The “Refinance Cliff” is Here: LegalMatch Advises Businesses on Survival Strategies for Maturing Commercial Loans

Connecting Property Owners With Attorneys for Loan Workouts, Subchapter V Bankruptcy, and Foreclosure Prevention Amid Rising Interest Rates

RENO, NV / ACCESS Newswire / December 5, 2025 / A financial shockwave aimed at small business owners and commercial real estate investors has officially arrived. LegalMatch.com, the nation’s leading online legal matching service, reports a surge in demand for attorneys specializing in debt restructuring and commercial real estate as billions of dollars in 5-year commercial loans taken out during the low-interest era of 2020 begin to mature.

The commercial real estate term, “Refinancing Cliff,” has risen to describe a double threat to commercial real estate owners who took out low-interest-rate loans in 2020: mortgage payments at the new, higher interest rate, combined with a lower property valuation for the commercial real estate property.

Many business owners are walking into their banks, possibly expecting a standard renewal, only to be told they need to bring six figures of cash to the closing table to cover the valuation gap. If the property’s value has dropped below the loan balance, the bank may not refinance the debt. Without legal intervention, this can lead to default and foreclosure, even for businesses that are otherwise profitable.

Defaulting on the loan is not the only option, however, and there are several legal defenses an attorney can use to protect the business and property such as:

• Commercial Loan Workouts: Knowledgeable real estate attorneys can negotiate “forbearance agreements” or “extensions” for the borrowers’ loan obligation to lenders. Lenders are often more ready to consider a workout than take back the illiquid property, but this involves a properly drafted legal proposal, not just a simple request.

• Small Business Bankruptcy: Under SBRA, Chapter 11 bankruptcy, also called “Subchapter V,” may be used by a small business to restructure debt, which may reduce or change a loan to match the value of the property, without giving control to creditors.

• Capital Stack Restructuring: Attorneys can help prepare “rescue capital” or mezzanine financing to get new investors into the transaction without violating existing loan covenants.

“This is not just a financial issue, it’s a contract issue; and the window to act is closing. The worst time to hire an attorney is after a Notice of Default has been filed. Negotiation leverage is highest before the loan maturity date passes. Business owners need to understand their rights under their original promissory notes and use the tools the legal system provides to bridge this economic gap,” says Ken LaMance, LegalMatch’s General Counsel.

Commercial property owners and small business leaders facing loan maturity issues can find specialized Real Estate and Bankruptcy attorneys today at LegalMatch.com. Users can submit their case details to the confidential platform, receive free attorney matches, and choose the desired attorney.

The platform also has an Online Law Library filled with informative articles on various legal topics, including the advantages and disadvantages of business loans. Take the steps to secure the safety of your commercial real estate today with LegalMatch.

About LegalMatch.com
LegalMatch is the nation’s oldest and largest online legal lead-generation service. Headquartered in Reno, Nevada, LegalMatch helps people find the right lawyer and helps attorneys find new clients. LegalMatch’s service is free to individuals and small businesses looking for legal help. For more information about LegalMatch, please visit our website or contact us directly.

Media Contact
Ken LaMance
press@legalmatch.com
(415) 946-0856

SOURCE: LegalMatch.com

View the original press release on ACCESS Newswire