SBA loans
SBA loans: start with what you are buying.
Two programs cover most of what owners finance. Which one fits depends on the asset, the cash flow and the structure, not on the program's name.
Tell us your plan Run your numbers
- We don't pull your credit to start
- Not a lender, not the SBA
- You decide what happens next
Which program for which purchase
| You are buying… | Usually points to | Start here |
|---|---|---|
| An existing business, or a partner's share | SBA 7(a) | Business acquisition financing |
| The building your business operates from | SBA 504, SBA 7(a) or conventional | Owner-occupied real estate |
| A business and its building together | 7(a), or 7(a) plus a separate real estate loan | 7(a) vs. 504 |
| Major equipment or a build-out | 7(a), 504 or equipment financing | Expansion financing |
| Working capital for growth | 7(a) or a line of credit | Expansion financing |
The two programs at a glance
SBA 7(a)
One lender, with an SBA guaranty. Flexible uses: acquisitions, equipment, real estate, working capital. Sized up to $5 million.
SBA 504
A bank first loan plus a Certified Development Company second loan. Built for owner-occupied real estate and heavy equipment, with a long fixed rate on the larger slice.
See the numbers
How many 7(a) and 504 loans were approved where you are, how large they were, and which lenders and CDCs made the most of them: SBA loan data by state, Pennsylvania county and industry, built from the SBA's public loan-level records.
Before you apply anywhere
- Know whether the cash flow covers it.For the business and for your household. See how lenders calculate cash flow.
- Know your structure.Sources and uses, your cash, any seller note. See equity injection and seller notes.
- Gather your documents once.See documents you will need.
- See what a finished package looks like.The sample package shows what a lender can work from.
Not an SBA fit? Quick capital, merchant-cash-advance style funding, or short-term cash pressure are usually better served by your local Small Business Development Center or a nonprofit lender, and we will point you there.
Common questions
What is the difference between 7(a) and 504?
7(a) is the flexible, general-purpose program. 504 is built for owner-occupied real estate and major equipment, with a bank loan plus a Certified Development Company loan. The asset you are buying usually points to the answer. See the full comparison.
Does the SBA lend the money?
No. A bank or other approved lender makes the loan and the SBA guarantees part of it to the lender. You apply through a lender, and the lender decides.
Is SBA financing always the best choice?
No. Conventional financing, seller financing or equipment financing can be simpler or cheaper in some cases. SBA financing earns its place when it makes the structure work, for example a longer term or a lower cash requirement.
How do I know if my deal is a fit?
Start with the numbers: whether the cash flow covers the payments, for the business and for your household. The calculator shows both, and the sample package shows what a finished summary looks like.
Go deeper
Tell us what you are trying to do
Describe it in a few sentences. No documents needed to start, we do not pull your credit, and there is no obligation.
General information, not legal, tax or financial advice. Precise SBA is not a lender and is not affiliated with the U.S. Small Business Administration. All financing is subject to lender underwriting and SBA program rules. Examples use hypothetical numbers. We never charge you. If a loan closes, the lender may pay us a referral fee, disclosed on SBA Form 159 (how we get paid).