SBA Financing

SBA 504 & 7(a) Commercial Loans

SBA loans offer below-market rates and high leverage for qualifying owner-occupied commercial properties. The SBA 504 program provides up to 90% financing with long-term fixed rates, while the 7(a) program offers flexible terms for business acquisitions, expansions, and working capital. These programs are specifically designed for small businesses that occupy at least 51% of the property.

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Key Features

SBA Loans at a Glance

Loan Amount

$1M - $20M

Term

5 - 25 Years

Rates

5.54% - 8.25%

Ltv

Up to 90% LTV (504)

Equity

As Low as 10% Down

Recourse

Full Recourse (Personal Guarantee)

Overview

SBA 504 & 7(a) Loans for Owner-Occupied Properties

The U.S. Small Business Administration partners with banks and Certified Development Companies (CDCs) to provide guaranteed lending programs that reduce risk for lenders and increase access to capital for small business owners. The 504 program features a unique two-loan structure: a first mortgage from a bank (50% LTV) and a second position CDC/SBA loan (40% LTV), with only 10% borrower equity required. The 7(a) program provides a single-source loan with an SBA guarantee up to 85%.

Lender Sources

SBA-Approved Banks
Certified Development Companies (CDCs)
Credit Unions
Community Banks

Ideal For

Owner-occupied office buildings
Restaurant and hospitality acquisitions
Medical and dental practices
Retail storefronts and service businesses
Industrial and manufacturing owner-users
Business expansions and equipment purchases

Track Record

SBA Loans Transactions

A selection of sba loans we have closed across the country.

Permanent

$9,800,000

Retail Center

Denver, CO

SBA 504 financing for an owner-occupied retail plaza in Denver’s Cherry Creek North corridor, anchored by a medical services tenant and benefiting from strong daytime foot traffic.

Permanent

$8,500,000

Retail Center

New York, NY

SBA 504 financing for an owner-occupied retail property on Staten Island’s Hylan Boulevard, one of the borough’s highest-traffic commercial corridors with strong neighborhood-serving tenant demand.

Permanent

$4,200,000

Retail Center

Tucson, AZ

SBA 504 financing for an owner-occupied retail property on Tucson’s Fourth Avenue, a high-foot-traffic dining and entertainment district adjacent to the university and downtown cultural attractions.

sba

$4,200,000

Office Building

Denver, CO

SBA 504 owner-occupied financing for a medical office building near the Anschutz Medical Campus, supporting a growing multi-specialty practice expansion.

Restaurant & Coffee Shop - Santa Ana, CA

Permanent

$1,380,000

Restaurant & Coffee Shop

Santa Ana, CA

SBA financing for an owner-operated restaurant and coffee shop in downtown Santa Ana's revitalized arts district.

SBA Loans by City

Related Property Types

SBA Loans are available for all major commercial property types. Explore financing by property category.

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SBA Loans in Tampa: What Borrowers Need to Know

Everything you need to know about sba loans in Tampa, including current rates, qualification requirements, capital sources, and market-specific strategies for commercial real estate borrowers.

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FAQ

SBA Loans FAQ

An SBA 504 loan is a government-backed financing program for owner-occupied commercial real estate. It features a unique two-loan structure: a first mortgage from a bank (50% LTV) and a second position loan from a Certified Development Company backed by the SBA (40% LTV), requiring only 10% borrower equity.

SBA 504 loans are specifically for real estate and major equipment with fixed rates, while SBA 7(a) loans are more flexible and can fund real estate, working capital, equipment, and business acquisitions. 504 loans offer lower rates but more restrictions, while 7(a) loans offer broader use of proceeds.

SBA loans are available to for-profit small businesses that occupy at least 51% of the property (existing buildings) or 60% (new construction). The business must meet SBA size standards, be located in the U.S., and the owner must have reasonable equity to invest.

SBA 504 loan rates are based on 5, 10, or 20-year Treasury rates plus a fixed spread, typically ranging from 5.54% to 6.50%. SBA 7(a) rates can be fixed or variable, typically prime rate plus 1.50% to 2.75%, with current effective rates around 7.50% to 9.75%.

SBA loans typically take 60-120 days to close due to the dual-lender structure (504) or SBA authorization process (7(a)). The timeline includes bank underwriting, SBA approval, appraisal, environmental review, and legal documentation.

No. SBA loans require the business to occupy at least 51% of the property. They cannot be used for pure investment properties. However, the remaining 49% can be leased to other tenants, making SBA loans excellent for businesses that want to own their space and generate rental income.

Ready to Get SBA Financing?

Contact CLS CRE for a free, no-obligation quote on sba loans. We respond within 24 hours.

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SBA 504 & 7(a) Commercial Loans

SBA Loans at a Glance

SBA 504 & 7(a) Loans for Owner-Occupied Properties

Lender Sources

Ideal For

SBA Loans Transactions

SBA Loans by City

Related Property Types

Related Insights

SBA Loans in Boston: What Borrowers Need to Know

SBA Loans in Charlotte: What Borrowers Need to Know

SBA Loans in Tampa: What Borrowers Need to Know

SBA Loans FAQ

Ready to Get SBA Financing?

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