Because Enterprise Bank is one of the few financial institutions that caters exclusively to small businesses, we understand their special financial needs. Those needs are as individualized and unique as each business and each entrepreneur. That’s why Enterprise Bank offers a variety of commercial loans and, unlike many other financial institutions, will create a custom loan package that will help you reach your financial goals.
To find out more about how Enterprise Bank can create a loan package specific to your business and its needs, call the bank primary telephone number at (412) 487-6048. A Client Service Representative will help direct you to the Bank Relationship Manager that will best fit your business’ industry, stage of business, needs and personality.
Commercial Mortgage Loans
Enterprise Bank makes many types of business loans available to its clients. One of these is the commercial mortgage term loan which can be used to acquire, construct, renovate or refinance commercial and investment real estate. Within the genre of commercial mortgage loans, the Bank also provides specialized financing options for non-owner occupied (i.e. investment) real estate loans versus owner occupied commercial real estate projects. Each of these types of commercial mortgage term loans have different structures and requirements.
With regards to investment real estate loans, the Bank can provide a maximum advance ratio or loan to value of 75% to 80% of the appraised value or cost, whichever is less. The actual loan to value percentage is determined based on the strength of the project and the quality of the commercial real estate being offered as collateral. In many cases, the borrower's cash downpayment/equity contribution to the project of 20% to 25% can be reduced or eliminated if the Bank takes a security interest in additional real estate or liquid collateral of the borrower or guarantors, provided the project still cash flows adequately.
For owner occupied commercial real estate projects, which are normally defined as projects wherein the commercial real estate is occupied 51% or more by a business or businesses owned by the same or similar ownership to that of the real estate itself, multiple financing options are available. In addition to conventional commercial mortgage financing under the parameters described above, the Bank can, in many cases, also provide financing for up to 90% of the appraised value or cost, whichever is less. This higher loan to value oriented financing is facilitated in many cases thru the Bank partnering with economic development financing entities and programs including the SBA 504 program, SBA 7(a) Loan Guaranty Program, US Department of Agriculture Business & Industry Loan Guaranty Program, PA Department of Community & Economic Development financing programs, Federal Home Loan Bank Banking on Business Program and many others. In addition to allowing business owners to retain cash for their business’s operational and working capital needs by reducing the level of down payment required when using these programs, many of these economic development finance programs the Bank partners with also provide below market fixed rate long term financing structures which reduce the business’s overall cost of borrowing and improve cash flow.
There is significant experience and expertise in commercial real estate among our board members, loan committee members, and Relationship Managers. We also have flexibility in financing commercial real estate projects that many of our peers do not.
To find out more about commercial mortgage financing options with Enterprise Bank, call (412) 487-6048. We will match you up with one of our experienced Relationship Managers, who will work with you closely on the financing options and programs that will best fit you and your business.