SBA Loans

7(a) Loans | 504 Loans

Government Backed: Start-up Funding | Acquisition | Partner Buyout | Expansion | Real Estate


SBA Loans

7(a) Loans | 504 Loans

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Government Backed: Start-up Funding | Acquisition | Partner Buyout | Expansion | Real Estate


When should I used a SBA 7(a) Loan?


You can use 7(a) loans for working capital, business acquisition, partner buyouts, expansion and startup businesses.

There are a few special types of 7(a) loans that are well-suited for particular borrowers and businesses. One is the Express loan, which offers speedy processing times in exchange for smaller loan amounts, little to no collateral and slightly higher interest rates.

7(a) Terms

  • WSJ Prime + 2.75% Interest Rate (variable based on Prime)
  • Up to a 10 year term for inventory or working capital
  • Up to a 10 year term or the useful life for equipment, furnitures or fixtures
  • Up to a 25 years for real estate

Loan Amounts

  • Up to $5 million

SBA Fees

  • SBA Guarantee fee

Requirements

  • Collateral is required and may include owner’s personal residence
  • A personal guarantee of the loan

Speak with an expert about SBA Financing

When should I use a SBA 504 Loan?

504 Loan


SBA 504 loans are best for large real estate projects, expensive equipment or machinery purchases. This is because 504 loans are purpose-built for these tasks and therefore offer better rates and terms.

    504 Terms

      • 4% – 5% Interest Rate
      • Up to a 10 year term for machinery or equipment purchases
      • Up to a 20 year term for real estate

      Loan Amounts

      • Up to $5 million

      SBA Fees

      • CDC servicing fee
      • Central servicing agent fee
      • Borrower SBA fee

      Requirements

      • Collateral is generally the assets being financed
      • A personal guarantee of the loan
      • Declining prepayment penalty for half of the loan term

      504 Terms

        • 4% – 5% Interest Rate
        • Up to a 10 year term for machinery or equipment purchases
        • Up to a 20 year term for real estate

        Loan Amounts

        • Up to $20 million or more ($5 – $5.5 million for CDC portion of loan)

        SBA Fees

        • CDC servicing fee
        • Central servicing agent fee
        • Borrower SBA fee

        Requirements

        • Collateral is generally the assets being financed
        • A personal guarantee of the loan
        • Declining prepayment penalty for half of the loan term

        Speak with an expert about SBA Financing