SBA Loan Down Payment, Rates, and Terms Explained

SBA loans trade a slower process for a low down payment and a long, affordable term. Here is what to expect on the numbers so you can compare an SBA deal against bridge or conventional financing.

Down payment

Most SBA real estate loans require a down payment of around 10%, rising to 15% to 20% for startups or special-purpose properties. On the right deal, the SBA structure we arrange through our partner lenders can finance up to 90%, which preserves cash that an owner-user can put back into the business.

Terms

Real estate is amortized up to 25 years, which keeps the monthly payment low. That long term is the single biggest reason owner-users choose SBA over a shorter commercial loan that balloons in five to ten years.

Rates

• 7(a): usually variable, tied to the Prime rate.
• 504: a long-term fixed rate on the CDC portion, with the bank portion priced separately.

Because we place your file across 20+ SBA lenders, we shop the scenario rather than take the first quote.

The full cost picture

Factor in SBA guarantee fees, third-party reports, and a 30 to 90 day timeline. The payoff is a low-equity, long-term loan whose total cost usually beats short-term financing for a business that plans to hold the property.