SBA 504 vs. 7(a) Loans for Commercial Real Estate
Bill Ebersole explains the differences between the SBA 504 and 7(a) lending programs in regard to commercial real estate financing. The 504 Loan Program ...
Loans Similar To Sba504 – A personal loan is not the same as a property mortgage or an auto loan. Personal loans allow you to borrow and use the money for what you need. However, like other types of loans, a personal loan must be paid back to the lender in full within the specified time period. Your lender’s loan agreement will detail how much time you have to repay your loan.
504 refinancing loans are very similar to standard 504 loans, and will require that you work with both a CDC and a private lender. In addition to opening up working capital for the company, refinancing existing debt can make good sense for a number of other reasons, including: Being able to lock in below market rates on the debt
7(a) Small Loans: This program is designed for businesses with smaller financial needs, generally maxing out at $350,000. With that being said, other than the maximum amount, most of the other details are the same as the standard 7(a) loan. However, note that the SBA does score your credit on this loan.
The SBA offers six types of SBA loans that provide affordable financing for small business owners that might otherwise be difficult to obtain. While the purpose and terms of each of the types of SBA loans vary, they’re similar in that the SBA doesn’t issue the loans, except for Disaster loans.
Start or expand your business with loans guaranteed by the Small Business Administration. Use Lender Match to find lenders that offer loans for your business. Start or expand your business with loans guaranteed by the Small Business Administration. Use Lender Match to find lenders that offer loans for your business.
If you’re looking for a small business loan to purchase commercial real estate or heavy machinery/equipment, the SBA 504 loan is the best choice. If purchasing a business or getting working capital is the goal, the SBA 7A loan is likely the better tool.