What is the difference between SBA 7(a) and SBA 504?

The 7(a) allows as little as 10% down, runs between $350,000 and $5.5 Million, reaches 25 years on commercial real estate and permits cash out for working capital. The 504 has more rigid use standards, allows no cash out, must fund real estate or equipment, and serves projects as large as $10 Million and above in a 50 / 40 / 10 structure.

How much of the building must my business occupy?

At least 51%. Owner occupancy 51% minimum is published on the card, and the 7(a) key insights repeat it as an eligibility minimum. Investment commercial property is financed on the retail, office and industrial card instead.

How much do I need to put down?

10 to 15% on the published card, and the 7(a) insights state that real estate can be purchased with as little as 10% down. On the 504 the borrower provides 10% within the three-part structure.

Do I have to sign a personal guarantee?

On the 504 the card states that no additional collateral is required, but owners with shares of more than 20% must sign personal guarantees. Personal guarantees for 20%+ owners is also listed as a published benefit of that program.

What rate do SBA loans carry?

No rate is published on this card, so none is printed here. The published terms are up to 90% LTV and terms up to 25 years, with loan amounts as listed on the program insights. Pricing is quoted on the Letter of Intent.

SBA 7(a) & 504 Loans: 90% LTV, 25 Years

SBA 7(A) & 504 LOANS

Two Small Business Administration programs under one roof. SBA 7(a) and SBA 504 for commercial real estate and business expansion, at up to 90% LTV, terms to 25 years and 10 to 15% down, with a 51% owner occupancy minimum.

5 to 30 years TERMS

SBA 7(A) & 504 LOANS

Terms

5 to 30 years

REQUIREMENTS

Down Payment:: 10-15%
Business Plan:: Required
Owner Occupancy:: 51% minimum

BENEFITS

Quick turnaround and closing times
Cash out for working capital available (7a)
No additional collateral required (504)
Personal guarantees for 20%+ owners (504)

SBA 7(a) / Key Insights

Purchase real estate with as little as 10% down
Access to loan amounts varied between $350,000 and $5.5 Million
Quick turnaround and closing times
Up to 25-year loan term on commercial real estate
Cash out for working capital IS eligible
Eligibility Minimum: 51% of space should be owner-occupied commercial real estate

SBA 504

More rigid use standards: Projects must create a set number of jobs or contribute to community development
No Cash Out
Must be used for real estate or equipment purchases only
The loan is structured in three parts: 50% from a traditional lender
40% from the SBA/CDC
10% provided by borrower
Serves projects as large as $10 Million and above
Loan terms are up to 25 years from the SBA and 30 years from Private Business Capital
Does not require additional collateral, but owners with shares of more than 20% must sign personal guarantees

SBA financing is not one product, and choosing the wrong half costs a business months. The 7(a) is the flexible one: real estate can be purchased with as little as 10% down, loan amounts run between $350,000 and $5.5 Million, terms reach 25 years on commercial real estate, and cash out for working capital is eligible. If a business needs the building and some breathing room, that is the 7(a).

The 504 is the structured one. Use standards are more rigid, with projects required to create a set number of jobs or contribute to community development, there is no cash out, and the money must be used for real estate or equipment purchases only. In exchange it reaches further, serving projects as large as $10 Million and above, and it is built in three parts: 50% from a traditional lender, 40% from the SBA or CDC and 10% from the borrower.

The published card terms are up to 90% LTV, terms up to 25 years and loans up to $5.5 million, with a credit score of 680 or better, 10 to 15% down and a required business plan. Owner occupancy is the gate on both halves: at least 51% of the space must be occupied by the business. The 504 requires no additional collateral, but owners holding more than 20% must sign personal guarantees.

Terms, requirements and benefits on this page are printed exactly as Loan Goat publishes them.

Published terms per product in this program
Product	LTV Up To	Terms	Loan Amounts
BANK STATEMENT MORTGAGE LOANS		5 to 30 years	$200,000 to $10,000,000 Non-QM
P&L-ONLY BUSINESS MORTGAGE LOANS		5 to 30 years	$200,000 to $10,000,000 Non-QM
SBA 7(A) & 504 LOANS		5 to 30 years	Sized to the property
VA 3/1 & 5/1 ARM LOANS	100%	3/1 & 5/1 ARM	$4,000,000

Product

LTV Up To

Terms

Loan Amounts

BANK STATEMENT MORTGAGE LOANS

5 to 30 years

$200,000 to $10,000,000 Non-QM

P&L-ONLY BUSINESS MORTGAGE LOANS

5 to 30 years

$200,000 to $10,000,000 Non-QM

SBA 7(A) & 504 LOANS

5 to 30 years

Sized to the property

VA 3/1 & 5/1 ARM LOANS

100%

3/1 & 5/1 ARM

$4,000,000

WHO SBA FINANCING IS FOR

Operating businesses buying the premises they work from, or expanding, where at least 51% of the space is owner occupied and the business can carry a documented plan through an SBA process.

Credit score 680+

Down payment 10-15%

Business plan required

Owner occupancy 51% minimum

Terms up to 25 years, up to 90% LTV

HOW AN SBA LOAN CLOSES

The four Loan Goat steps sit inside the SBA process, which adds the business plan and the program requirements. Quick turnaround and closing times is the published benefit, and the structure is fixed before the file moves.

Complete your application

Submit required documentation

Sign your Letter of Intent

We process and close your loan in 5-7 days

BORROWERS, IN THEIR WORDS

I had an excellent experience with Loan Goat during our real estate deal, working as the buyers agent throughout the deal. Their team was professional, responsive, and guided me through every step of the process. Clear communication and...

RAPHAEL ROUFAIL II
As a business owner traditional lending doesn't fit my finances, which is why Loan Goat is a godsend. They are able to work with you, understand what you're trying to do and get it done.

NEVENKA MOROZIN
Milad is the best in the game! My deal would not have happened without him. He performed at a 10 and was more hands on than I could ever ask for. Definitely recommend!

ASHLEY ANDREOTTI
I had an excellent experience with Loan Goat during our real estate deal, working as the buyers agent throughout the deal. Their team was professional, responsive, and guided me through every step of the process. Clear communication and...

RAPHAEL ROUFAIL II
As a business owner traditional lending doesn't fit my finances, which is why Loan Goat is a godsend. They are able to work with you, understand what you're trying to do and get it done.

NEVENKA MOROZIN
Milad is the best in the game! My deal would not have happened without him. He performed at a 10 and was more hands on than I could ever ask for. Definitely recommend!

ASHLEY ANDREOTTI

SBA 7(A) & 504 LOANS

SBA 7(A) & 504 LOANS

TWO PROGRAMS, TWO DIFFERENT JOBS

HOW IT DIFFERS FROM THE OTHER COMMERCIAL PATHS

BANK FINANCING: PUBLISHED TERMS

WHO SBA FINANCING IS FOR

HOW AN SBA LOAN CLOSES

WHAT SBA FINANCING COVERS

BORROWERS, IN THEIR WORDS

SBA 7(A) & 504 LOANS: QUESTIONS

SUBMIT A LOAN REQUEST

SBA 7(A) & 504 LOANS

SBA 7(A) & 504 LOANS

TWO PROGRAMS, TWO DIFFERENT JOBS

HOW IT DIFFERS FROM THE OTHER COMMERCIAL PATHS

BANK FINANCING: PUBLISHED TERMS

WHO SBA FINANCING IS FOR

HOW AN SBA LOAN CLOSES

WHAT SBA FINANCING COVERS

BORROWERS, IN THEIR WORDS

SBA 7(A) & 504 LOANS: QUESTIONS

01 What is the difference between SBA 7(a) and SBA 504?

02 How much of the building must my business occupy?

03 How much do I need to put down?

04 Do I have to sign a personal guarantee?

05 What rate do SBA loans carry?

THIS PROGRAM

OTHER PRODUCTS HERE

SCENARIOS & PROPERTY TYPES

READ AND APPLY

WHERE WE LEND IT

SUBMIT A LOAN REQUEST