Support for commercial real estate purchases


We’ll help put your borrower on firmer ground

Not every small business can qualify for a conventional commercial real estate loan, no matter how badly it needs it. Small business clients may lack funds for the required down payment. They may need longer terms or a lower loan-to-value ratio than you can provide. You want your small business clients to successfully manage growth, bringing more jobs and vitality to your area. But you can’t always help them on your own.
At Community Reinvestment Fund, USA (CRF), we collaborate with other lenders, including Certified Development Companies (CDCs), community banks, credit unions, Community Development Financial Institutions (CDFIs), and commercial financial advisors, to provide permanent financing solutions for “near miss” commercial real estate purchases.

We have multiple funding avenues that enable us to both originate loans and purchase existing SBA 504 first mortgage loans, depending on the circumstances. We don’t compete with your business; instead, we complement your existing loan products and customer relationships.

Why the SBA 504 First Mortgage Solution from CRF is different

As a mission driven non-profit, we work with borrowers with difficult funding scenarios; for example, a business that:

  • Requires a larger loan sum, up to $6 million
  • Lacks sufficient capital for the down payment required by a conventional loan
  • Has a project that clearly benefits the community or creates jobs
  • Needs a longer loan term to make the purchase feasible

How you benefit

  • Certified Development Companies (CDCs): CRF can help you increase your loan volume by providing the first mortgage when you’re unable to find a first mortgage lender. We deliver a referral fee for your support and help you generate needed impact in your community.
  • Banks and credit unions: Working with CRF, you can gain liquidity, earn a premium, and deepen your customer relationships by architecting a financing solution.

What we fund

Using a CRF SBA 504 First Mortgage Solution, we can originate first mortgages packaged with SBA 504 second liens for borrowers trying to:

  • Finance commercial real estate purchases between $250,000 and $6 million
  • Purchase existing buildings at least 51% occupied by their business
  • Purchase newly constructed buildings at least 60% occupied by their business
  • Refinance existing, non-SBA real estate loans

Everyone wins. Your borrowers acquire the real estate they need for stability and growth. You earn fee income, when you refer a loan for us to originate, and when we purchase an existing loan, you gain additional liquidity.

How a CRF SBA 504 First Mortgage Solution works

Businesses that may qualify for a CRF 504 First Mortgage Solution meet the following criteria:

  • Are a for-profit business
  • Have a minimum two years of operation
  • Have the ability to provide a personal loan guarantee
  • Have a positive personal and business credit history for the 24 months prior to the application
  • Have no prior bankruptcy

What we featureHow the business benefits
Loans up to $6 million Capital for hard-to-fund real estate projects that can’t always be financed by local lending sources.
Fixed-rate terms as high as 25 years Stable, manageable monthly payments to ease cash flow and drive uncertainty out of the business.
Down payments as low as 10% Lower cash outlay for businesses that need their capital to fund growth.
Loan-to-value ratios as low as 50% Lower capital investment requirement keeps cash in the business for other purposes.
Fully amortized loans No balloon payments that could derail the business down the road.

If you are a lender

Want to explore options for selling or originating an SBA 504 First Mortgage Solution through CRF? Find out how to get started as a lending referral partner.

If you are a business owner

Can a CRF SBA 504 First Mortgage Solution help you acquire the real estate you need to grow your business? Fill out a business owner financing inquiry form.

For additional information on SBA 504 loans, contact the SBA’s Small Business Development Centers or the National Association of Development Companies (NADCO).

Need to fund business equipment or other non-real estate purchases? Review the CRF SBA 7(a) Loan.