Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Agency Loan Program
Freddie Mac SBL Multifamily Loans
Freddie Mac’s small balance program, known as SBL and officially renamed Conventional Small in April 2026, provides competitive financing for multifamily and apartment properties from $2 million to $10 million. It is integrated into Freddie Mac’s core Conventional platform and offers non-recourse loans, up to 80% LTV, fixed terms of 5 to 15 years, and streamlined two-report underwriting. Compare today’s commercial mortgage rates.
Get a Free QuoteFreddie Mac SBL Rates & Terms
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.18% | 80% |
| 7 Year Fixed | 6.14% | 80% |
| 10 Year Fixed | 6.28% | 75% |
- Loan amounts from $2,000,000 to $10,000,000
- Fixed 5, 7, 10, 12 or 15 year terms
- Up to 80% LTV, minimum 1.25x DSCR
- Amortization up to 30 years
- Non-recourse with standard carve-outs
- No upfront application or processing fees, Index Lock available
Rates are indicative and priced as US Treasury plus spread. Your rate, LTV and amortization are set by underwriting.
Freddie Mac SBL at a Glance
| Feature | Detail |
|---|---|
| Loan size | $2,000,000 to $10,000,000 |
| Fixed-rate terms | 5, 7, 10, 12 or 15 years |
| Maximum LTV | Up to 80% |
| Minimum DSCR | 1.25x |
| Amortization | Up to 30 years |
| Recourse | Non-recourse with standard carve-outs |
| Units | 5 to 50 units, Low Income (LI) prioritized |
How the SBL (Conventional Small) Program Works
The Freddie Mac SBL program was renamed Conventional Small in April 2026 and integrated into Freddie Mac’s core Conventional lending platform. The rename brought a higher maximum loan size of $10 million, expanded fixed-rate terms (adding 12 and 15 years to the prior 5, 7 and 10 year options), and access to Freddie Mac’s Index Lock feature. Most lenders, brokers and borrowers still refer to it as SBL.
- Loans from $2,000,000 to $10,000,000 nationwide, with prioritization for Low Income (LI) properties of 5 to 50 units
- Fixed-rate terms of 5, 7, 10, 12 or 15 years, priced as US Treasury plus a spread
- A 60-day spread lock is available after application, and Index Lock may be available for qualifying sponsors and properties
- Streamlined two-report underwriting integrated with the Conventional platform
- Amortization up to 30 years
- Non-recourse with standard bad-boy carve-outs, so no personal guarantee of payment is required
Interest-Only, DSCR & Prepayment
- Debt-service coverage: a minimum 1.25x DSCR, quoted deal by deal. Full-term interest-only requires a minimum 1.25x DSCR and a maximum 65% to 70% LTV depending on term; partial-term interest-only is available for loans below 70% LTV.
- Guarantor requirements: a guarantor is required, with a minimum net worth and minimum liquidity equal to the greater of 100% of annual debt service or 10% of the total loan amount.
- Prepayment: standard provision is yield maintenance until the loan is securitized, then a 2-year lock-out followed by defeasance, with no prepayment premium during the final 90 days. Step-down and yield maintenance without defeasance are available at additional cost.
Why SBL Remains a Leading Small-Balance Option
Since launching its small loan program in 2015, Freddie Mac has financed more than $47 billion across over 17,000 loans, making it one of the largest sources of small balance multifamily financing in the country. The April 2026 Conventional Small rename continues Freddie Mac’s longstanding mission of providing liquidity and affordability to the smaller end of the multifamily market, including workforce housing, and the higher $10 million ceiling and added 12 and 15 year terms give borrowers more flexibility and rate certainty than ever.
Get Expert Guidance on Your SBL Loan
With more than 30 years of experience and no upfront application or processing fees, we help borrowers access the Freddie Mac SBL / Conventional Small platform, including the Index Lock advantage for eligible borrowers, and we compare it against every other program. We issue written pre-approvals within 48 hours at no cost or obligation.
What Our Clients Say
“I spoke to several commercial lenders before finding Select Commercial. They got me a lower rate and their service was exceptional. If you need a multifamily loan, you need to talk to Stephen.”
Nathan B. · Philadelphia, PA“I found selectcommercial.com and saw they specialized in apartment building loans. In the end, they were by far the best company I have used. Next time I know who to call first.”
Jerry T. · Long Island, NY“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, OR“As a real estate attorney, I trust that Select Commercial will deliver apartment building loans and commercial mortgages in a timely manner. The rates and terms offered are excellent. I heartily recommend them.”
David S. · New York CityGet Your Freddie Mac SBL Quote
No cost, no obligation. Written answers within 48 hours on SBL loans from $2,000,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up