Northeast Bank is a Maine-chartered bank and nontraditional lender that grants various business loans, including commercial real estate loans and Small Business Administration (SBA) loans. It has provided more than $167 million in commercial real estate loans and has a capacity exceeding $211 million. It offers bridge loans, loan-on-loan financing, SBA 7(a), SBA 504, and SBA Express Loans. Northeast Bank is best for businesses looking to refinance their existing real estate loan or acquire new property.
Northeast Bank Commercial Real Estate Loans Pros and Cons
Quicker and more streamlined borrowing process
Relatively new to commercial real estate loans
Fixed-rate interest rates
Fine print might include additional service charges
Offers in-house underwriting
Who Northeast Bank Commercial Real Estate Loan Is Best For
- Businesses looking to refinance an existing real estate loan: Northeast Bank offers refinancing of existing commercial real estate loans. This option is ideal for those looking to expand their business operations or acquire new properties.
- High-risk businesses that need faster financing: Northeast Bank caters to industries that are traditionally considered high-risk, including hotels, restaurants, and healthcare facilities. While other providers might take a long time processing loans from these industries, Northeast Bank promises quicker loan application and processing times.
Northeast Bank Commercial Real Estate Loan Costs and Terms
Commercial Real Estate Loan
Up to $10 million
Up to 90%
Annual Percentage Rate (APR) Ranges
Up to 30 years
30 to 40 days
Northeast Bank offers SBA loans up to $5 million, and United States Department of Agriculture (USDA) loans up to $10 Million. Repayment terms vary from 25 years for SBA loans and 30 years for USDA loans. It specializes in lending $500,000 to $5 million for owner-occupied commercial real estate purchases and financing for expansions or renovations.
Do You Qualify for a Northeast Bank Commercial Real Estate Loan?
Minimum Credit Score
Time in Business
At least two years
Minimum Debt Service Coverage Ratio (DSCR)
Northeast Bank promises to expedite due diligence and loan processing. Its in-house team of experts will initially look at your financial standing as a borrower. Then, it will proceed to conduct due diligence on your offered collateral. Underwriting is conducted in-house as well, which makes the whole process faster and more convenient for borrowers.
Northeast Bank Commercial Real Estate Loan Application Process
Northeast Bank offers a streamlined loan application that consists of four steps, all of which are conducted by its in-house team of experts:
- Loan request: After you submit your application, its in-house team will conduct preliminary due diligence and assess the value of the collateral you are offering.
- Term sheet: After the preliminary assessment and valuation, you will be presented with a Term Sheet, which outlines the proposed loan structure and terms.
- Underwriting: Once you accept the Term Sheet, you will need to submit due diligence materials. Its in-house team will then conduct a final underwriting, which it promises to complete in less than 15 days.
- Closing: Once the final terms are agreed, your loan will be funded within 30 days.
Loan applications are started by contacting its lending team. It can be done by calling them at 833-249-9198. You can also visit its website to schedule a meeting with its lending experts.
Northeast Bank Alternatives
Online platform that connects you with SBA 7a commercial real estate loan providers
Businesses who are up for expansion or renovation
Businesses as young as six months that need quick loan approval
Businesses in need of short-term loan to finance renovation or expansion to a new location
Up to $5 million
Up to several million dollars
$5,000 to $250,000
5% to 7%
Starting at 5%
Up to 25 years
Up to 25 years
Up to 12 months
Minimum Credit Score
620 to 650
What Business Owners Should Know About Northeast Bank Commercial Real Estate Loans
- Northeast Bank is an SBA Preferred Lender: This means that loans are processed quicker, and the application process is more streamlined compared to other lenders. It has also been approved by SBA to review, analyze, approve, and close on loans in the name of SBA.
- Its 504 unsecured loan program focuses on real estate and machinery funding: Some loans granted by Northeast Bank include job creation requirements. For example, manufacturers must create or retain one job for every $100,000 loan amount.
- It offers in-house underwriting: Since it is a bank, Northeast Bank can underwrite its own loans, which makes processing more centralized. For you, this means a smoother and faster loan application process.
Most Helpful Northeast Bank Commercial Real Estate Loans Reviews
As of the date of this writing (July 16, 2020), there are no Northeast Bank Commercial Real Estate Loans reviews available online. If you are a past or present Northeast Bank client, please leave a review to help other business owners to decide whether or not to use its services.
Northeast Bank Commercial Real Estate Loans Frequently Asked Questions (FAQs)
How can I make a payment on my loan?
Loans can be made using your checking or savings account with Northeast Bank. They can be processed through online banking or telephone banking. Payments can also be set up to occur automatically.
Does Northeast Bank offer other services aside from in-house underwriting?
Northeast Bank’s team includes experts in valuation, legal asset management, and servicing.
Which properties can be used as collateral for my loan?
Your real estate commercial loan may be secured by your business properties, including the higher-risk categories like hotels, gas stations, self-storage, owner-occupied properties, and assisted living properties.
Northeast Bank offers financing for businesses that are traditionally considered high-risk. This includes hotels, restaurants, assisted living facilities, and healthcare facilities. For businesses that fall into this category and find it difficult to source financing options, Northeast Bank offers competitive rates and loan processing times.
If you are still not sure if Northeast Bank is right for you, then this article on the top commercial real estate loan providers is a review of our top choices. In this guide, we compared the top providers according to their terms, costs, and qualifications.