How much downpayment is needed for a commercial loan?

Last updated: November 23, 2025

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For most commercial real estate loans, lenders typically require a down payment of 20% to 30% of the property’s purchase price.

Here’s the breakdown:

  • SBA 7(a) loans: Usually 10% to 15% down (sometimes higher depending on borrower risk).
  • SBA 504 loans: Often 10% down, with 50% financed by a bank and 40% by a Certified Development Company (CDC).
  • Traditional bank loans: Usually 20% to 30% down.
  • Commercial bridge loans / private lenders: Can be more flexible, but higher interest and fees apply.

👉 The exact amount depends on:

  • The type of lender (bank, credit union, SBA, private).
  • Your creditworthiness and business history.
  • The property type (office, retail, multifamily, etc.).
  • Whether it’s owner-occupied (lower down) or investment-only (higher down).

Related

What are commercial Loans

Are commercial loans difficult to get?

SBA Loans Explained: What You Need to Know for Real Estate Investment Projects

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