SBA 7(a) Loan SBA 504 Loan
Typical Project Size $250,000 to $5 million $1 million to $21 million
Interest Rate
  • Competitive market rates
  • Below-market rates
  • Long-term fixed rates
Term/Amortization
  • 25 years for real estate
  • 10 to 15 years for equipment
  • 10 years for business acquisition
  • All loans are fully amortized
  • No balloon payment
  • 25 years for real estate
  • 10 years for equipment
  • All loans are fully amortized
Loan Purpose
  • Purchase, construct or expand a real estate facility
    • 51% owner occupancy for existing buildings and 67% for new construction
  • Purchase equipment
  • Refinance existing debt
  • Provide working capital
  • Construct leasehold improvements
  • Inventory
  • Purchase, construct or expand a real estate facility
    • 51% owner occupancy for existing buildings and 67% for new construction
  • Purchase equipment
Down Payment/Loan-to-Value
  • 10% for business acquisition
  • Up to 100% financing for expansion or refinance
  • 10% of eligible project costs for multipurpose or special purpose properties
  • 10% of eligible project costs for established business in multipurpose property
  • 15% of eligible project costs for special use property
  • 10% minimum injection for equipment
Qualification Criteria Including its affiliates, tangible net worth not in excess of $15 million and average net income after Federal income taxes (excluding any carryover losses) for the preceding two completed fiscal years not in excess of $5 million. Including its affiliates, tangible net worth not in excess of $15 million and average net income after Federal income taxes (excluding any carryover losses) for the preceding two completed fiscal years not in excess of $5 million.