SBA 504 Loans

SBA 504 Loan Rates - Rates updated February 2nd, 2025

Loan Product	Starting Rates	LTV
10, 20, or 25 Year Fixed Rates	7.50%	Up tp 90%	Get Free Quote

 

SBA Loans Overview

SBA (Small Business Administration) loans are some of the best lending options for business owners looking to finance their owner-occupied properties. The SBA is mission driven to provide financing to small business owners. They help small businesses get the funding they need by setting guidelines for loans and reducing lender risk. By partnering with many lenders across the country and guaranteeing loans, the SBA helps to increase financing options for small businesses nationwide. Select Commercial is uniquely qualified to help find the best SBA loan for you and your business.

About the SBA 7(a) Loan

The SBA 7(a) Loan is the primary business loan program offered by the SBA. The 7(a) Loan Program offers loan guarantees to nationwide lenders. With these guarantees in hand, lenders (usually banks and credit unions) are then able to provide low risk financing to small businesses. This allows lenders to offer competitive interest rates at longer terms and lower down payments than conventional loans. The SBA sets general guidelines for the 7(a) loan program that lenders must adhere to. These guidelines dictate the maximum loan amounts, term lengths and interest rates. However, specific terms of an SBA 7(a) loan vary from lender to lender. Lenders vary on many terms including loan to value and interest rates. Most lenders will finance up to 90% of the value of the property and on some property types will go up to 100% loan to value. Some lenders will offer fixed rate loans while others offer adjustable rate options.

SBA 7(a) loans can be used for a variety of different purposes including:

• Purchasing, refinancing or rehabbing owner occupied real estate
• Working capital for businesses
• Refinancing business debt
• Purchasing machinery, equipment, furniture, fixture and supplies
• Changes of ownership (buying out a partner)

The SBA 7(a) loan can be used to finance the following owner-occupied property types:

• Office
• Retail
• Self-Storage
• Warehouse/ Industrial
• Medical
• Special use properties such as hotels, motels, gas stations, marinas, restaurants and bowling alleys

One important factor to note about the SBA 7(a) loan program is that it has a maximum loan amount of $5 million. There are further eligibility factors based on what the business does to receive its income, how much money it makes, its credit history, and where the business operates.

Here are some of the requirements to be eligible for an SBA 7(a) loan:

• Must be an operating business located in the U.S
• The business must operate for profit
• Must qualify as a small business under SBA guidelines. There are various criteria that must be met to be considered a small business. These criteria take into account the number of employees, annual receipts, industry-specific standards, location, ownership structure and national dominance in an industry.
• Must not be a type of ineligible business
• The business must have substantial credit and the ability to repay the loan
• The business must not be able to obtain the desired credit on reasonable terms with non-government lending institutions

The maximum term lengths for SBA 7(a) loans typically depend on the use of loan proceeds:

• For real estate purchases and refinances, the maximum term is 25 years
• For equipment loans and working capital, the maximum term is 10 years

Another important factor to consider when looking into an SBA 7(a) loan is the amount it costs to close the loan. The interest rate is only one component of the overall cost of a 7(a) loan. The 7(a) loan has a guarantee fee which can range from 0.25% to 3.5% of the loan amount. As of right now there are no guarantee fees on 7(a) loans of $1 million or less and loans under $2 million have a discounted fee.

Why Choose an SBA 7(a) Loan with Select Commercial?

• High Loan Amounts – Borrow up to $5 million for business expansion, equipment, or property purchases
• Long Repayment Terms – Up to 10 years for working capital and 25 years for real estate
• Lower Down Payments – Typically 10% down, making financing more accessible
• Competitive Interest Rates – Rates are usually based on the WSJ Prime plus a fixed percentage, ensuring affordability. We offer fixed rate loans as well.
• Flexible Use of Funds – Cover real estate, business acquisition, working capital, or refinancing

Get Your SBA 7(a) Loan with Select Commercial Today

If you're looking for a flexible, affordable way to finance your business, the SBA 7(a) loan is a great option. Whether you need funds for expansion, real estate, equipment, or working capital, Select Commercial can help you secure financing with low rates and long terms.

📩 Get a Free Quote Now and speak with an SBA loan expert at Select Commercial to start your application today.