--- title: Commercial Loans and Fun Blog | cap description: cap | George Blackburne, owner, offers insight into the commercial loans and mortgage industry in this Commercial Real Estate Loan Tips blog. --- [![c-loans-logo-2025](https://info.c-loans.com/hs-fs/hubfs/images/c-loans-logo-2025.png?width=183&height=86&name=c-loans-logo-2025.png)](https://c-loans.com) [Terms of Use](https://www.c-loans.com/terms-of-use) | [Disclaimer](https://www.c-loans.com/disclaimer) | [Blog](https://info.c-loans.com/) # Commercial Loans and Fun Blog ## [Commercial Financing for Large Projects](https://info.c-loans.com/bid/53454/Commercial-Financing-for-Large-Projects) Posted by [George Blackburne](https://info.c-loans.com/author/george-blackburne) on Wed, Nov 4, 2009 - [Tweet](https://twitter.com/share) *Large Commercial Loans Today Are Being Written as Floaters with Collars* The days of long-term, fixed rate commercial loans are gone for awhile. Sure, a few life companies will still make commercial real estate loans between $5 million to $25 million at a long term, fixed rate; but commercial loans from life insurance companies seldom exceed 55% LTV today. Most large, commercial loans getting funded these days are floaters - adjustable rate mortgage loans - on standing properties. Very few large commercial construction loans are getting funded these days, unless the loan is an apartment construction loan from the FHA. Large land loans (over $2 million) are essentially impossible today too. No one is making them. In the years leading up to The Great Recession, large land loans were usually made by hard money lenders with large commercial mortgage pools. Unfortunately, almost every large commercial mortgage pool in the country is now either in bankruptcy or winding down. **The only large commercial loans being made today are loans on standing and almost fully-leased commercial properties.** When these loans are made, they are using being made by the money center banks as floaters. ***Floaters*** are adjustable mortgage loans with a term of usually only five years. They are usually readjusted monthly according to changes in one-month LIBOR. A typical margin is 300 to 400 basis points. The borrower will usually want some sort of interest rate ceiling or ***cap***. The lender will usually want some of floor on the loan. These interest rate caps cost money - usually an extra point or two. Sometimes a borrower can "pay" for his cap by agreeing to a floor. For example, a borrower can pay two extra points for a 4% ceiling; but if he agrees to a floor equal to the start rate, the lender might waive the two-point cap fee. A loan with both a cap and a floor is said to have a ***collar***. If you need a large commercial loan today on a standing property, please write to me, George Blackburne, at [george@blackburne.com](mailto:george@blackburne.com) or call me at 574-360-2486. 1 Comment [Click here to read/write comments](https://info.c-loans.com/bid/53454/Commercial-Financing-for-Large-Projects#comments-listing) Topics: [commercial real estate loan](https://info.c-loans.com/topic/commercial-real-estate-loan), [commercial loan](https://info.c-loans.com/topic/commercial-loan), [commercial mortgage rates](https://info.c-loans.com/topic/commercial-mortgage-rates), [cap](https://info.c-loans.com/topic/cap), [collar](https://info.c-loans.com/topic/collar), [floater](https://info.c-loans.com/topic/floater), [commercial financing](https://info.c-loans.com/topic/commercial-financing), [commercial mortgage](https://info.c-loans.com/topic/commercial-mortgage) [All posts](https://info.c-loans.com/all) ### George Blackburne III Owner of C-Loans, Inc. ![George Blackburne III C-Loans Owner](https://info.c-loans.com/hs-fs/hubfs/George%20Head%20Shot%20Small%205%20by%207%20copy.jpg?width=158&name=George%20Head%20Shot%20Small%205%20by%207%20copy.jpg) ### Subscribe via E-mail ### Connect with C-Loans ## [![Get the Latest Scoop on C-Loans Inc.](https://no-cache.hubspot.com/cta/default/37671/bacfb58b-143e-40d7-b126-33c182b5b90b.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/bacfb58b-143e-40d7-b126-33c182b5b90b) C-Loans.com® is sponsored by  C-Loans, Inc. — For more information, contact Tom Blackburne 555 University Ave., Suite 150, Sacramento, CA 95825 Telephone: (916) 338-3232 x 317 * Tom Blackburne in Indiana: (574) 210-6686 * Fax: (916) 338-2328 Real Estate Broker -- California Department of Real Estate -- License Number 01330173 Arizona Dept. of Financial Institutions – License Number 0909472 The Florida Mortgage Brokers License Number: 0708758 [Read our many client Success Stories](https://c-loans.com/mortgage-brokers-overview/success-stories/) » © 2025 C-Loans, Inc. All rights reserved.