Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Owner-Occupied Program
SBA Loans
SBA (Small Business Administration) loans are some of the best options for business owners financing owner-occupied property. The SBA sets loan guidelines and guarantees a portion of each loan, reducing lender risk and expanding financing nationwide. We arrange SBA 504 and 7(a) loans with high leverage, up to 90% and in some cases 100%, from $1,500,000. Compare today’s commercial mortgage rates.
Get a Free QuoteSBA Loan Rates & Terms
| Loan Type | Rate* | Max LTV |
|---|---|---|
| SBA 504 (Fixed) | 6.03% | Up to 90% |
| SBA 7(a) (Variable) | 6.75% | Up to 90% |
- Up to 90% LTV, 100% possible for certain professional businesses
- Purchase, refinance or construct owner-occupied property
- Long terms, up to 25 years for real estate
- Low down payments preserve working capital
- Special-use property welcome (hotels, restaurants, gas stations and more)
- Loans from $1,500,000
Rates are indicative and update with the market. SBA underwriting determines final terms.
SBA 504 vs SBA 7(a)
We arrange both SBA programs and help you choose the right one:
| Program | Use | Max term | Best for |
|---|---|---|---|
| SBA 504 | Owner-occupied real estate and long-term equipment | Up to 25 years | Lowest long-term fixed, low down payment |
| SBA 7(a) | Real estate, equipment, working capital, acquisition | 25 yrs (real estate) | Most flexible, single loan up to $5M |
SBA 504 Loans
The SBA 504 loan program provides long-term, fixed-rate financing for businesses acquiring major fixed assets such as owner-occupied commercial real estate and heavy equipment. It is structured as a partnership between the borrower, a private lender and a Certified Development Company (CDC) debenture, which makes it one of the most affordable options for real estate or equipment purchases, with low down payments.
An SBA 504 loan can be used to:
- Purchase owner-occupied commercial real estate such as offices, warehouses and manufacturing facilities
- Renovate or upgrade existing buildings, including roofing, plumbing, electrical and energy-efficiency improvements
- Acquire long-term machinery or equipment with a useful life of at least 10 years
- Refinance existing debt used to purchase fixed assets, subject to SBA guidelines
- Finance special-use property such as hotels, motels, marinas and restaurants
SBA 7(a) Loans
The SBA 7(a) loan is the SBA’s primary and most flexible business loan program. The SBA guarantees a portion of loans made by nationwide lenders, usually banks and credit unions, which lets them provide lower-risk financing to small businesses. A 7(a) loan can be used for:
- Purchasing, refinancing or rehabbing owner-occupied real estate
- Machinery, equipment, furniture, fixtures and supplies
- Working capital and business acquisition
- Special-use property such as hotels, motels, gas stations, marinas, restaurants and bowling alleys
SBA 7(a) loans have a maximum loan amount of $5 million, and the maximum term for real estate purchases and refinances is 25 years.
SBA Eligibility
To qualify for SBA financing, a business generally must:
- Operate as a for-profit company within the United States or its territories
- Qualify as a small business under SBA size standards (employees, revenue, industry, ownership)
- Occupy the property, since SBA loans finance owner-occupied real estate
- Have qualified management experience and a feasible business plan
- Demonstrate creditworthiness and the ability to repay
- Be unable to obtain the desired credit on reasonable terms from non-government lenders
Get Expert Guidance on Your SBA Loan
The SBA is mission driven to help small businesses, and Select Commercial is uniquely qualified to find the best SBA loan for you and your business. With more than 30 years of experience, we structure 504 and 7(a) financing with high leverage, up to 90% and in some cases 100%, and there are no upfront application or processing fees. See our business loans pillar for owner-occupied guidance.
What Our Clients Say
“I needed an SBA loan and found Select Commercial. It was obvious Stephen knew everything about commercial loans. If you are starting a small business, definitely give them a call.”
Larry S. · Washington, DC“I needed a business mortgage for my small business. Stephen helped me the entire way and was always accessible. I highly recommend them.”
Jonathan M. · Seattle, WA“I am a veterinarian who purchased an existing practice. I was surprised to find a company that offered 100% financing at a good rate, with great terms and rates for medical office financing.”
Carol K. · Chicago, IL“Select Commercial offered 100% financing for my medical practice when my bank would have required 20% down. They delivered something my bank could not, and handled everything professionally.”
John C. · Boston, MAGet Your SBA Loan Quote
No cost, no obligation. Written answers within 48 hours on SBA loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up