What is a small balance commercial loan?
Small balance commercial, often shortened to SBC, describes loans at the smaller end of the commercial real estate market: neighborhood retail, a corner mixed-use building, a small apartment property, a single-tenant office, a light industrial building or a local self-storage facility. There is no single industry cutoff for "small balance," but the idea is the same: properties too small or too specialized for large institutional lenders that still need real commercial underwriting.
These properties make up a large part of the commercial market, yet they are often underserved. Big lenders may not want the deal size. Banks may like the property but not the timing, the condition or the borrower's need for flexibility. A direct private lender fills that gap.
Our SBC loan size
Our core range is built for this market. Loans typically run $100,000 to $2,000,000; smaller loans, and larger loans up to $5,000,000, are considered case by case.
Why investors choose a private SBC lender
- Decisions from the lender. We lend our own funds, so the team reviewing your file makes the call.
- A property-first view. We look at the building, the leverage and the plan. There is no minimum credit score.
- Less paperwork. Documentation is limited and focused on what explains the deal.
- Practical valuation. A broker price opinion or internal valuation takes the place of a full appraisal.
- Clear structure. First lien, up to 70% LTV or LTC, 2 to 4 points, interest-only payments and flexible prepayment.
Rates are 10.99% to 12.99% (current typical range; subject to change, market conditions and underwriting). Terms are 12 months, plus one optional 6-month extension, and closings typically take about 2 weeks or less, subject to underwriting.
Property types we finance
- Multifamily (5+ units)
- Mixed-use buildings
- Retail and restaurant
- Office buildings
- Light industrial
- Self-storage
What an SBC loan can do
Borrowers use our small balance commercial loans to buy properties, including on a quick close; refinance maturing or unwanted debt; take cash out; fund rehab and value-add plans; carry a building through lease-up; and complete construction. Special situations that need a creative structure are welcome too. The common thread is a property with real value and a credible plan to repay, through a sale or a longer-term loan. Pair it with our bridge or hard money approach as the deal requires.
How small deals get a fair review
Small deals deserve the same attention as large ones. Small balance properties often have quirks: a short operating history, a single tenant, deferred maintenance, or owner-managed books that do not look like an institutional rent roll. We would rather understand those details than screen them out. Tell us what is going on with the property and we will tell you plainly whether we can help. We lend in DC, MD, VA, DE, PA, NJ and NC; see where we lend.
What we don’t lend on
- Owner-occupied homes or any property the borrower will live in
- Loans for personal, family or household purposes
- Ground-up construction or land loans
- Second liens or mezzanine financing
- DSCR or long-term rental loans (we make bridge loans only)