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    Construction Loans — Ground-Up & Renovation Financing $500K to $50M

    Draw-basis construction financing for commercial development, renovations, and ground-up projects. 12-36 month terms with construction-to-permanent options available.

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    What Is a Commercial Construction Loan?

    A commercial construction loan funds the building or major renovation of income-producing property — office, retail, industrial, warehouse, multi-family, and mixed-use projects. Rather than releasing the full amount at closing, the lender funds on a draw basis, advancing money in stages as a third-party inspector verifies each construction milestone. That structure protects both sides and means you pay interest only on the funds drawn, not the entire loan from day one. Lenders weigh your plans and permits, project budget, equity contribution, and experience, with ground-up builds typically facing more scrutiny than renovations.

    When the project is complete, a construction-to-permanent loan can convert to a long-term mortgage in a single closing, or you can refinance separately into permanent financing. To plan your exit, compare conventional commercial loans or broader commercial real estate financing, and use bridge financing if you need a short-term takeout before stabilizing.

    $500K - $50M

    Project financing

    12-36 Months

    Construction period

    Draw Basis

    Pay as you build

    Construction Loan Process

    Our streamlined process takes you from project planning through construction completion with expert support at every stage.

    Architects reviewing construction blueprints and plans
    1

    Pre-Approval

    Get qualified and determine loan amount

    2

    Plans & Permits

    Submit construction plans and obtain permits

    3

    Loan Closing

    Final approval and fund setup

    4

    Construction Draws

    Receive funds as construction progresses

    5

    Permanent Financing

    Convert to permanent loan upon completion

    Project Types We Finance

    Office Buildings
    Retail Centers
    Industrial Facilities
    Warehouse & Distribution
    Multi-Family Housing
    Mixed-Use Developments
    Renovation Projects
    Completed modern commercial building

    From Vision to Reality

    Our construction loan experts have helped developers and business owners complete projects worth over $500 million in commercial real estate.

    Expert construction lending guidance
    Flexible draw schedules
    Competitive rates and terms
    Seamless transition to permanent financing
    Start Your Project

    Explore Related Financing Options

    Compare financing options to find the best fit for your business needs

    $500K–$25M

    Bridge Loans

    Fast short-term financing for time-sensitive acquisitions and property transitions.

    Learn more
    Up to $5.5M

    SBA 504 Loans

    Long-term, fixed-rate financing for commercial real estate and heavy equipment purchases.

    Learn more
    $500K–$50M+

    Commercial Real Estate Loans

    Financing for office buildings, retail centers, industrial properties, and mixed-use developments.

    Learn more
    $500K–$25M

    Conventional Commercial Loans

    Standard bank financing for stabilized commercial properties with proven cash flow.

    Learn more

    FAQ

    Frequently Asked Questions

    Construction loans use a draw-basis system where funds are released in stages as construction milestones are completed. A third-party inspector verifies work completion before each draw is approved. This protects both the lender and borrower by ensuring funds are used as intended.

    A construction-to-permanent (C2P) loan combines construction financing and permanent mortgage into a single loan with one closing. Once construction is complete, the loan automatically converts to a permanent mortgage, saving you from paying double closing costs.

    Commercial construction loans typically require 10-30% down payment, depending on the project type, borrower experience, and property location. Ground-up construction may require higher equity than renovation projects.

    Construction loan terms typically range from 12 to 36 months, depending on the project scope and complexity. Extensions may be available if construction timelines extend beyond the original estimate.

    Lenders weigh your construction plans and permits, project budget, borrower experience, and equity contribution, which typically runs 10-30% down. A clear scope, qualified general contractor, and a realistic completion timeline strengthen your application. Ground-up projects generally face more scrutiny than renovations because there is no existing structure to value.

    Our construction financing covers office buildings, retail centers, industrial facilities, warehouse and distribution space, multi-family housing, mixed-use developments, and renovation projects. Loan amounts run from $500K to $50M, so the program fits everything from a single-tenant build to a large ground-up commercial development.

    Construction loans range from $500K to $50M, with the amount sized to your project budget, the property's projected value, your equity, and your experience. Because funds release on a draw basis as milestones are verified, you only pay interest on the portion drawn rather than the full loan from day one.

    A standalone construction loan covers the build, then you refinance into permanent financing separately. A construction-to-permanent loan combines both into one closing and automatically converts to a mortgage when the project is complete, saving a second set of closing costs. C2P is often the simpler path if you plan to hold the property long term.

    Still have questions? Our loan experts are here to help.

    Contact UsStart Your Application

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    Halo Business Finance is a direct CRE & equipment lender providing commercial financing solutions to businesses nationwide.

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