SBA 7(a) vs 504 vs ExpressComplete Comparison Guide
Find the perfect SBA loan for your business. Compare rates, terms, uses, and requirements for all three major SBA loan programs.
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SBA Loan Comparison at a Glance
Key differences between SBA 7(a), 504, and Express loans
| Feature | SBA 7(a) | SBA 504 | SBA Express |
|---|---|---|---|
| Maximum Loan Amount | $5,000,000 | $5,500,000 (combined) | $500,000 |
| Typical Interest Rate | Prime + 1.75% to 6.75% | 5.5% to 7.5% (fixed) | Prime + 2.25% to 6.75% |
| Maximum Term | 25 years (real estate) | 20-25 years | 25 years (real estate) |
| Down Payment | 10-15% typical | 10% minimum | 10-15% typical |
| Processing Time | 60-90 days | 90-120 days | 36 hours decision |
| SBA Guarantee | 75-85% | 40% (SBA portion) | 50% |
Which SBA Loan is Right for You?
Detailed breakdown of when to use each SBA loan type
SBA 7(a)
Most Versatile Option
Best Uses:
- Working capital and cash flow
- Business acquisitions
- Equipment purchases
- Real estate (owner-occupied)
- Refinancing existing debt
- Inventory and supplies
Pros:
- Most flexible use of funds
- Highest loan amounts available
- Longer repayment terms
- Lower down payments
Cons:
- Longer processing time
- More documentation required
- Variable interest rates
SBA 504
Real Estate & Equipment
Best Uses:
- Commercial real estate purchase
- Construction of new facilities
- Major equipment purchases
- Building improvements/renovations
- Land acquisition for business use
Pros:
- Fixed interest rates
- Only 10% down payment required
- Long-term financing (20-25 years)
- Lower overall cost of capital
Cons:
- Limited to real estate/equipment
- Longest processing time
- Complex two-loan structure
- Owner-occupancy requirements
SBA Express
Speed & Convenience
Best Uses:
- Quick working capital needs
- Urgent equipment purchases
- Seasonal cash flow gaps
- Small real estate transactions
- Emergency business expenses
Pros:
- 36-hour SBA decision
- Streamlined application process
- Less documentation required
- Same uses as SBA 7(a)
Cons:
- Lower maximum loan amount
- Higher interest rates
- Lower SBA guarantee (50%)
- May have higher fees
Decision Matrix: Which Loan for Your Situation?
Common business scenarios and recommended SBA loan types
Scenario: Buying commercial real estate for your business
Lowest down payment (10%) and fixed rates for real estate purchases
Scenario: Need working capital quickly
36-hour decision time for urgent cash flow needs
Scenario: Acquiring another business
Most flexible for business acquisitions and highest loan amounts
Scenario: Purchasing equipment over $500K
Express loans capped at $500K; 504 offers fixed rates for equipment
Scenario: Mixed use: equipment, inventory, and working capital
Most flexible use of funds for multiple business needs
Scenario: Refinancing existing business debt
504 and Express have limited refinancing options
Compare Loan Costs Side-by-Side
Use our comparison calculator to see the real cost differences
SBA vs Traditional Loan Comparison
Compare costs, terms, and benefits between SBA-guaranteed loans and conventional business loans.
Loan Comparison Calculator
Complete SBA Loan Comparison Guide 2025
SBA Loan Interest Rate Comparison
Current Rate Environment (2025)
With the Prime Rate at approximately 8.5%, here's how SBA loan rates compare:
SBA 7(a) Rates
SBA 504 Rates
SBA Express Rates
Real Payment Comparisons by Loan Amount
$100,000 Loan Comparison
$500,000 Loan Comparison
$1,000,000 Loan Comparison
Best SBA Loan by Industry
Restaurants & Food Service
Manufacturing
Professional Services
Retail
Healthcare
Technology/Startups
Qualification Requirements Comparison
| Requirement | SBA 7(a) | SBA 504 | SBA Express |
|---|---|---|---|
| Minimum Credit Score | 680+ preferred, 620+ possible | 680+ preferred, 640+ possible | 680+ preferred, 620+ possible |
| Time in Business | 2+ years preferred | 2+ years required | 2+ years preferred |
| Down Payment | 10-15% typical | 10% minimum | 10-15% typical |
| Cash Flow (DSCR) | 1.25x minimum | 1.25x minimum | 1.15x minimum |
| Collateral Required | Yes, flexible | Real estate secures loan | Yes, flexible |
| Owner Occupancy | Not required | 51% required | Not required |
| Documentation | Comprehensive | Most extensive | Streamlined |
Total Cost of Ownership Analysis
$500,000 Loan - 15 Year Total Cost Comparison
SBA 7(a) Loan
SBA 504 Loan ⭐
SBA Express
SBA Loan Comparison FAQ
Which SBA loan has the lowest interest rates?
SBA 504 loans typically have the lowest rates because they offer fixed-rate financing. However, the overall cost depends on your specific situation, loan amount, and term.
Can I get multiple SBA loans at the same time?
Yes, but there are limits. You can have multiple SBA loans as long as you stay within the overall SBA exposure limits and meet eligibility requirements for each loan.
Which SBA loan is easiest to qualify for?
SBA Express loans often have more flexible qualification requirements due to the streamlined process, but qualification ultimately depends on your business's financial strength and credit profile.
How do I choose between SBA 7(a) and 504 for real estate?
Choose SBA 504 if you want fixed rates and only need 10% down. Choose SBA 7(a) if you need more flexibility or the property doesn't meet 504 owner-occupancy requirements.
Are SBA Express loans really approved in 36 hours?
The SBA provides a decision within 36 hours, but the lender still needs time for underwriting. Total funding time is typically 2-4 weeks, much faster than other SBA loans.
Ready to Calculate Your SBA Loan Payments?
Use our free calculators to estimate payments for each SBA loan type