SBA 504 & 7(a) Loans for Commercial Real Estate

Own Your Building Instead of Renting

SBA loans are the most powerful tool for small business owners who want to own their commercial property. With just 10% down and below-market fixed rates for up to 25 years, SBA programs make commercial real estate ownership accessible and affordable.

Commercial Lending Solutions specializes in SBA 504 and 7(a) loans for commercial property. We guide you through the entire SBA process, from pre-qualification through closing, and connect you with SBA-approved lenders who offer the most competitive terms.

SBA 504 vs. SBA 7(a)

SBA 504

Best for purchasing property

Down Payment	10%
Max Loan	$5M-$5.5M (CDC portion)
Rate	Fixed (debenture rate)
Term	20-25 years
Occupancy	51%+ owner-occupied
Best For	Real estate purchase, ground-up construction, major renovations

SBA 7(a)

Best for flexibility

Down Payment	10-20%
Max Loan	$5M
Rate	Variable (Prime + spread)
Term	25 years (real estate)
Occupancy	51%+ owner-occupied
Best For	Real estate + working capital, business acquisitions, mixed-purpose

Who Qualifies for an SBA Loan?

Small business (meets SBA size standards for your industry)
51% or more of the property will be owner-occupied
Business has been operating for at least 2 years (startups possible with strong experience)
Good personal credit (typically 680+ for most SBA lenders)
Adequate cash flow to service the debt (DSCR 1.25x+)
No recent bankruptcies, foreclosures, or federal debt defaults
U.S. citizen or permanent resident

Eligible Property Types

Office buildings and professional spaces
Retail stores and shopping centers
Industrial and warehouse facilities
Medical and dental offices
Restaurants and hospitality
Auto repair shops and dealerships
Daycare centers and educational facilities
Mixed-use with 51%+ owner occupancy

The SBA Loan Process

Pre-Qualification

We review your business financials, credit, and property details to confirm SBA eligibility and estimate your loan terms.

Lender Matching

We present your deal to SBA-approved lenders who specialize in your property type and loan size, securing competing term sheets.

Application & Packaging

We help prepare your full SBA loan package, business plan, projections, personal financial statements, and all required SBA forms.

Underwriting & Closing

We coordinate with the lender, CDC (for 504 loans), appraiser, and title company to move your loan through underwriting to closing.

Why Work With an SBA Loan Broker?

Not all banks are equal, some SBA lenders are faster, more flexible, and offer better rates than others
We know which lenders approve which deal types (restaurant lenders vs. industrial lenders, etc.)
We help you avoid common SBA pitfalls that delay or derail applications
We prepare your loan package to lender standards, reducing back-and-forth
No upfront fees, we only get paid when your loan closes

Prefer to talk? Call the broker directly.

310.758.4042

Trevor Damyan · Mon-Fri 9am-5pm PT

Get Your SBA Loan Quote

Fill out the form below. We respond within 24 hours.

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Or use our full application · Call 310.758.4042

FAQ

SBA Loan Questions

The SBA 504 program requires just 10% down from the borrower. The remaining 90% is split between a conventional bank loan (50%) and a CDC/SBA debenture (40%). SBA 7(a) loans for real estate also typically require 10-20% down, depending on the lender and deal strength. This makes SBA loans one of the most affordable ways to purchase commercial property.

SBA loans typically take 60-90 days from application to closing, though some deals can close faster. The timeline depends on property type, appraisal turnaround, environmental reviews (Phase I), and how quickly you provide documentation. Working with an experienced SBA broker like Commercial Lending Solutions helps avoid common delays by packaging your application correctly from the start.

Yes, as long as your business occupies at least 51% of the building. Many SBA borrowers purchase buildings larger than they need, lease out the remaining space, and use that rental income to help qualify for the loan. For new construction, you must intend to occupy 60% within one year and 80% within three years.

Most SBA lenders require a minimum personal credit score of 680, though some will consider borrowers in the 650-680 range with compensating factors (strong cash flow, significant equity, industry experience). There is no set SBA minimum, each lender sets their own credit requirements. Commercial Lending Solutions knows which lenders are more flexible and can help match you accordingly.

SBA 504 loans are specifically designed for real estate and major fixed asset purchases. They offer below-market fixed rates (set by the SBA debenture rate) and require 10% down. SBA 7(a) loans are more flexible, they can be used for real estate, working capital, business acquisitions, and equipment, but rates are variable (Prime + spread). For pure real estate purchases, 504 usually offers better terms. For deals that combine real estate with other needs, 7(a) may be the better fit.

Important Loan Disclosures

Representative Example: A $2,000,000 SBA 504 loan at a 6.50% combined effective rate with a 25-year fully amortizing term would have an estimated monthly principal and interest payment of approximately $13,500. Total amount repayable over the life of the loan: approximately $4,050,000. This example is for illustrative purposes only; your actual rate, payment, and terms may differ.

Rate Range: SBA 504 and 7(a) loan rates currently range from approximately 6.00% to 7.25% combined effective rate, depending on program type, loan size, borrower qualifications, and market conditions at the time of funding.

Fees: Origination fees typically range from 0.5% to 2.0% of the loan amount. Additional costs may include appraisal ($3,000-$10,000), legal fees ($5,000-$15,000), title insurance, environmental reports, and third-party inspections. SBA-specific fees (guarantee fee, CDC processing fee) may also apply. All fees will be disclosed in writing before loan commitment.

Loan Terms: SBA loans offer 10-25 year terms, fully amortizing, with 10-20% down payment required. Personal guarantee and SBA guarantee are standard requirements. Owner-occupancy of 51% or more is required. Minimum credit score and business operating history requirements apply.

Risks: Commercial real estate loans carry inherent risks including but not limited to: property value decline, interest rate changes, inability to refinance at maturity, tenant vacancy, and potential loss of invested equity or the property itself. Borrowers should consult with qualified financial, legal, and tax advisors before committing to any loan.

Broker Disclosure: Commercial Lending Solutions (Commercial Lending Solutions) is a commercial mortgage brokerage, California DRE License #02244836. Commercial Lending Solutions does not make loans directly. All loans are originated and funded by third-party lenders. Commercial Lending Solutions receives compensation from the borrower, the lender, or both upon successful loan closing. Commercial Lending Solutions is not affiliated with or endorsed by any specific lender.

SBA 504 & 7(a) Loans | Up to $15M | Below-Market Rates