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SBA 7(a) Loan SBA 504 Loan Conventional
Use General Purpose Real Estate & Equipment General Purpose
Loan Size $350,000 to $5,000,000 $2,000,000 to over $15,000,000 Unlimited
Interest Rate
  • Variable or fixed rate
  • Fully amortized through the term of the loan
  • Interest rates are based on the current market conditions with various indexes up to prime and individual loan review
  • Variable or fixed rate
  • Fully amortized through the term of the loan
  • Interest rates on 504 loans are set at an increment above the current market rate for five-year and ten-year U.S. Treasury issues
Variable or fixed rate
Terms Available & Amortization Periods
  • 25 years: real estate
  • 10 years: equipment, business acquisition
  • 5 to 7 years: working capital
  • All loans are fully amortized
  • No balloon payments
  • 20 years fully amortized real estate loan
  • 10 years fully amortized equipment loan
  • No balloon payments
  • Typically 20 year amortization for real estate with 5 year balloon
  • 10 year balloon
  • 5 Years: equipment
  • Typically 1 year line of credit working capital
Loan Purpose
  • Expand, acquire or start a business
  • Purchase or construct real estate
  • Refinance existing business debt
  • Buy equipment
  • Provide working capital
  • Finance building improvements
  • Purchase inventory
  • Purchase existing building
  • Land acquisition
  • Ground up construction
  • Expansion of existing building
  • Finance building improvements
  • Purchase equipment
  • Expand or acquire a business
  • Purchase or construct real estate
  • Refinance existing business debt
  • Buy equipment
  • Provide working capital
  • Construct leasehold improvements
  • Purchase inventory
Loan Structure
  • Up to 90% bank loan
  • 10% borrower down payment
  • 50% bank loan
  • Up to 40% CDC loan
  • 10% borrower down payment
  • Up to 80% bank loan
  • 20% borrower down Payment
  • Plus closing costs
Loan Fees
  • 1.75% – 2.75% of loan depending on size
  • Fees rolled into loan
  • Weighted average fees for both loans are 2%
  • Fees rolled into loan
  • Up to 1% origination fee
  • Fees paid at closing