Loan Programs
Financing Owner-Occupied Commercial Real Estate
Most business owners buying their own building come down to one program: the SBA 7(a). Here is the program we focus on, plus the two alternatives worth understanding before you decide.
Our primary focus
SBA 7(a) Loans
The most common way business owners finance the building they operate from. As little as 10% down (sometimes zero for an established business), fully amortizing terms up to 25 years, and no balloon payment. This is the program we cover in the most depth.
The fixed-rate alternative
SBA 504 Loans
A three-party structure with a Certified Development Company that locks a long-term fixed rate on part of the project. Worth understanding when you are weighing 7(a) against a fixed-rate option, and the 7(a) and 504 limits are now separate, so the two can be paired toward roughly $10M of total SBA financing.
For rural locations
USDA B&I Loans
Government-guaranteed financing for businesses outside major metro areas. Higher loan limits and long terms, if the property sits in a USDA-eligible rural area.
Compare the Programs
A side-by-side look at how the three programs stack up.
| Feature | SBA 7(a) | SBA 504 | USDA B&I |
|---|---|---|---|
| Max Loan Amount | $5 million | $5 million CDC debenture | $25 million |
| Down Payment | 0-10% (varies by scenario) | 10-20% | 10-20% |
| Interest Rate | Variable (Prime + spread) | Fixed (CDC portion) | Varies |
| Term | Up to 25 years | 20 or 25 years | Up to 30 years (RE) |
| Guarantee | 75-85% SBA guarantee | 40% CDC/SBA debenture | 60-80% USDA guarantee |
| Best For | Owner-occupied real estate, plus equipment and working capital | Large fixed-asset projects; lowest fixed rates | Rural locations; larger projects |
Not Sure Which Program Fits?
Send over your scenario and get honest, no-obligation feedback from an experienced SBA lender.