Commercial & SBA Loan
Commercial SBA 7(a) and 504
For business owners who want to own the building they work in. SBA 7(a) and 504 loans are made by SBA lenders and partly guaranteed by the U.S. Small Business Administration, with long terms for owner-occupied commercial property.
- Guaranteed byThe SBA, in part
- Made bySBA lenders
- PropertyOwner-occupied commercial property
- ProgramsSBA 7(a) and SBA 504
How It Works
Two SBA programs, one goal.
The SBA does not lend the money. With 7(a), it guarantees part of a loan made by an SBA lender. With 504, it backs the Certified Development Company's share, which lets lenders offer longer terms. SBA 7(a) is the flexible program, used for property, equipment, working capital or buying a business. SBA 504 is built for owner-occupied real estate and equipment, and pairs a bank loan with a loan from a Certified Development Company.
- 01
We confirm the SBA fits
Your business must be an eligible for-profit small business under SBA size standards, and generally must occupy most of the property.
- 02
We prepare your file
SBA loans need business and personal financials, tax returns, a business plan or projections and details on the property. We help you assemble the package.
- 03
We match you with SBA lenders
SBA lenders differ in the deals they prefer and how they structure them. We compare 7(a) and 504 options and help you choose.
Program Highlights
Why business owners choose SBA.
- SBA 7(a): versatile financing for business or property acquisition
- SBA 504: long-term financing for owner-occupied real estate and equipment
- Partly guaranteed by the SBA, made through SBA lenders
- Long repayment terms for commercial real estate
- Your business generally must occupy most of the property
- Business purpose only, not a home you live in
Common Questions
What business owners ask about SBA loans.
An SBA loan is a business loan made by a private lender and partly guaranteed by the U.S. Small Business Administration. The guarantee reduces the lender's risk, which lets it offer longer terms than many conventional business loans. The SBA sets the program rules, but does not lend the money for 7(a) and 504 loans.
SBA 7(a) is the most flexible program and can fund real estate, equipment, working capital or the purchase of a business. SBA 504 is focused on owner-occupied real estate and long-life equipment, and splits the financing between a lender and a Certified Development Company, which can offer long-term fixed-rate financing on its portion.
Under current SBA rules, a 504 loan for owner-occupied property commonly starts at 10% down, with more for new businesses or special-purpose properties. 7(a) down payments are set by the lender within SBA rules. We confirm the requirement for your deal.
Start with your business financials, tax returns and details on the property or purpose. We help you prepare the package, match you with SBA lenders that fit your deal and compare 7(a) and 504 options before you apply.
Yes. SBA 7(a) loans are commonly used to buy an existing business, including the real estate when it is part of the purchase. SBA 504 is used for real estate and equipment, not business acquisitions on their own.
Sometimes. Startups and newer businesses can qualify, usually with a larger down payment, strong projections and relevant management experience. Lenders and SBA rules both apply, so we review your situation first.
General information only, not a commitment to lend. Loan programs, guidelines, interest rates and terms are subject to change without advance notice.
Related Programs
Compare SBA lenders across our lender network.
Tell us about your business and the property. We will help you see whether 7(a) or 504 fits and which SBA lenders to approach.