What should I do if my bank won't renew my commercial loan?

Start immediately — contact a commercial mortgage broker to access non-bank lenders. Private lenders, debt funds, and CMBS programs don't have the same constraints as traditional banks and can often close within 30 days.

Why do banks decline to renew commercial loans?

Banks decline renewals due to tightened lending criteria, poor DSCR, property type concerns, regulatory changes, or portfolio concentration limits. The bank's decision rarely reflects your only option.

How quickly can I find a new commercial lender?

With a broker's help, you can receive competing term sheets within 48 hours. Closing typically takes 2–8 weeks depending on the lender type and complexity of the deal.

My Bank Won't Renew My Commercial Loan — What Do I Do?

What to Do When Your Bank Won’t Renew Your Commercial Loan

The call no property owner wants to get: your bank says they won’t be renewing your commercial mortgage when it matures. Maybe your DSCR slipped. Maybe the bank tightened its lending criteria. Maybe your property type has fallen out of favor with their portfolio team. Whatever the reason, you’re now facing a deadline — and a problem that feels bigger than it is.

Here’s the most important thing to understand right now: your bank saying no does not mean every lender says no. Commercial real estate financing is not a single-lender market. There are thousands of banks, credit unions, debt funds, insurance companies, and private lenders actively competing for exactly the kind of loan your bank just passed on.

The mistake most property owners make at this moment is panic-calling their local banks one by one. There’s a better way.

Why Banks Don’t Renew — and Why It Doesn’t Mean You’re Stuck

Free Download: Commercial Balloon Maturity Checklist

Everything you need to do in the 12–18 months before your loan matures. One page, no fluff.

Banks operate under regulatory constraints that have nothing to do with the quality of your property or your track record as a borrower. Common reasons a bank declines renewal include:

Portfolio concentration limits. If your bank has too much exposure to office or retail loans, they may be pulling back across the board — not because your deal is bad, but because of their internal risk limits.

DSCR and debt-yield changes. Many lenders tightened their underwriting standards after 2022. A loan that qualified four years ago at 1.15x DSCR may not qualify today at the same lender’s updated 1.25x minimum.

Appraisal shortfalls. If your property’s appraised value has declined (common in office markets), the loan-to-value may exceed the bank’s current limits even if your cash flow is solid.

Regulatory pressure. Banks with high concentrations of commercial real estate loans face increased scrutiny from federal regulators. Some are simply being told to reduce CRE exposure.

None of these reasons mean your deal is unfundable. They mean your current bank is not the right lender for your current situation.

Your Real Options When a Bank Won’t Renew

Option 1: Bridge Financing
A bridge loan buys you 12–24 months to stabilize your property, address any underwriting issues, and then refinance into permanent financing. Bridge lenders focus on the asset and its upside — not just today’s DSCR. This is often the fastest path forward when a bank non-renewal catches you close to maturity.

Option 2: Non-Bank Permanent Financing
Debt funds, insurance companies, and CMBS lenders operate completely outside the regulatory framework that constrains your bank. They often have more flexible underwriting, higher LTV tolerance, and more appetite for certain property types that banks are avoiding.

Option 3: SBA 504 Refinance
If your property is owner-occupied and your business qualifies, an SBA 504 refinance can offer long-term fixed rates with favorable terms — even if a conventional bank has declined.

Option 4: Competitive Bid Process
Rather than approaching lenders one at a time, running a competitive bid across multiple lenders simultaneously produces better terms and faster decisions. A brokered process puts lenders in competition with each other for your loan.

How Fast Can You Get a New Loan?

Timing matters enormously when you’re facing maturity. Here’s a realistic timeline:

Bridge loan from application to close: 3–6 weeks
Non-bank permanent financing: 45–75 days
Bank/credit union refinance: 60–90 days

If your maturity is 90 days or less away, bridge financing is almost certainly your fastest path. If you have 6+ months, you have time to run a full competitive process and find the best permanent terms.

Frequently Asked Questions

Can I get a commercial mortgage if my current bank turned me down?
Yes. Bank non-renewals are common and do not disqualify you from financing elsewhere. Non-bank lenders, debt funds, and CMBS lenders have different underwriting criteria and actively lend in situations where banks have passed.

How long does a commercial bridge loan take to close?
Most bridge loans close in 3–6 weeks from application. The speed depends on the lender, the complexity of your deal, and how quickly you can provide documentation.

What does DSCR mean and why does it matter?
DSCR stands for Debt Service Coverage Ratio — it measures whether your property’s income is sufficient to cover the loan payments. A 1.25x DSCR means your net operating income is 25% higher than your debt service. Different lenders have different minimums, which is why a property that doesn’t qualify at one lender may qualify at another.

Not sure how much you’ll owe when your loan matures? Use our free commercial balloon payment calculator to see your estimated balance due.

How RefiLoop Helps

RefiLoop works with a network of 7,000+ lenders — banks, credit unions, debt funds, bridge lenders, and insurance companies — specifically for commercial loans between $500K and $15M. When your current bank passes, we run a competitive bid process across our lender network and deliver 3–5 real offers within 48 hours.

There are no upfront fees. We’re paid at closing, which means we only make money when you close a loan that works for you.

If your bank has told you they won’t renew, the best next step is to understand what the rest of the market will offer. That conversation costs you nothing.

Related Resources

State-Specific Refinancing Guides

Refinancing requirements and lender market conditions vary by state. Browse our state-specific guides:

Complete guide: Commercial Mortgage Refinancing — The Complete Guide →

Property Types We Finance

RefiLoop sources refinance options across all major commercial property types. Find lender options specific to your asset class:

About David Greenbaum

David Greenbaum is a commercial mortgage broker and co-founder of RefiLoop. He specializes in helping commercial property owners refinance maturing loans between $200K and $15M across Texas, Florida, Georgia, North Carolina, Ohio, and other priority markets. With hands-on experience in commercial bridge loans, debt fund financing, and conventional CRE refinancing, David helps borrowers find the right capital source for their situation — not just the easiest one.

My Bank Won’t Renew My Commercial Loan — What Do I Do?