Understanding the Types of Commercial Loans: CMBS, Bridge, Bank, Agency, SBA & USDA.

When you're investing in or refinancing commercial real estate, choosing the right type of loan is critical. Each loan product comes with its own set of terms, benefits, and ideal use cases. At Commercial Partners of Texas (www.amerimort.com), we help clients navigate the best financing options tailored to their project and long-term goals.

In this guide, we’ll break down the most common types of commercial real estate loans: CMBS loans, bridge loans, traditional commercial bank loans, agency loans (Fannie Mae and Freddie Mac), SBA loans, and USDA loans.

1. CMBS (Conduit) Loans

CMBS loans, also known as conduit loans, are packaged and sold as mortgage-backed securities to investors. They are ideal for income-producing properties like office buildings, shopping centers, multifamily apartments, and hotels.

Key Benefits:

• Fixed interest rates

• Non-recourse structure (borrower not personally liable)

• Higher leverage (up to 75% LTV)

• Longer terms (typically 5, 7, or 10 years)

Best For: Investors looking for long-term, fixed-rate financing on stabilized commercial properties.

2. Bridge Loans

Bridge loans are short-term, interest-only loans used to "bridge the gap" between a property's current state and its stabilized value or long-term financing.

Key Benefits:

• Quick closing

• Flexible underwriting

• Can fund renovations, lease-ups, or repositioning

• Interest-only payments during the term

Best For: Value-add projects, properties in transition, or investors needing speed and flexibility.

3. Commercial Bank Loans

Traditional commercial real estate loans from banks are versatile and widely available. Banks offer both short- and long-term loans with either fixed or floating interest rates.

Key Benefits:

• Relationship-based lending

• Competitive rates

• Recourse and non-recourse options

• Construction and term loan availability

Best For: Local or regional investors seeking personalized lending relationships and standard underwriting.

4. Agency Loans (Fannie Mae & Freddie Mac)

Agency loans, offered through Fannie Mae and Freddie Mac, are specifically tailored for multifamily properties. These loans offer highly competitive terms and are government-sponsored.

Key Benefits:

• Very low interest rates

• Long amortization periods (up to 30 years)

• Non-recourse options

• Green and affordable housing incentives

Best For: Multifamily investors seeking stable, long-term financing on qualified properties.

5. SBA 7(a) and SBA 504 Loans

The Small Business Administration (SBA) backs loans that help business owners purchase or refinance owner-occupied commercial properties.

• SBA 7(a): Used for working capital, real estate, or equipment.

• SBA 504: Designed for real estate and equipment with fixed rates and long terms.

Key Benefits:

• Low down payments (as little as 10%)

• Longer repayment terms

• Competitive fixed rates

Best For: Small businesses looking to acquire or refinance their own office, retail, industrial, or medical space.

6. USDA Business & Industry (B&I) Loans

USDA loans support rural development by offering financing for businesses located in eligible rural areas. These loans can fund commercial real estate, equipment, or working capital.

Key Benefits:

• Up to 80% LTV

• Government guarantee reduces lender risk

• Long terms and low interest rates

• Can finance startups or acquisitions

Best For: Businesses or investors operating in designated rural zones.

Final Thoughts

The right commercial loan can make or break a real estate deal. Whether you're buying an apartment complex, renovating a retail center, or financing a rural business, Commercial Partners of Texas is here to guide you.

Need help finding the right loan for your commercial project?📞 Call us at 832-607-1113 or 📧 email george@amerimort.com for a free consultation.

👉 Visit www.amerimort.com