Compare Loan Options
Not sure which loan is right for you? Compare SBA 7(a), SBA 504, and conventional loans side by side.
SBA 7(a)
Most versatile — works for CRE, equipment, working capital, acquisitions, startups, refinancing
Max Amount$5 million
TermsUp to 25 years (CRE), 10 years (equipment)
Current Rates9.00% – 9.75%
Down Payment10-20%
Guarantee75-85% SBA guaranteed
Closing Time30-90 days
Pros
Most flexible use of funds
Lower down payments than conventional
Longer terms = lower payments
Available for startups with strong plans
Cons
SBA guarantee fee (2-3.75%)
More paperwork than conventional
Personal guarantee required
SBA 504
Commercial real estate and heavy equipment only — not for working capital
Max Amount$5.5 million (CDC portion)
Terms10 or 20 years fixed
Current Rates~6.5% – 7.5% fixed
Down Payment10%
GuaranteeCDC provides 40%, lender 50%, borrower 10%
Closing Time60-120 days
Pros
Lower fixed rates
Only 10% down
No balloon payments
Long-term fixed rate
Cons
CRE and equipment only
Cannot use for working capital
Longer processing time
Must occupy 51%+ of property
Conventional
Strong borrowers who want speed and simplicity — but need more cash upfront
Max AmountVaries by lender
Terms5-20 years (often with balloon)
Current Rates8% – 12%+
Down Payment20-30%
GuaranteeNo government guarantee
Closing Time14-45 days
Pros
Faster closing
Less paperwork
No SBA fees
More lender flexibility
Cons
Higher down payments
Shorter terms
Balloon payments common
Harder to qualify without strong financials
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