Let’s be honest—renovating a commercial space can be exciting, but also stressful and expensive. Maybe you’re redoing an old storefront to bring it into this decade, or finally expanding your office to give your team some breathing room. Either way, the big question is the same: how do you pay for it without draining your cash or stalling growth?
Luckily, there are plenty of ways that you can get the financial help you need for your business, regardless of the situation you’re in or the size of your organization.
To show you just how this can be done, here are four ways you can finance a commercial renovation for a small business.
A Loan Meant For Big Improvements
If you’ve got your eye on major upgrades—think new HVAC systems, energy-efficient windows, or structural work—the SBA 504 loan could be the option that will work best for your company. It’s geared toward business owners who want to invest in long-term assets like real estate or heavy-duty renovations.
Here’s how it works: You put in 10%, a bank covers 50%, and a local development agency picks up the rest. The rates are usually fixed and lower than what you’d find elsewhere. This is beneficial to you because it can help to keep monthly payments manageable. And if you’re adding eco-friendly upgrades? You might qualify for even more support.
A Loan Meant For Energy Upgrades
If your renovation plan includes energy efficiency—like solar panels, better insulation, or LED lighting—PACE financing might be a game-changer. Instead of paying out of pocket, the cost is added to your property taxes and paid back over time, usually 10 to 30 years.
This can work great for companies that want to make these changes now but can’t afford a huge upfront cost. No huge down payment. No new loan to manage. Just a long-term repayment plan baked into your tax bill. Not every city offers PACE, but if yours does, it’s definitely worth looking into.
Bonus: If you lease your building, there’s a good chance you can pass the tax cost to tenants (as long as your lease says it’s okay), which keeps your monthly numbers in check.
A Loan Meant For Traditional Businesses
Bank loans are still alive and well. Especially if you’ve been in business a while and have a good relationship with your bank, these loans can be a solid option. Traditional bank loans usually offer decent rates and flexibility, but they take time, and the paperwork can be a lot to get together.
Your best shot? Show up with clean financials, a clear renovation plan, and realistic projections of how it’ll help your business grow. Some banks even offer lines of credit or readvanceable mortgages, which give you access to more cash as you pay the loan down.
Financing a commercial renovation doesn’t have to be a financial maze. Whether you lean into government-backed loans, energy-focused programs, or traditional bank routes, the goal is the same: get the funding you need, without boxing yourself in for years.
