Business funding to buy commercial real estate usually comes down to matching a large, long-term purchase to a patient product: an SBA loan for owner-occupied property at the lowest long-term cost, or a conventional commercial mortgage when you want to move faster. The Broker Shop is a funding broker, not a lender - one 2-minute application gets you matched to the lenders whose guidelines you meet so you can compare the strongest offers for your purchase.
What kind of funding do you need to buy commercial real estate?
Buying commercial property is one of the largest, longest-payback moves a business makes, so it calls for financing built for scale and patience rather than quick cash. For property your business will occupy, an SBA loan is often the standout: SBA programs are government-backed, tend to carry longer repayment terms, and are designed for major assets like real estate, which usually means the lowest long-term cost and a smaller down payment than conventional options.
A conventional commercial mortgage is the alternative when you want to close faster or the deal does not fit SBA rules. It typically asks for a larger down payment and shorter terms but moves more quickly with less documentation. The right choice depends on your timeline, your down payment, and how long you plan to hold the property.
SBA 504 vs 7(a) vs conventional: which fits?
For owner-occupied real estate, two SBA programs come up most. The SBA 504 is purpose-built for real estate and major fixed assets, pairing a lender loan with a long-term, fixed-rate portion through a nonprofit partner - a strong fit for buying or building a facility you will occupy. The SBA 7(a) is more flexible and can fold real estate together with other needs like working capital or equipment into one loan.
A conventional commercial mortgage sits outside the SBA and suits borrowers who want speed, have a larger down payment ready, or are buying property that does not meet SBA owner-occupancy requirements. One key rule to know: SBA real-estate loans are for owner-occupied property, where your business uses most of the building - they are not designed for pure investment or rental real estate. Learn more in our SBA 504 loan guide.
How do you plan the down payment and match the move?
Real estate purchases require a down payment, and planning for it is part of the funding. Use this quick match:
- Owner-occupied building, lowest long-term cost: an SBA 504 or 7(a) loan, often with a smaller down payment.
- Faster close, larger down payment available: a conventional commercial mortgage.
- Property plus working capital or equipment in one deal: an SBA 7(a) loan.
- Covering the down payment or closing costs: plan this separately so it does not drain operating cash.
How does The Broker Shop match you to real estate funding?
The Broker Shop is a business funding broker, not a lender, so it does not lend its own money - it matches you to the lenders whose guidelines you meet. You submit one application describing your business and the property, and instead of shopping banks one at a time, you get matched across a network and compare the strongest offers side by side.
Checking your options won't affect your credit score, the service is free to the applicant, and advertised funding runs from $5,000 to $2 million. If you want to understand the model first, see how a business loan broker works, then start your application when you are ready to compare offers.
See what you qualify for
One 2-minute application is matched to the lenders whose guidelines you meet. It's free, and checking your options won't affect your credit score.
See What I Qualify For →The bottom line: Buying your building is a patient, long-term move - an SBA 504 or 7(a) loan usually gives the lowest long-term cost on owner-occupied property, and one application gets you compared across the lenders whose guidelines you meet.