Small Business Loans
Commercial Equity Loans & 2nd Liens
A loan secured by the equity in commercial property, recorded behind your existing mortgage.
All loan programsWhy not just refinance?
If your first mortgage has a good rate, replacing it to get cash out can cost you. Many commercial loans also carry prepayment penalties. A second lien leaves the first loan alone and adds a separate loan behind it.
Because a second lien is repaid after the first if the property is ever sold or foreclosed, it carries more risk for the lender and costs more than a first mortgage.
How the amount is figured
Lenders look at combined loan-to-value: the first mortgage plus the new loan, divided by the property’s value.
- Building value
- $2,000,000
- Current first mortgage
- $900,000
- Combined limit, if a lender allows 70%
- $1,400,000
- Possible second lien
- $500,000
Illustration only. The combined limit depends on the property, the lender, and the terms of your first mortgage.
Check the first mortgage
Some commercial first mortgages prohibit or limit additional liens on the property. We start by reading your current loan documents so there are no surprises.
What to have ready
- Current mortgage statement and loan documents
- Recent appraisal, if you have one
- Rent roll and operating statements for income property
- What the funds are for
Ranges shown are typical of the market as of 2026, not quoted terms. This page is general information, not a commitment to lend. Every loan is subject to underwriting and approval, and actual terms depend on the property, the business, and the borrower. Adelante Group is a loan broker, not a lender; loans are made by our lending partners.