SBA 7(a) & 504 Loans

The Small Business Administration offers many programs to help new companies and growing communities.  These programs include attractive loan arrangements that can give  your business the boost it needs in a competitive market.

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Although the SBA offers a broad range of financial services to help small businesses secure the financing they need.  The SBA 7(a) and the SBA 504 loan programs stand out as the most popular lending options. The two loans have similar qualification requirements, allowed uses, and interest rate limits. In both cases, your business must be a for-profit operating in the United States. Your net annual income cannot exceed $5 million and your firm’s net worth cannot exceed $15 million.  Additionally, certain restrictions apply to businesses focused on gambling, speculation, lending, and religious education.

 

The SBA then works with lenders to function as a guarantor, encouraging lenders to offer to finance when they might otherwise hesitate.  While the regulations may seem intimidating, our partners are experienced and can generate loans for you in conformance to SBA guidelines.

SBA 504 Loan
This loan can be used for real estate, equipment, and construction purposes. You must apply for the loan through a Certified Development Company (a local non-profit authorized by the SBA). The SBA then works with a private lender to provide you with funding. The generated loan consists of a 10% down payment, 40% in SBA funding, and 50% in private funds. Contact us today to learn more and begin the process.
SBA 7(a) Loan
This is the more flexible option of the two, as it can be used for short-term and long-term working capital, in addition to the items that the SBA 504 covers. Applications for this loan primarily go through private lenders, instead of a Certified Development Company. Our vast network of lenders includes partners who specialize in small business loans and can help you today.

Advantages of SBA Loans

  • SBA-regulated interest rates.
  • No balloon payments.
  • Fixed interest rates for SBA 504 loans.
  • Fast approvals for SBA 7(a) loans
  • Advantages for women and minority-owned businesses.

Frequently Asked Questions

01

Loan

If your net annual income exceeds $5 million, or if your business falls under one of the SBA’s restricted categories (such as a non-profit), you may have difficulty obtaining financing. If this is the case for your firm, let our experts find a personalized alternative for your business today.

02

Can I apply for a loan directly with the SBA?

No, the SBA does not offer direct financing. That is why it’s important to connect with a qualified lender. We have strong relationships with CDC lenders and other SBA-compliant private lenders that can help you navigate the process.

03

Does the SBA offer other loans?

There are several variations on the SBA 7(a) loan as well as minority-focused financing. If you’d like to explore more options with the SBA financing, please don’t hesitate to contact our team.

04
The SBA does not have any direct credit requirements for applications. Most lenders that work with the SBA, however, will assess your credit score. While the final number may vary, most lenders seek a minimum score of 680 for both the 504 and 7(a) programs.