SBA Loan Overviews

The SBA 7a Program allows for financing of all types of business needs from purchasing real estate, fixed assets, working capital and business acquisitions.  

As of 2/24/2023, SBA 7a Rate for qualifying properties and borrowers can be 7.75% Fixed Rate for 24 Months – 25 Year Amortization – No SBA Loan Guarantee Fee for the first $500,000 in Loan Amount

The SBA 7(a) loan program highlights are:

  • Up to 85% Loan to Value (LTV) on hospitality properties
  • Adjustable rates 1.5% to 2.25% over WSJ Wall Street Journal Prime
  • 5 Year Fixed Rate may be available depending on certain risk factors i.e. Credit, Debt Service Coverage Ratio and other underwriting guidelines
  • 25 Year Amortization
  • Fully Amortized Loans with NO  Balloons
  • Loans up to $5 million
  • Closings in as little as 45 to 90 days
  • Loans may be assumed, subject to approval
  • SBA Loan Guarantee Fee 3% of Loan Amount
  • Second Mortgages Permitted

Closing Cost Categories:

  • SBA Loan Guarantee Fee 3% of the “Loan Amount”
  • Bank Attorney Fee 
  • Environmental 
  • SBA Packaging Fee 
  • Appraisal
  • Title Insurance 

SBA 504

The SBA 504 Program provides a method to finance real estate expansion projects through long-term, fixed-rate financing.   The 504 is different from the 7(a) in that it is offered by the SBA in partnership with a participating lender (bank or non-bank).” The 504 loan program consists of two loans. The first loan and lien position is offered by an authorized lending institution and the second loan or second lien position is offered by the US SBA via the efforts of a certified development company (CDC).

  • Land and building acquisition
  • Site improvements
  • Building improvements
  • Professional fees, including architect, appraisal, environmental
  • Other costs, including title insurance, survey, points and interest on interim loan
  • Machinery and equipment acquisition

The main advantages of the SBA 504 program are as follows:

  • Small equity injection, as little as 15% toward the total eligible project
  • Long-term financing is available, up to 25 years on loan 1 and up to 20 years on loan 2
  • Very favorable, fully amortizing fixed-rate pricing on loan 2 at market
  • Most closing costs are eligible for project financing
  • SBA 504 loans may be assumed

The SBA 504 loan program highlights are:

  • Up to 85% financing on hospitality properties
  • Fully amortized loans with no balloons
  • 5 and 10 Year Fixed Rate
  • Terms to 25 years
  • Loans up to $15 million

Download Loan Application and Related Documents