Commercial & SBA

Three different paths people lump together

Search traffic says “commercial loan” when the caller might mean (1) a 1–4 unit rental financed as a residential investment or DSCR file, (2) a true commercial property (retail, office, mixed-use, 5+ multifamily), or (3) an SBA 7(a) or 504 structure for an owner-user small business. Those are not interchangeable, they are not priced off a consumer FHA rate sheet, and they are not originated with the same disclosures.

• Residential investment (1–4 units): still a mortgage conversation, with occupancy = investment, different down-payment and reserve rules than a primary residence.
• Commercial real estate: underwriting looks at leases, DSCR on the property, entity documents, and often a business tax return — not a W-2 housing ratio alone.
• SBA: the Small Business Administration guarantees loans made by participating lenders for eligible small businesses. Real estate can be part of 7(a) or 504. SBA publishes eligibility; we do not invent it.

If the property is 1–4 units

Start with conventional investment, portfolio, or DSCR-style investor programs — not SBA. Down payment is typically higher than owner-occupied. Seller concession caps are tighter. This site’s consumer FHA/VA/USDA pages generally do not apply (FHA and VA are owner-occupy programs in ordinary use).

• Conventional (including investment overlays)
• DSCR (rental cash-flow) loans
• Tell us it is investment on the first call so we do not waste a pre-approval path built for a primary residence.

Commercial real estate

Purchase, refinance, construction, or renovation of business-purpose property is a separate credit decision. Timing, deposits, and rate structure will not match a Blend consumer application. We will ask for the offering memorandum or rent roll, entity docs, and the use of proceeds. Availability depends on the asset and the channel — we will not advertise “quick approvals” or a teaser rate.

SBA — what it is and is not

SBA 7(a) is a general small-business loan program that can include real estate. SBA 504 is built around major fixed assets, typically with a CDC and a bank. Both require an eligible small business, owner occupancy rules that SBA defines, and personal guaranties in ordinary cases. Use SBA.gov for current size standards and uses of proceeds. If Stellar is not the right originating channel for a specific SBA product, we will say so rather than take an application we cannot place.

How to start

Do not upload tax returns to this marketing site. Call the office or use the lead form with a short note on property type (for example “4-unit rental in Trenton” vs “owner-occupied warehouse”). For a consumer primary residence, use the residential program pages and the Blend application instead.