Conventional Term Loans for Commercial Property

Lock in long-term, fixed-rate financing for stabilized commercial real estate. Through AVANA’s credit union network, our conventional term loans provide reliable permanent debt for acquisitions, refinances, partner buyouts, and property improvements.  

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SBA 504 Loans
Built for Growth

Fixed-Rate, High LTV (Up to 90%), Long-Term CRE Loans for Owner-Occupied Properties

Backed by $5B+ in SBA lending expertise. Fast, transparent closings tailored for small businesses and brokers.

Apply For a LoanProduct Sheet

Permanent Debt for Stabilized, Income-Producing CRE

A conventional term loan is long-term financing for commercial real estate that generates consistent, documented income. Unlike bridge loans — designed for transitional assets — conventional term loans are the right structure once a property is stabilized: occupancy is up, cash flow is predictable, and you want to lock in permanent debt at a known rate.
AVANA CUSO originates and places conventional term loans through a trusted network of credit unions. That funding source matters: credit union lenders typically offer longer amortization periods (up to 30 years for multifamily, 25 years for all other types), no prepayment penalties, and competitive rates indexed to the 5-Year CMT with spreads of 2.00%–2.50%, fixed for the initial 5-year term. For 10-year term loans, the rate resets after year 5. Loan fees are 1.0%–2.0%.
Common uses of proceeds:
  • Property acquisition: purchase a stabilized, income-producing commercial property
  • Refinancing: replace maturing bridge debt or bank term loans with longer-term, lower-carry permanent financing
  • Partner buyouts: use existing equity to acquire a co-owner's interest
  • Property improvements: non-ground-up renovation, deferred maintenance, or tenant improvements
  • Bridge loan exit: refinance a stabilized asset out of short-term debt into long-term conventional financing

Certainty of execution

Clear yes or no on eligibility — fast. Soft quote within 1 business day. We don't string borrowers along with conditional maybes.

Competitive long-term rates

Rates indexed to 5-Year CMT + 2.00%–2.50%, fixed for the initial 5-year term. Resets every 5 years on 10-year loans.

No prepayment penalty

Refinance, sell, or exit at any time without a breakage cost — a material advantage over most bank term loans with step-down prepayment schedules.

Long amortization, lower monthly carry

25-year amortization for most property types; 30-year for multifamily. Lower monthly debt service improves DSCR and preserves operating cash flow.
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Diversify portfolios
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Expand lending programs beyond their communities
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Mitigate concentration risk
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Improve Loan-to-share ratio

AVANA CUSO Conventional Loan: Rates and Terms

Rates and structures vary by property type and borrower qualifications. All figures are indicative — contact us for property-specific terms.

Loan amounts

$1MM - $15MM

Available for stabilized, income-producing commercial properties

Interest rates

5-Year CMT + 2.00%–2.50%

Designed to fund mid- to large-scale commercial real estate projects

LTV

Up to 75%

Up to 75% of appraised value (up to 65% for franchised hotels and restaurants)

Loan terms

5 - 10 Years

with longer amortization periods

Download Conventional Loan Product Sheet

Wide range of asset types

AVANA's bridge loan program covers a wide range of commercial asset classes across the United States

Franchise Hotels →

Long-term debt for nationally branded hotels (Marriott, Hilton, IHG, and Hyatt) with stabilized occupancy.

Franchised Restaurants →

Permanent financing for QSR and casual dining franchisees with documented multi-unit operating history

Industrial →

Term loans for stabilized warehouse, logistics, and light industrial properties with proven tenancy and consistent NOI.

Medical Offices →

Long-term financing for stabilized medical office buildings and healthcare facilities with anchored tenancy.

Mixed-Use →

Conventional term loans for retail/multifamily mixed-use properties, evaluated on blended net operating income.

Multifamily →

Long-term debt for apartment properties with stabilized occupancy.

Retail →

Conventional term loans for well-leased centers with credit worthy anchor tenants. Grocery-anchored centers preferred.

Self-Storage →

Term financing for stabilized self-storage with occupancy above break even and documented trailing income.

Do You Qualify for a Conventional Term Loan?

AVANA CUSO's program is designed for experienced operators with stabilized properties and strong credit metrics. Here's what we look for:
  • Loan size: $1M–$15M
  • Property status: stabilized and income-producing (not transitional or in lease-up)
  • DSCR: 1.25x minimum (1.35x for retail, franchised hotels, and restaurants)
  • Debt yield: 9%–12% minimum depending on asset type
  • Leverage: up to 75% LTV (65% for franchised hotels and restaurants)
  • Guarantor FICO: 680+ minimum
  • Guarantor net worth: atleast 1.0x the loan amount
  • Guarantor liquidity: minimum 6 months of projected P&I payments
  • Operating history: 3+ years of property financial statements
  • Full-recourse personal guaranty from principals with controlling interest

A Streamlined Process

We make financing simple, transparent, and fast from application to funding

Submit Application

Submit your application with pre-qualification documents. We’ll review and issue a soft quote within 1 business day

Review

We review initial documents and confirm loan structure and key terms. If the deal meets criteria, we issue a Letter of Intent with proposed terms

Approval & Terms

We complete underwriting and order third-party reports as needed. Credit team issues final approval when complete (timing can vary)

Closing & Funding

We prepare final loan documents, open escrow, and coordinate closing. Funds are released once closing requirements are met

Explore Process
Apply For a Loan

Proven Success Stories

We’ve helped businesses across industries

Two Industrial Flex Buildings
Featured
October 24, 2024

Two Industrial Flex Buildings

Loan Purpose:

Acquisition

Asset Class:

Industrial

Loan Amount:

1,225,000

Nashville Hotel Deal
Featured
November 1, 2024

Nashville Hotel Deal

Loan Purpose:

Construction

Asset Class:

Hotel

Loan Amount:

3,021,628

Frequently asked questions

Find answers to common questions
Which businesses are a good fit for a conventional term loan?
Conventional term loans suit established commercial real estate owners and operators with stabilized, income-producing properties, a DSCR of at least 1.25x (1.35x forretail, hotels, and restaurants), documented operating history, and strong borrower financials. It's well-suited for investors who don't meet SBA owner-occupancy requirements but want long-term permanent debt. It's not the right fit for transitional assets, properties in lease-up, or ground-up construction — bridge or construction financing is more appropriate for those.
What loan amounts, LTVs, terms, and rate structures are common?
AVANA CUSO conventional loans range from $1M to $15M with max LTV of 75% for most property types (65% for franchised hotels and restaurants). Terms are 5–10years, with amortization up to 30 years for multifamily and 25 years for all other types, with monthly principal and interest payments. Rates are fixed for the initial 5-year period based on the 5-Year CMT + 2.00%–2.50%, resetting after year 5 on 10-year loans. No prepayment penalties apply. Loan fees are 1.0%–2.0%.
How does a conventional term loan compare to an SBA loan?
A conventional term loan is 100% lender-funded with no government guarantee —which means faster processing, simpler documentation, and no SBA owner-occupancy requirement. It typically requires stronger credit metrics but is the right fit for investor-owned, stabilized properties. An SBA 504 loan is partially SBA-guaranteed, enabling higher leverage (up to 90% total projectcost) and longer fixed terms, but requires owner-occupancy of 51%+ and adds SBA-specific documentation and fees. AVANA CUSO's no-prepayment-penalty structure and longer amortization are specific advantages not typically available under SBA 504.
What can conventional term loan proceeds be used for?
Proceed scan be used for property acquisition (purchasing a stabilized income-producingproperty), refinancing existing debt (replacing maturing loans with better terms or longer amortization), partner buyouts (using existing equity toacquire a co-owner's interest), or non-ground-up property improvements such as renovation, deferred maintenance, or tenant improvements. Proceeds cannot fund ground-up construction — a construction loan is the appropriate product for new builds.
How long does the process usually take?
Plan on approximately 30–45 days from a signed LOI to closing, depending on third-party diligence — primarily appraisal and Phase I environmental timing. We issue a soft quote within 1 business day of receiving pre-qualification materials, and an LOI follows within 3–5 business days for deals that fit our program. Borrowers with organized financial packages consistently close at the faster end of that range.
Learn More
What documents are typically required?
To issue an LOI, we typically request: property address and description; loan amount and use of proceeds; list of all owners with 20%+ interest and proposed guarantors; 3 years of property financial statements (P&L and balance sheet); T-12 financials dated within 90 days; current rent roll; and personal financial statements for all guarantors including a 3-year personal tax return history. For refinances, we also need current loan balance, prepayment penalty information, and cost basis. We provide a complete checklist at the time of the LOI.

Apply for a Conventional Loan Today

Submit a short pre-qualification and our team will respond within 1 business day. Provide the property type, location, approximate loan size, and use of proceeds— we'll give you a straight answer on fit and indicative terms. No commitment required.
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Our Team

About Sanat Patel

As Chief Lending Officer at AVANA Companies and Chair of the Board at AVANA Bank, Sanat Patel brings more than three decades of experience in financial services, private credit and commercial banking, with a proven track record in loan structuring, risk management, and balance sheet growth. Sanat has led strategic initiatives that connect institutional capital with entrepreneurial ambition, supporting the growth of businesses, and  owners engaged in commercial real estate across the U.S. He has built and scaled lending platforms in partnership with banks and credit unions, developing tailored financial solutions that drive job creation and foster inclusive economic development.

Sanat Patel
Chief Lending Officer

Our Team

About Christyna Lane

As a lending participation expert in Southern California, Christyna Lane manages the direct loan placements for AVANA CUSO, a Member of the AVANA Family of Companies, with lenders like credit unions, community banks and other financial institutions while establishing and maintaining relationships for the organization.  Joining the CUSO team in 2014, she works in connection with lenders nationwide to assist them in reaching their commercial lending goals and diversifying their portfolio.

Christyna Lane
Vice President Participations