed conventionally, usually at higher rates and with a larger down payment.

What long-term property financing looks like

Commercial real estate uses long amortizations, which keeps monthly payments manageable on large balances. The SBA 504 CDC portion runs roughly ≈5.6%–6.0% on 10–25 year terms. For illustration, here are amortized payments at a representative band across long terms:

Amount	120 mo	240 mo	300 mo
$250,000	$3,033–$6,590	$2,091–$6,267	$1,930–$6,254
$500,000	$6,066–$13,181	$4,182–$12,533	$3,859–$12,508

Illustrative amortized payments at a representative 8%–30% APR band across 10/20/25-year terms; commercial real estate rates are typically far below the high end of this band. WithFunded calculation.

Why SBA 504 is the standout for owner-occupied property

For owner-occupied real estate, SBA 504 pairs a conventional first mortgage with a below-market CDC second, producing some of the lowest effective rates available to a small business — in exchange for documentation and a longer timeline.

Frequently asked questions

What's the lowest-rate way to buy commercial property?: For owner-occupied property, SBA 504 typically offers the lowest rates — its CDC portion is around 5.6%–6.0% in 2026 on long terms — at the cost of more paperwork and a longer process.
How much down payment do I need?: It varies by program and use. SBA 504 can require as little as 10% for qualifying owner-occupied purchases; conventional investment-property loans usually require more.
Can I refinance existing commercial property?: Yes. Refinancing can lower your rate or term, or free up equity. The right program depends on whether the property is owner-occupied and your goals.
How long does commercial real estate financing take?: Weeks to months, especially for SBA-backed loans, because property appraisal and underwriting add steps beyond a standard term loan.

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Payment figures are illustrative WithFunded calculations at a representative band; SBA 504 rates are from the U.S. Small Business Administration (Jan 2026). Commercial real estate rates are typically well below the high end of the representative band.

Disclaimer. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Everything on this page is a representative example only — not an offer or a commitment to lend, and not financial advice. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.