SBA 504 Loan Comparison

Why choose SBA 504 financing?

When you compare, the SBA 504 program has distinct advantages over the 7(a) program or conventional financing.

  • As low as 10% down, preserves your working capital
  • Below-market, FIXED interest rates
  • Lowest up-front costs
  • Closing and other soft costs can be rolled into loan
  • No maximum loan amount
  • Multiple loan limits removed when energy efficiencies are implemented
  • No additional collateral required

SBA 504 Loan Comparison
vs. 7(a) & Conventional

Compare financing options in the chart below, then contact our SBA loan experts to learn more.

SBA 504 SBA 7(a) Conventional
Down Payment 10% minimum 10-15% minimum 25-40%
Interest Rates SBA second mortgage at below-market rates, fixed for 20 years Typically variable; tied to prime Varies by lender
Fees Included in SBA loan; approximately 2.15% Paid out-of-pocket; typically about 2.75% Paid out-of-pocket; approximately 1%
Project Size No maximum Maximum loan amount $5 million No maximum
Collateral No additional collateral required Additional collateral typically required for 90% financing Typically no additional collateral required
Prepayment Penalty Yes, for first 10 years, declining each year Yes, typically in first three years Varies by lender

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