Commercial Construction Loans
What is a Commercial Construction Loan?
A commercial construction loan is a short-term loan (typically two years or less) used to provide funding to complete major building projects including new construction as well as renovations or additions. Construction loans can be used for a variety of commercial properties, including office buildings, medical facilities, retail centers, or industrial sites.
Construction loans are not permanent financing, and your business isn’t expected to pay off the loan balance during its short term. Instead, construction loans are designed to provide funding during the building process, and once the work is complete, the loan is refinanced with a commercial real estate loan.
How do Commercial Construction Loans at Neighbors Work?
With a commercial construction loan from Neighbors, we’ll disburse your funds in stages, known as “draws,” as construction meets scheduled milestones. Your business is charged interest on the current balance (amount used to date), and your business makes payments to cover the interest charges while construction is completed.
Once the construction project is complete, you can work with the Neighbors Commercial Lending Team to convert the loan into a permanent commercial real estate loan (construction-to-permanent) or apply for permanent financing to repay the construction loan.
Why choose Neighbors for your Commercial Construction Loan?
- Flexible draw schedules to match project milestones
- Competitive rates
- Expert guidance through the construction process and draw schedule
- Seamless transition to permanent financing options
I'm Ready to Apply! Where Do I Start?
- Your commercial incorporation documents.
- Financial documents including tax returns, financial information (accounts and other debts), and cash flow records and projections.
- Property plans and budget, including location, zoning/permit information, and blueprints
- Your plan for the use of the property.
Once you’re ready to apply, we’ll work with you to gather the appropriate documents and information needed to underwrite your loan. These may include:
Get Started with Neighbors Today
Building construction, renovations, and/or additions are big projects … and your Neighbors are up for the task to help your business achieve its goals. You can count on Neighbors for all your commercial lending needs. When you’re ready to submit your application, simply give us a call at 314-892-5400 or complete the application and email it to: [email protected].
After your application is submitted, our commercial lending team will review it and then reach out to discuss terms and conditions with you. Serving our local business neighbors with timely credit decisions, great rates, expert advice, and personalized, friendly service throughout the entire loan process and beyond … it’s what we’ve been doing throughout the St. Louis metro area since 1928!