Category: SBA Loans


The Small Business Administration offers business loans. The most common loans refer to Sections 504 and 7(a) of the Small Business Act. Are you looking for a small business loan? If you want to purchase commercial real estate or machinery/heavy equipment, the 504 loan is the best choice. What if you are purchasing a business or receiving working capital? The 7(a) loan is preferred. 504 loans are used for fixed assets including the purchase of existing buildings, land and land improvements, and construction of new facilities. The benefits for small business is that 504 loans allow 90% financing, longer loan...

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Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC. Most people talk about SBA loans as if there’s only one, and that typically being the 7(a). The other equally useful in the right situation is the 504. This doesn’t get much exposure, probably because it’s more complex. I recently had the occasion to review a 504 with a borrower (my client) and a bank BDO. A brief overview of the loan is offered for orientation: The 504 is really two loans packaged as one. (Now you begin to see why it can be confusing.)...

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The SBA (Small Business Administration) guidelines for 7(a) loans have been updated – they do so annually – and are now in the market for these loans. There are a couple major changes worth noting for prospective borrowers. (They’re all worth noting, but the drill-down details are beyond the scope of this discussion.) 1. Minimum down payment has been reduced to 10% of the project amount. The project amount includes not only the business acquisition, but also inventory, working capital and closing costs. This level puts it on equal footing with their 504 loan. There are other features between the...

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