SBA 7(a) vs. SBA 504 Loans: Key Differences and Parameters
SBA 7(a) vs. SBA 504 Loans: Key Differences and Parameters
When small businesses look to finance growth, working capital, or major purchases, two of the most popular options are the SBA 7(a) Loan Program and the SBA 504 Loan Program. Both are backed by the U.S. Small Business Administration (SBA), but they serve different purposes and have unique structures. Understanding these differences can help business owners choose the right financing tool for their needs.
At First State Bank Nebraska, we are proud to be a Preferred Lender with the SBA, which means faster decisions, streamlined processing, and expert guidance every step of the way.
SBA 7(a) Loan Program
Purpose
The SBA 7(a) loan is the most flexible SBA program, designed to cover a wide range of business needs.
Eligible Uses
Working capital
Business acquisition or partner buyout
Refinancing certain types of debt
Purchase of equipment, inventory, or supplies
Real estate purchase (owner-occupied)
Leasehold
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