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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SBA Loans at a Glance

Loan Amount
$250K - $14M
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)

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

SBA Loans Transactions

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

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.

Related Property Types

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

Related Insights

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.

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