a commercial real estate building

AVANA CUSO Offers Professional Guidance on Applying for Commercial Real Estate Loans

Experienced commercial lender AVANA CUSO carefully guides brokers, credit unions and their borrowers through the commercial real estate loan process. Whether it’s finding the best rates and terms or simply understanding what a property is worth, AVANA CUSO has all the know-how for those looking to secure a commercial real estate loan.

What are Commercial Real Estate Loan Rates & Terms?

Commercial real estate loan rates can range from 2.2% to 18%, depending on the type of loan and the lender. AVANA CUSO offers competitive interest rates starting at 3.5%.

Commercial real estate loan terms generally start at 12 months and can run up to 10 years. AVANA CUSO provides loan terms ranging from five to 10 years, with amortization of up to 30 years.

Commercial real estate loan sizes can vary anywhere from $500,000 to north of $25 million depending on the asset. AVANA CUSO generally funds loans around $2.5-$5 million, but has the network to facilitate a larger loan, around $25 million. The average loan to value (LTV) ratio spans 60% to 85%, with AVANA CUSO’s maximum LTV at 75%.

6 Steps to Securing a Commercial Property Loan

To get a commercial property loan, take these six steps:

  1. Provide all necessary information including business history, cash flow, personal and business tax returns, financial statements, assets and liabilities, credit history and collateral information to your credit union or broker.
  2. The credit union or broker then shares this information with AVANA CUSO, which reviews the data to determine if the borrower and property qualify. During this analysis, loan terms are set.
  3. An appraisal, environmental inspection and commercial property inspection are conducted to value the property.
  4. The loan goes through the underwriting and credit approval process before it is sent to credit unions for review.
  5. The credit union reviews all documents. If approved, loan documents are drafted.
  6. Finally, AVANA CUSO closes the loan and the credit union funds it.

What SBA Real Estate Loans Are Available?

There are two Small Business Administration (SBA) real estate loans available: SBA 504 loan and SBA 7(a) loan.

Small business owners interested in long-term, fixed-rate financing of up to $5 million should apply for SBA 504 loans. To be eligible for this loan, a business must be a for-profit institution within the United States, have a net worth of less than $15 million and have an average net income of less than $5 million after federal income taxes two years before submitting an application.

The SBA 7(a) loan is the most common of the two loan programs and is used to assist small businesses with special requirements. The 7(a) loan can be used when real estate is part of a business purchase, as long- and short-term working capital, to refinance current business debt or purchase furniture, fixtures and supplies.

To be eligible for this type of commercial loan, businesses must be for-profit, considered a small business, operate in the United States, have invested equity, use personal assets before seeking finance, demonstrate a need and more.



Established in 1998 and headquartered in Simi Valley, CA, AVANA CUSO offers competitive commercial real estate loans. We partner with credit unions and connect them to investors across the United States. Additionally, we uniquely support and guide our partners through the entire commercial real estate loan process. AVANA CUSO is a proud member of the AVANA Family of Companies.