SBA 7(a)

SBA 504





Down Payment

At least 10% down, 90% or less bank loan

10% down, up to 40% CDC loan, 50% or more bank loan

20 or 25 years for real estate, 10 years for machinery or equipment purchases 

10 years for inventory or working capital, 10 years or useful life of FF&E, 25 for real estate 

3% of the SBA guaranteed portion for loans between $150M-$750M, 3.5% for loans above $750M, 3.75% over $1MM

2.65% one-time loan fee, financed in the loan. One-time SBA fee of .5% to lender.

1.093% ongoing servicing fee  

Yes, for the first 3 years with terms of 15 years of less 

Yes, declining prepayment penalty for the first half of the loan term 

6.75% - 9.25%

4.93% - 5.64%


Purchase land, existing building, improvements, construction, equipment

Working capital, FF&E, business acquisition, debt refinancing, real estate