Two powerful loan programs. One goal: Helping your business grow.
When you’re ready to fund expansion, buy property, or invest in long-term assets, SBA loans can make it happen. Two of the most popular options are the SBA 7(a) and SBA 504 loan programs. Each serves a different purpose—and knowing which is right for your business is the first step to securing the right funding.
What’s the Difference Between 7(a) and 504 Loans?
Feature |
SBA 7(a) |
SBA 504 |
|---|---|---|
| Best For | Working capital, business acquisitions, real estate, equipment, debt refi | Real estate purchase, construction, long-term equipment |
| Loan Amounts | Up to $5 million | Up to $15 million |
| Terms | Up to 25 years for real estate; 10 years for other uses | Up to 25 years for real estate; 10 years for equipment |
| Interest Rates | Fixed or variable | Fixed or variable |
| Eligibility | Must be for-profit, meet SBA size standards, and show ability to repay | Must be for-profit, net worth < $20M, net income < $6.5M |
| Administered By | SBA-approved lenders (like us!) | SBA-approved lenders + Certified Development Companies (CDCs) |
| Use for Working Capital? | ✅ Yes | ❌ No |
| Use for Real Estate? | ✅ Yes | ✅ Yes |
| Use for Equipment? | ✅ Yes | ✅ Yes (only long-term equipment) |
Not sure which loan fits your business best? SBA Loan Guy can walk you through the options and help you apply with confidence.
What Documents Do I Need to Apply?
Getting approved for either a 7(a) or 504 loan starts with having the right documents. Here’s what you’ll need:
1. Personal and Business Information
You’ll need to provide key information about your business and ownership structure, including:
- Business name, address, and contact info
- Tax ID numbers (EIN and SSN for owners)
- Business legal structure (LLC, S-Corp, etc.)
- List of all owners with 20% or more ownership
- Ownership percentages and bios
Make sure the details are accurate—mistakes or mismatches can slow down your application.
2. Financial Statements & Tax Returns
These help lenders assess your creditworthiness and repayment ability:
- Personal financial statement (SBA Form 413)
- Business balance sheets (last 2–3 years)
- Profit & Loss (P&L) statements
- Year-to-date P&L
- Business tax returns (last 2–3 years)
- Personal tax returns (last 2 years)
Organized, up-to-date records show you’re serious—and ready.
3. Collateral Documentation
Collateral may be required—especially for larger loan amounts or if credit is borderline. Documents include:
- Real estate deeds or titles (personal or business-owned)
- Equipment lists with estimated values
- Appraisals (if available)
- Any current business loan documentation
- Purchase agreements (if you’re acquiring a business or asset)
4. Required SBA Forms
These standard forms are part of every application:
- SBA Form 1919 – Borrower Information Form
- SBA Form 413 – Personal Financial Statement
- Additional lender-specific forms (we’ll help you with these)
Ready to Get Started?
Whether you’re aiming to buy property, acquire another business, or finance expansion, SBA 7(a) and 504 loans offer the capital and flexibility to get there. SBA Loan Guy is here to help you compare options, gather documents, and secure funding without the stress.
Let’s get you funded. Contact us today.