A commercial and industrial loan (C&I loan) is a loan to a business rather than a loan to an individual consumer. These short-term loans may have an interest rate based on the SOFR rate or

prime rate A prime rate or prime lending rate is an interest rate used by banks, usually the interest rate at which banks lend to customers with good credit. Some variable interest rates may be expressed as a percentage above or below prime rate. Use in dif ...

and are secured by

collateral Collateral may refer to: Business and finance * Collateral (finance), a borrower's pledge of specific property to a lender, to secure repayment of a loan * Marketing collateral, in marketing and sales Arts, entertainment, and media * ''Collate ...

owned by the business requesting the loan. C&I loans consist of revolving lines of credit, term loans, and owner-occupied real estate. C&I loans do not consist of investment real estate loans, which are typically handled by a different lending group at a bank. According to SMB Adviser, the main purpose of a C&I loan is to finance capital expenditures or provide working capital to the borrower. A C&I loan is generally a short-term (1-2 year) line of credit or term loan, secured by collateral and cash flow owned by the business requesting the loan.

Availability

Debt service coverage requirements for a term or amortizing loan is generally 1.1:1, and is defined as principal payments, plus interest expense, throughout one fiscal year analyzed on a 12-month trailing basis.SMB Adviser Lending Rates
/ref> Commercial loans are available in 48 states. They are: # Multi-Family Commercial Loan Programs # Mixed-Use Commercial Loan Programs # Office Commercial Loans. # Retail Spaces and Strip Shopping Malls # Industrial Commercial Building # NON-QM Loans Types Of NON-QM Loans
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References

Loans Banking terms {{US-bank-stub