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Program 10
SBA Financing in Sherman
Sherman business owners, matched to 7(a) or 504 SBA loans.
When a deal calls for long-term, government-backed financing, we place SBA 7(a) and 504 loans through relationships with more than 20 SBA lenders, matching your scenario to the right program and the terms that fit it. Two semiconductor buildouts sit in Sherman, Texas Instruments' SM1 fab and GlobiTech's wafer expansion, and the gas, chemical, calibration, and staffing businesses that supply a project like that are the natural 7(a) and 504 borrowers in this county. Owning the building your business operates from is the usual reason to reach for one. Business-purpose only, and every structure is set in underwriting.
7(a) & 504
programs
90%
financing
25-yr
terms
20+
SBA lenders
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
SBA loans offer low down payments and long amortizations for owner-occupied property and business acquisition. USA Mortgage arranges and places SBA financing through our network of partner lenders; we are not ourselves an SBA lender. We shop your file across that network so you get the strongest approval.
Who it's for
Owner-occupied commercial RE
Business acquisition
Real estate plus equipment
Partner or stock buyout
Typical terms
Loan amount$350K to $5M+
FinancingUp to 90%
TermUp to 25 years
RateMarket SBA rates
PropertyOwner-occupied CRE
Programs7(a) and 504
*Typical terms, subject to underwriting and market conditions.
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Local FAQ
SBA Financing in Sherman, answered.
Why is Sherman actually a market for SBA owner-occupied real estate right now?
Because the supplier businesses around a semiconductor buildout are the natural 7(a) and 504 borrower profile. Texas Instruments began production at its SM1 fab in Sherman on December 17, 2025, with up to four connected fabs planned depending on market demand, and GlobiTech's 300mm wafer expansion at its existing Sherman plant was announced in June 2022 with 1,500 jobs and roughly $5 billion in capital investment, both announced commitments rather than current headcount. The gas, chemical, calibration, and staffing businesses that supply that kind of buildout are exactly the profile that reaches for a 7(a) or 504 loan to own their facility. See the SBA program page for how we structure a file.
How much of my Sherman building does my own business have to occupy?
51% of an existing building, but 60% if you're building new, and that second number is stricter than most people are told. Under 13 CFR 120.131, an existing building needs your operating business in at least 51% of the rentable space. New construction is different: you must occupy at least 60%, and only 20% of the space may be permanently leased to third parties, with the remaining 20% covered by an absorption plan reaching full occupancy within ten years. That distinction decides deals here: a supplier weighing a build-to-suit near the fab corridor against buying an existing Sherman building is choosing between the 60% rule and the 51% one, and the occupancy math can be what makes the project SBA-eligible at all. Talk to your attorney or CPA about how your lease plan lines up before you commit to a floor plan.
What will owning my building actually cost in Grayson County property tax?
It depends on which of the eight submarkets your building sits in, not on a single county rate. Every parcel carries the countywide base of 0.451080 per $100 of value (Grayson County plus the junior college), and the total stack on top of that runs from 1.929881 in Pottsboro to 2.318114 in Denison, with Sherman itself at 2.193280. There's no homestead exemption or appraisal cap on a commercial building, and some new-construction lots also sit inside a municipal utility district charging an additional 0.60 to 1.20 per $100. Pull the specific parcel's Grayson CAD account and check for a MUD or PID overlay before you underwrite the annual tax line.
How much cash do I need to put down on a 504 loan for a Sherman building?
Ten percent is the floor, not the rule, and a lot of the businesses this fits will land above it. Under 13 CFR 120.910, the borrower contributes 10% on an ordinary project, 15% if the business has operated under two years or the building is single purpose, and 20% if both are true. The 504 loan itself is capped at 40% of project cost, with a standard maximum of $5 million under 13 CFR 120.931, rising to $5.5 million only for small manufacturers or a qualifying energy project. A calibration or chemical-handling business supplying the TI or GlobiTech buildout is worth checking against that manufacturer carve-out before assuming the standard cap applies.
I heard SBA fees were waived. Does that apply to a Sherman closing this year?
No. Fees came back for fiscal 2026, and any page still saying otherwise is stale. For loans approved between October 1, 2025 and September 30, 2026, the 7(a) upfront guaranty fee is back at 2% to 3.5% and up depending on size, after being zero under $1 million in fiscal 2025. The 504 upfront fee returned at 0.50%, with the annual service fee cut to 0.209%. Budget the upfront fee into your closing costs. Small manufacturers under NAICS 31 to 33 are the exception: no 7(a) upfront fee at or under $950,000, and waived 504 fees, on top of the $5.5 million 504 cap, which is worth checking against if your business supplies either fab.
Which SBA lender or district office actually covers a Sherman deal?
We don't route you through a single district office; we place your file across a network of more than 20 SBA lenders and match it to whichever one fits your scenario. Grayson County's specific SBA district assignment and local 7(a) and 504 loan volume were not verified for this page, so we won't guess at a district name or a local approval count. What's confirmed is the borrower profile forming here: fab-adjacent suppliers who need owner-occupied real estate financed on 7(a) or 504 terms, and that's the scenario our lender network is built to place.
FAQ
SBA Financing questions, answered.
What is the difference between an SBA 7(a) and a 504 loan?
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.
How much can I borrow, and how much do I put down?
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%.
What are the terms and rates?
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.
Do I have to occupy the property?
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.
Do I have to personally guarantee an SBA loan?
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.
How long does an SBA loan take to close?
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.
What do you need to get started?
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.
Resources
Guides for SBA Financing
SBA · 5 min read
SBA 7(a) vs 504: Which Is Right for Owner-Occupied Real Estate?
Read the guide SBA · 5 min read
SBA 504 Loans for Owner-Occupied Commercial Real Estate
Read the guide SBA · 4 min read
SBA Loan Down Payment, Rates, and Terms Explained
Read the guide SBA · 5 min read
The $1M SBA Loan: What 7(a) and 504 Look Like at That Size
Read the guide More in Sherman
Other programs in Sherman
Fix and FlipUp to 90% / 100% rehabRental / DSCR30-yr fixed, DSCR from 0.75Ground-Up ConstructionUp to 70% LTV, most statesCRE BridgeUp to $10M, 24-36 moTransactional FundingSame-day double-close capitalBank Statement / No-DocNo tax returns requiredConventional InvestmentNon-owner-occupied investmentPortfolio LoansMultiple properties, one loanCRE PermanentLong-term agency & perm
About the local figures on this page
Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.
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