How to Prepare for a Commercial Real Estate Loan

Commercial real estate financing covers a wide range of structures: SBA 7(a) and 504 for owner-occupied properties, conventional bank loans, life-company loans for stabilized assets, bridge loans for value-add projects, and CMBS for larger transactions. Each lender wants the same core information, and a clean package speeds the process meaningfully.

At a minimum, lenders will request the last three years of business tax returns, year-to-date interim financials, a current debt schedule, three years of personal tax returns and a personal financial statement for each guarantor, and the property's rent roll, T-12, and any leases.

Build a sources-and-uses statement on day one. The lender wants to see the full capital stack: senior debt, mezzanine or seller financing if any, and the borrower's cash equity. For owner-occupied SBA transactions, plan for at least 10% borrower equity; for conventional CRE, expect 25–35% equity depending on asset class.

Order an appraisal and Phase I environmental report only after the lender has issued a term sheet — these are non-refundable third-party costs and lenders often have an approved-vendor list.

Tesni works with banks, credit unions, CDCs, and private lenders nationwide. We help owners select the right structure for the project and submit a single underwriter-ready file. We are a marketplace and do not guarantee any specific terms.