Question 1

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

Accepted Answer

The 7(a) is the flexible, all-purpose SBA loan: owner-occupied real estate, business acquisition, partner buyouts, equipment, and working capital under one note. The 504 is purpose-built for owner-occupied commercial real estate and heavy equipment, with a long-term fixed rate and a low down payment. We place both and match your scenario to the right one.

Question 2

How much can I borrow, and how much do I put down?

Accepted Answer

SBA loans go up to $5M, with larger total project sizes possible on the 504 since a bank funds part of the deal. Down payments are low, often around 10%, rising to 15% to 20% for startups or special-purpose properties. On the right deal we finance up to 90%.

Question 3

What are the terms and rates?

Accepted Answer

Terms run up to 25 years for real estate, which keeps payments low. 7(a) rates are usually variable and tied to the Prime rate, while the 504 carries a long-term fixed rate on the CDC portion. Because we place your file across 20+ SBA lenders, we shop your scenario for the strongest terms.

Question 4

Do I have to occupy the property?

Accepted Answer

Yes. SBA real estate loans require owner-occupancy, at least 51% of an existing building or 60% of new construction. That requirement is what separates SBA-eligible deals from pure investment property, which fits our other programs.

Question 5

Do I have to personally guarantee an SBA loan?

Accepted Answer

Yes. The SBA requires a personal guarantee from anyone who owns 20% or more of the business, and on real-estate deals the loan is also secured by the property. This is standard on every SBA loan, not a sign of a weak file, and it is part of why SBA financing offers low down payments and long terms. We will walk you through exactly what you are signing before you commit.

Question 6

How long does an SBA loan take to close?

Accepted Answer

SBA loans are slower than our bridge products, typically 30 to 90 days, because of the documentation and approval process. The tradeoff is a much lower long-term cost. If you need speed now, we can bridge the deal and refinance into SBA later.

Question 7

What do you need to get started?

Accepted Answer

Generally two to three years of business and personal tax returns, business financials, a personal financial statement, and details on the property or business. We will tell you exactly what is needed and place your file with the best-fit lender in our network.

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