With an SBA loan, your business can take advantage of more flexible terms.
Can you use an SBA loan?
If you have a growing business, SBA financing can help you to:
- Purchase, renovate or upgrade real estate to operate your business, construct a business facility or make improvements to an owner-occupied property
- Purchase fixed assets including heavy machinery or specialized equipment
- Borrow working capital to manage day-to-day cash flow and purchases.
SBA 7(a) can provide funds for a variety of business purposes, including funding equipment purchases, business acquisitions or expansion, finance permanent working capital or purchase real estate.
SBA 504 Loan Program
These loans are generally designated for projects over $500,000 and can be used to purchase real estate or equipment.
Loan and Line Amounts
SBA 7(a) Program: Up to $2,000,000
SBA 504 Loan Program: Generally used for projects greater than $500,000
Annual Percentage Rate
Fixed or variable rates for loans, and variable rates for lines of credit.
SBA 7(a): Fixed rates are available for up to seven years. Variable rates are indexed to the Wall Street Journal Prime rate plus a margin.
SBA 504 Loan Program: Fixed or variable rates are available depending upon the term of loan.
SBA fees, packaging fees, or origination fees may apply and will vary based upon the type and the term of the loan.
SBA 7(a): Working capital loans - up to 7 years. Equipment loans - up to 10 years. Real estate loans - up to 25 years.
SBA 504 Loan Program: Terms are typically from 10 to 20 years.