What a SBA Loan Is
SBA loans are small-business loans partially guaranteed by the U.S. Small Business Administration, reducing lender risk and often enabling lower down payments and longer terms — including for owner-occupied commercial real estate.
Who It's For
- Small business owners acquiring a business or partner buyout
- Owner-occupants buying their commercial premises
- Businesses funding expansion or major equipment
- Entrepreneurs needing longer terms and lower down payments
How It Works
The SBA guarantees a portion of the loan, lowering lender risk. The 7(a) program is versatile (working capital, acquisition, real estate); the 504 program targets owner-occupied real estate and major fixed assets. Qualification weighs business financials, owner experience, and use of funds.
Frequently Asked Questions
What's the difference between SBA 7(a) and 504?
7(a) is versatile — working capital, acquisition, or real estate. 504 targets owner-occupied real estate and major fixed assets with a specific structure. We'll help identify the right fit.
Do SBA loans have lower down payments?
Often yes — the SBA guarantee can enable lower down payments and longer terms than conventional business financing.
What do I need to qualify?
Generally solid business financials, relevant owner experience, and a qualifying use of funds. Requirements vary by program.