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Commercial Real Estate Construction Loans
Guidance from experienced commercial construction lenders.
Build with confidence using financing designed for real-world projects.
Building or expanding a commercial property is a major investment. The right construction loan helps keep your project on track from the ground up. Commercial real estate construction loans are designed to fund new builds, major renovations, and expansions for offices, retail spaces, warehouses, and other income-producing properties. These loans provide access to funds in stages, so you only borrow what you need as construction progresses.
Instead of receiving the full loan amount upfront, funds are released through scheduled draws. This helps manage costs, reduce interest expenses, and align financing with construction timelines. Interest is typically charged only on the amount that has been disbursed, making cash flow easier to manage during the build. Once construction is complete, many loans can transition into permanent financing, reducing the need to reapply.
These loans work best when paired with a clear plan, realistic budget, and experienced professionals. Lenders review project plans, timelines, and financials to help ensure the loan structure fits the scope of the build. With the right setup, construction financing can support steady progress, minimize surprises, and help turn plans into a completed commercial space that’s ready for business.
Talk to a Commercial Loan Expert
(801) 223-7620 | [email protected]
or visit us at any UCCU branch location.
Available M–F 9 am–5:30 pm
Progress-Based Funding
Funds are released in stages to match construction milestones and control borrowing costs.
Interest-Only During Build
Pay interest only on funds used, helping preserve cash flow while construction is underway.
Flexible Project Support
Financing can adapt to new builds, expansions, and major commercial renovations.
From Planning to Completion
A successful commercial construction project starts long before the first shovel hits the ground. Construction loans are structured to support planning, building, and completion without unnecessary complexity. Early stages focus on reviewing plans, budgets, permits, and timelines to ensure the loan aligns with the full scope of the project. This upfront clarity helps reduce delays and unexpected costs later.
During construction, draw requests allow funds to be released as work is completed. Inspections help confirm progress and keep everyone aligned. This process creates accountability while giving builders and owners access to capital when it’s actually needed. Clear communication throughout the project helps keep timelines realistic and expectations clear.
Once construction wraps up, many projects move into long-term financing. This transition can simplify repayment and provide predictable monthly payments. The goal is to move from construction to occupancy with minimal disruption. When financing matches the pace of the project, business owners can stay focused on opening, leasing, or growing their operation instead of worrying about funding gaps.
Frequently Asked Questions
What types of projects qualify for commercial construction loans?
New commercial buildings, expansions, and major renovations for income-producing properties often qualify.
How are funds distributed during construction?
 Funds are released through scheduled draws based on completed work and approved inspections.
Do I pay interest on the full loan amount right away?
 No. Interest is usually charged only on the amount that has been disbursed.
What happens after construction is finished?
 Many loans convert to permanent financing, allowing repayment over a longer term.
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