SBA 7(a)
SBA 504
Rates
Prepayment
Fees
Repayment
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%
Use
Purchase land, existing building, improvements, construction, equipment
Working capital, FF&E, business acquisition, debt refinancing, real estate