Financing Programs›SBA 7(a) & 504 Loans & Rates

Financing Program

SBA 7(a) & 504 Loans & Rates

SBA 7(a) and 504 loans offer long repayment terms and lower down payments for qualified owner-operated businesses. We prepare your file the way lenders and the SBA review it, so underwriting questions are answered before submission.

Loan Range

$50,000 – $5,500,000

Term Range

10 – 25 years

Structure

Government-backed financing for owner-operated businesses

What It's Used For

Common Use Cases

✓

Purchase or expand an owner-operated business

✓

Acquire commercial real estate with owner-occupancy

✓

Refinance high-cost existing business debt

✓

Finance a business acquisition or partner buyout

✓

Fund franchise startup or multi-unit expansion

Program Details

Key Features

◆

SBA 7(a) loans up to $5 million

◆

SBA 504 for real estate and heavy equipment, up to $5M in SBA debenture ($5.5M for manufacturing and energy projects)

◆

Terms up to 25 years for real estate, 10 years for working capital

◆

7(a) loans can carry fixed or variable rates (variable rates are based on WSJ Prime); the 504 CDC portion is fixed

◆

Lower down payment requirements than conventional loans

◆

Eligible for acquisition, expansion, and refinance

How It Works

How This Financing Is Structured

SBA loans are partially guaranteed by the federal government. Financing ranges from $50,000 to $5,500,000 depending on program, and lender minimums vary. All direct and indirect owners must be U.S. citizens or U.S. nationals under the current SBA ownership rule. Apply for an SBA loan online and we'll match you to the right program.

SBA Programs

SBA Loan Programs at a Glance

SBA 7(a)

The general-purpose SBA loan, used for working capital, equipment, business acquisitions, real estate, and refinancing. Loans go up to $5 million, and lender minimums vary.

SBA 504

Built for fixed assets such as owner-occupied real estate and long-life equipment. A bank and a Certified Development Company share the financing, and the borrower contribution starts at 10%.

SBA Express

Part of the 7(a) program for loans of $500,000 or less. The lender makes the credit decision without prior SBA review, and SBA guarantees up to 50%. Some lenders limit their SBA Express programs to smaller amounts, such as $150,000.

Read the SBA Express guide →

Fit Assessment

Is This the Right Program?

✓ This program IS a good fit when:

  • →Businesses that can't qualify for conventional financing
  • →Acquisitions requiring longer amortization periods
  • →Startups with strong projections but limited history
  • →Owner-occupied real estate purchases

✗ This program is NOT the right fit when:

  • ✗Businesses in ineligible SBA industries
  • ✗Borrowers who need funding by a fixed, near-term deadline
  • ✗Companies with unresolved federal tax debt
  • ✗Real estate investors buying non-owner-occupied property

Common Questions

Frequently Asked Questions

How long does an SBA loan take to close?+

SBA 7(a) loans commonly run 30 to 90 days to close, but timelines vary by lender and file. SBA Express loans can close faster but have lower guarantee percentages.

What credit score do I need for an SBA loan?+

SBA does not set a single minimum credit score. Lenders apply their own credit policies, and many set a minimum score of their own. Business credit history and overall financial profile matter as well.

Can I use an SBA loan to buy a business?+

Yes. SBA 7(a) loans are commonly used for business acquisitions and include goodwill in the financing, which conventional lenders typically won't fund.

Keep Exploring

Related Programs

From the Insights Library

Related Reading

Ready to Move Forward

Check SBA Eligibility

No cost. No obligation. A direct conversation about whether this program fits your deal.