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AVANA CUSO Breaks Down the Most Popular Commercial Real Estate Loans Available

As one of the country’s top commercial lenders catering to credit unions and their borrowers, AVANA CUSO offers a variety of business loans ranging in size from $2 to $25 million. Each of AVANA CUSO’s commercial real estate loans is customized to the borrower to ensure they’re positioned for long-term business success.

What are the Different Types of Commercial Property Loans?

AVANA CUSO offers four common types of commercial real estate loans in a variety of asset classes, including retail projects, multi-family housing, office buildings, healthcare facilities, assisted living properties and more.

Traditional/Term Loan

A term loan, also known as a traditional commercial mortgage, is similar to a residential mortgage, except it typically offers shorter terms. AVANA CUSO’s conventional business financing option generally has terms of five to 10 years with amortization of up to 30 years.

SBA Loan

The Small Business Administration (SBA) offers two loan programs: SBA 7(a) loans and SBA 504 loans. AVANA CUSO offers the SBA 504 1st Mortgage loan to ensure small business owners have the opportunity to own their building with a reduced down payment and long-term fixed rate.

Did you know – effective July 29, 2021 – you can now refinance SBA 504 loans? Business owners can save money by refinancing existing conventional loans, SBA 7a loans and SBA 504 debentures. This new rule was just enacted by the US Small Business Administration (SBA) to better meet the debt refinancing needs of small businesses.

Bridge Loan

Bridge loans are short-term lending options typically used by small business owners waiting for long-term financing approval or looking to flip commercial properties. Repayment terms are generally six months to three years.

Construction Loan

AVANA CUSO offers commercial construction loans to businesses interested in taking their business to the next level by building new construction or reconstructing old structures. AVANA CUSO experts assist through every step of the process to ensure projects are completed on time and on budget.

What are Average Commercial Real Estate Loan Rates?

Typical commercial real estate loan rates range from 2.2%-18% depending on the type of commercial real estate loan you choose, your financial qualifications and credit score, and the type of project you’re looking to finance. AVANA CUSO offers competitive rates starting at 4.25%.

Typical Commercial Mortgage Sizes

Commercial mortgages typically start at $1 million to $5 million. For instance, bridge loans start at approximately $1 million, while construction loans typically begin at $3 million. AVANA CUSO can provide funding for commercial projects up to $25 million.

Commercial Real Estate Lending Average Loan-to-Value (LTV) Ratios

Loan-to-value ratios are used to assess the risk the commercial lender may incur and determine the down payment amount. High LTVs are considered higher risk loans and generally have high interest rates. LTVs typically range from 60% to 90%, with ratios 80% and under being considered lower risk. AVANA CUSO has a maximum LTV of 75%.



Established in 1998 and headquartered in Simi Valley, CA, AVANA CUSO offers competitive and collaborative commercial loans. We partner with credit unions and brokers, and connect them to investors across the United States. Additionally, we uniquely support and guide our partners through the entire full lifecycle of the loans, including choosing and customizing the right type of commercial real estate loan for the borrower’s needs. AVANA CUSO is a proud member of the AVANA Family of Companies.