•Business Working Capital & Equipment

•Purchase & Refinance

•Owner User LTV 75-90%

•Rates from 10%

•7-25 Year Terms

•Up to 25 Year Amortization

•Fees 1.5-3%

•Recourse & Limited Recourse

•Small Business Administration

•Real Estate, Business, & Equipment

•Purchase, Refinance, & Construction

•Owner User LTV 75-90%

•Rates from 10%

•10-25 Year Terms

•Up to 25 Year Amortization

•Fees 1.5-3%

•Recourse & Limited Recourse

•Small Business Administration

•Real Estate & Equipment

•Purchase, Refinance, & Construction

•Owner User LTV 75-90%

•Rates from 10%

•10-25 Year Terms

•Up to 25 Year Amortization

•Fees 1.5-3%

•Limited Recourse

•Small Business Administration

•Working Capital

•Acquisitions

•Equipment

•Owner User Purchase

•Refinance

•New Construction

When it comes to small business loans, there are a variety of options available, and two popular choices are the SBA 504 and 7a loans. The decision of which loan to choose will depend on the purpose of the loan. If you're looking to purchase commercial real estate or heavy machinery/equipment, the SBA 504 loan is often the best option. On the other hand, if your goal is to purchase a business or obtain working capital, the SBA 7a loan may be more suitable.

The SBA 504 loan is primarily used for commercial real estate financing for owner-occupied properties. With this loan, funds can be used to purchase a building, finance new construction, or make building improvements, as well as to purchase heavy machinery and equipment. The SBA 7a loan, on the other hand, can be used for a variety of purposes such as buying an existing business, obtaining working capital, refinancing business debt, or purchasing furniture, fixtures, and supplies.

One of the key differences between these two loans is the amount that can be borrowed. The maximum loan amount for an SBA 504 loan is $20 million, while the maximum loan amount for an SBA 7a loan is $5 million. Additionally, the SBA 504 loan is amortized over 20 years while SBA 7a loans are amortized over 25 years.

Another key difference between these two loans is the interest rate and collateral requirement. The interest rate on an SBA 504 loan is fixed, and no collateral is required. On the other hand, the interest rate on an SBA 7a loan can be adjustable and may be tied to the prime interest rate. Collateral is also required for an SBA 7a loan, at 90 percent.

Additionally, the fee structure for these loans is different. SBA 504 loans tend to have lower fees compared to SBA 7a loans, which tend to rise with the size of the project. Furthermore, the down payment required for a $1.25 million 7a loan is $187,500 while it is $125,000 for a 504 loan, which means that there would be a significant out-of-pocket savings to the borrower if the property was financed with a 504 loan.

Overall, while both the SBA 504 and 7a loans have their own unique features, it's important to understand the purpose of the loan and the specific characteristics of each loan to determine which one is the best fit for your business.

•Loan Application

•660 FICO Score

•$100,000 in Annual Revenue

•2 Years of Business Tax Returns (Form 1120-S, 1065, or 1040 Schedule C)

•2 Years of Personal Tax Returns (Form 1040)

•6 Months of Business Bank Statements

•Profit and Loss Statement (Matching Balance Sheet date)

•Balance Sheet (Matching P&L date)

•Pro Forma Projections 2023-2025

•Purchase Price, NOI, Taxes, & Insurance

•No Criminal Record, Foreclosures, or Bankruptcies Within 3 Years

We conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, the lenders with whom we work will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and happens after your application is in the funding process and matched with a lender who is likely to fund your loan.