Small balance commercial financing is changing rapidly as more lenders enter the enormous market for commercial real estate loans. Typical commercial financing in the past has been very conservative but today there are programs that will allow up to 97% loan to value on commercial owner occuppied properties. In the past, many commercial lenders offered products that required reporting financials year to year, balloon repayment requirements, and a banking relationship. Todays commercial loan market now has straight amortization periods (no balloon), never requiring the borrower to "requalify" for the loan, and up to 30 year fixed rate periods.
Commercial Loans are different than residential loans. Lenders will qualify the property by looking at it's cash-flow as well as qualifying the borrower. The main thing lenders want to see is a positive cash flow after expenses an a commercial property.