Accessing the right financing can make all the difference in achieving your goals.  I’m here to help you navigate the world of SBA loans.

Two popular options are the SBA 7(a) and 504 loan programs. Let’s break down the key differences:

SBA 7(a) Loan Program:

* Loan amount:** Up to $5 million

* Down payment:** 20% (10% for startups)

* Use of funds:** Can be used for a variety of purposes, including:

1. Working capital
2. Equipment purchases
3. Real estate acquisition or refinance
4. Business acquisition

* Interest rates:** Typically 7-9%

* Fees:** 2-3% guarantee fee + 0.5% servicing fee

SBA 504 Loan Program:

* Loan amount:** Up to $5.5 million (or $5.5 million + $500k for 504/7a combo)

* Down payment:** 10% to 20%

* Use of funds:** Limited to:

1. Purchasing or refinancing commercial real estate
2. Buying equipment or machinery

* Interest rates:** Typically 4-6% (fixed rate for 10-25 years)

* Fees:** 2.5% debenture fee + 0.5% servicing fee

**Key differences:**

* Loan purpose:** SBA 7(a) is more versatile, while SBA 504 is geared towards real estate and equipment purchases.

* Interest rates:** SBA 504 offers more competitive rates, but with a fixed rate for a longer term.

* Fees:** Both programs have similar fees, but SBA 504 has a slightly higher debenture fee.

**So, which one is right for your business?**

Consider the SBA 7(a) loan program if:

1. You need a more flexible loan with multiple uses.
2. You’re looking for a loan with a lower down payment requirement.

Consider the SBA 504 loan program if:

1. You’re looking to purchase or refinance commercial real estate.
2. You want a fixed interest rate for a longer term.

**Ready to explore your SBA loan options?** I’m here to help! Send me a message or give me a call to discuss your business goals and determine which loan program is best for you.

NMLS: 2533210

Co NMLS: 2014622