Direct answer
How this refinance option works
A commercial cash-out refinance replaces the current loan and provides additional proceeds from eligible property equity. Gross cash-out equals the new loan minus payoff; net cash-out is lower after closing costs, escrows, reserves and any lender-required holdbacks.
Common business-purpose uses can include acquiring another investment property, funding property improvements, paying eligible business obligations or adding working capital. Lender rules determine acceptable uses.
Equity alone does not set proceeds. Lenders also test LTV, DSCR, debt yield, property condition, ownership seasoning, sponsor liquidity and the source of the current value.
A request below $1 million or $2 million can still be a meaningful commercial or investor refinance. Program minimums vary, so the file should be routed by property type and size rather than assuming every lender serves small balances.