SBA loans, explained by the people who close them
Plain-English guides, calculators, current rates, and a decade of SBA loan data, written by direct SBA 504 lenders. Learn at your own pace. When you're ready to finance, we do that too.
A few quick questions, a personalized report. Not an application, no obligation.
Where are you in the process?
Pick the door that matches your question. Everything on this site is organized around six of them.
SBA 504 vs 7(a), one ledger
The two programs solve different problems. If your project is commercial real estate, start in the left column.
| SBA 504 Best for real estate |
SBA 7(a) General purpose |
|
|---|---|---|
| Loan size | Up to $12.5 million, more in some cases | Capped at $5 million |
| Term | Up to 25 years in most cases | 5 to 25 years depending on collateral |
| Rates | 6% to 8% blended. See current rates | 7.5% to 10% variable, priced over WSJ Prime |
| Uses | Real estate, construction, equipment, FF&E | Working capital, acquisitions, equipment, real estate |
| Credit | No set minimum; most lenders look for 670+ | No set minimum; most lenders look for 670+ |
| Down payment | 10% for most projects | 10% for most projects |
| Timing | 30 to 60 days after complete package | 30 to 60 days after complete package |
See where you stand before you talk to anyone
Answer a short online questionnaire about your business and your project. We'll send you a free personalized financing analysis built by the same team that underwrites our loans.
- Your estimated rate, monthly payment, and loan structure
- The strengths in your profile that lenders will notice
- A few quick questions. No documents needed to start
Not an application and not a commitment. Figures are estimates subject to underwriting.
We analyze every SBA 504 loan the government approves
Our guides and industry pages are built on a decade of loan-level SBA data obtained by FOIA request and refreshed quarterly. Not opinions. Approvals.
Source: SBA 504 loan approvals, FY2015 to FY2025. Data via FOIA request, updated quarterly. Read the reports on our Data & Insights page.
Explore SBA 504 loans by industry
A decade of loan data, case studies, and deal structures for each of the property types we finance most.
Start with the right guide
Everything a borrower needs to go from first question to closing table, in plain English.
Want the whole picture in one place? Read the SBA 504 Ultimate Loan Guide or browse the SBA 504 FAQs.
The latest from our SBA data desk
Reports and analysis built from the FOIA dataset, published as the numbers come in.
SBA Region by Region Growth
Over the past decade, SBA 504 gross approvals increased from $4.3 billion in FY15 to $7.8 billion in FY25, an increase of…
Read the report → Report April 16, 2026SBA 504 Top 12 Sectors
SBA Industry Insights In the chart below we look at the major sectors making up SBA 504 lending. Each sector combines multiple…
Read the report → Report April 10, 2026Fastest Growing SBA 504 Industries
Fastest-Growing Industries in SBA 504 Lending # Industry FY2023 FY2024 FY2025 3-Yr Growth CAGR 1 Fitness & Recreational Sports Centers $105.0M $118.6M…
Read the report →Deals we closed while writing these guides
We write about SBA 504 loans because we close them, nationwide, as a direct lender.
SBA loan questions, answered
An SBA loan is financing partially guaranteed by the US Small Business Administration and issued through lenders like banks, credit unions, and private direct lenders. The guarantee lets lenders offer lower down payments and longer terms than conventional loans. The two flagship programs are SBA 504, built for commercial real estate and heavy equipment, and SBA 7(a), a general-purpose program for working capital, acquisitions, and more.
The SBA does not set a minimum credit score, but most lenders look for 670 or above. Strong cash flow, industry experience, and a solid project can offset a thinner credit profile. The fastest way to know where you stand is a short conversation with a lender.
Most SBA 504 projects close with 10% down. The structure combines a 50% first lien from a bank or private lender, a 40% SBA-backed second lien through a Certified Development Company, and your 10% equity. Startups and special-purpose properties may require 15% to 20%.
SBA 504 is built for fixed assets: commercial real estate, construction, and long-life equipment, with 25-year fixed rates on the SBA portion. SBA 7(a) is a general-purpose program capped at $5 million with variable rates priced over WSJ Prime, and it can fund working capital and business acquisitions. If your project is real estate, 504 usually wins on rate and term.
Plan on 30 to 60 days from the time your complete loan package is received to closing for most SBA 504 and 7(a) loans. Construction projects and complex deals can take longer. A prepared borrower with clean financials moves through the process fastest.
Purchasing commercial real estate your business will occupy, ground-up construction, renovations and improvements, long-life equipment, and refinancing qualifying existing debt. Your business must occupy at least 51% of the financed property.
More questions? Browse the full SBA 504 FAQ library.
Ready when you are
Keep reading, run the calculators, or talk to a lender who closes SBA 504 loans every month. No application fee, no obligation.