The U.S. Small Business Administration doesn’t lend money directly. It guarantees a portion of loans made by partner lenders, which lowers their risk and unlocks longer terms, smaller down payments, and more flexible underwriting than conventional business debt. That guarantee is what makes a 10–25 year payback and as little as 10% down possible for small-business owners and owner-operators.
Jaken Finance Group helps you get matched to the right SBA program — and when a deal can’t wait the 45–90+ days an SBA file often takes, we can bridge it now and let the SBA loan take out the bridge later. Request commercial financing to start, or call (833) 264-7776.
SBA programs at a glance
| Program | Max amount | Rate (Q3 2026) | Term | Down | Best for |
|---|---|---|---|---|---|
| SBA 7(a) | $5M | Prime + 3.0–6.5% (≈9.75–13.25%) | ≤25 yr RE / 10 yr other | ~10% | Flexible: acquisition, working capital, equipment, owner-occupied CRE |
| SBA 504 | SBA portion ≤$5.5M (projects to ~$30M) | Long-term fixed (CDC debenture) | ≤25 yr RE | ~10% | Owner-occupied CRE & major fixed assets |
| SBA Express | $500K | Prime + higher markup | Varies | Varies | Faster turnaround; revolving lines |
| SBA Microloan | $50K (avg about $13K) | ≈8–13% | ≤7 yr | Varies | Startups, small working-capital needs |
| SBA CAPLines | Shares $5M 7(a) ceiling | 7(a)-style | Revolving | Varies | Working capital & contract lines |
| SBA Export | Up to $5M | 7(a)-style | Varies | Varies | Exporters’ working capital & growth |
Rates float with the prime rate (about 6.75% in Q3 2026); confirm current pricing at application. The two workhorses are 7(a) (the flexible option across working capital, acquisition, and real estate) and 504 (purpose-built for owner-occupied real estate and equipment at a long-term fixed rate).
What SBA loans can fund
SBA programs finance far more than real estate. Explore the use cases:
- Owner-occupied commercial real estate — buy the building your business operates from
- Ground-up commercial construction — build owner-occupied space
- Business acquisition & partner buyouts — buy a business or a partner’s share
- Equipment & machinery — finance long-life fixed assets
- Working capital & inventory — fund operations and growth
- Franchise financing — open or expand an approved franchise
- Startup financing — launch with 7(a) or a microloan
- Business debt refinancing — restructure higher-cost debt
SBA financing by industry
SBA lends heavily on special-use and owner-operated businesses. Dedicated guides for the most common industries:
- SBA gas station & C-store loans — environmental and fuel-volume underwriting
- SBA car wash loans — express tunnels, equipment, membership revenue
- SBA hotel & motel loans — RevPAR, flags, and the PIP
- SBA self-storage loans — occupancy and lease-up
- SBA restaurant loans — acquisition, franchise, and buildout
- SBA auto repair shop loans — equipment and environmental
- SBA medical & dental practice loans — practice acquisition and buy-ins
- SBA assisted living facility loans — licensing and census
SBA eligibility in 2026
SBA financing is broadly accessible but rule-bound. Typical requirements:
- A for-profit U.S. small business meeting SBA size standards
- Roughly 680+ FICO for standard 7(a) (650+ for Express; some microloans accept 575+)
- Usually two or more years in business — though startups qualify on select programs
- 51%+ owner-occupancy (60%+ for new construction) for commercial real estate
- Debt service coverage around 1.15x on most files
New for 2026: as of March 1, 2026, 100% of a business’s direct and indirect owners must be U.S. citizens or U.S. nationals residing in the United States. This is a significant recent change — confirm ownership eligibility early in the process.
The SBA process — and when speed matters
An SBA file moves through lender underwriting, SBA review, and closing — commonly 45 to 90+ days. That timeline is fine when you’re refinancing or planning ahead, but it loses deals in competitive markets. This is where Jaken Finance Group’s model fits:
- Bridge now, SBA later. We fund the acquisition on a fast bridge loan for a commercial building — closing in days — and the SBA loan refinances it once the paperwork clears.
- The deal SBA won’t do. Because SBA requires majority owner-occupancy, non-owner-occupied investors turn to hard money, bridge, or DSCR — see can real estate investors use SBA loans?
SBA vs the alternatives
Not sure SBA is the right tool? Compare:
- SBA $10 million combined 7(a) and 504 limit
- SBA SOP 50 10 8.1 October 2026 changes
- SBA 504 vs 7(a) for owner-occupied commercial real estate
- Commercial bridge loan vs SBA loan
- SBA vs conventional vs bridge for owner-occupied CRE
- The SBA 51% occupancy rule explained
- SBA vs unsecured term loans — speed and size when 7(a) is the wrong clock
- SBA alternative financing — unsecured, bridge, equipment, or wait
- Why SBA loans get denied and SBA credit score and time-in-business rules
If a lender already said no on a $50,000–$500,000 operating-company need, SBA loan denied explains how an unsecured installment can fund in 3–10 business days on this site. Building purchases still go through commercial real estate financing.
How a 504 project is usually split
The SBA lender guide describes a typical 504 project in three pieces:
- A private-sector loan in first position, covering up to 50% of project cost.
- A CDC loan in second position, covering up to 40%, backed by a debenture that SBA guarantees in full.
- Borrower equity of at least 10% of project cost.
The 504 program page headline says long-term fixed-rate financing of up to $5 million. The program section on that page says the maximum 504 loan is $5.5 million. The lender comparison lists CDC/504 amounts from $25,000 to $5.5 million. Use the figure from the sentence you are reading. Do not add the $5 million 7(a) maximum to the 504 maximum and call the total one loan cap.
The 504 page offers 10-, 20-, and 25-year maturities. The lender comparison narrows the common split to 25 years for real estate and 10 years for equipment. Fees total approximately 3% of the debt, and that amount may be financed in the loan.
Uses a 504 loan will not cover
A 504 loan cannot be used for working capital or inventory. It cannot be used for speculation or investment in rental real estate. Both limits are on the 504 page. A flip, a passive rental portfolio, or a payroll gap belongs in another product.
Owner-operators still use 504 for the building the business occupies. Investors who will not occupy the property look at hard money or DSCR loans. At Jaken Finance Group, fix-and-flip and bridge loans are 8.99%–13.5% interest-only and close in 7–10 business days on a complete file. DSCR rental loans are 5.75%–10.5% and close in about 14 business days.
Microloan figures from the program page
The microloan page says loans go up to $50,000 and that the average microloan is about $13,000. The maximum term is seven years. The lender comparison still says maturity is no more than six years. Rates generally fall between 8% and 13%, set by the nonprofit intermediary. Working capital, inventory, supplies, and equipment are allowed. Paying off existing debt is not. Buying real estate is not.
That is why the table above now shows an average of about $13,000 rather than an older round number. Term and rate bands on the table match this program page.
Bank prime on October 2, 2026
The bank prime loan rate was 7.00% on October 2, 2026. The observation on September 16, 2026 was 6.75%. The observation on September 17, 2026 was 7.00%. On October 2, 2025, prime was 7.25%.
The rate column in the program table is labeled Q3 2026, when prime was 6.75% for most of the quarter. A variable note dated after September 17, 2026 starts from the higher print. Ask which prime date the lender locked.
The 7(a) page still caps a 7(a) loan at $5 million. Eligible uses there include working capital, real estate, equipment, and a change of ownership. The borrower must operate for profit in the United States, meet SBA size standards, and show an ability to repay.
Illustration: 504 dollars on a $2 million plant
Example only. Not a quote.
A shop buys a building and long-lived equipment for $2,000,000. Using the 50/40/10 split:
| Piece | Share | Dollars |
|---|---|---|
| Bank first mortgage | 50% | $1,000,000 |
| CDC / 504 second lien | 40% | $800,000 |
| Borrower equity | 10% | $200,000 |
The 504 piece is $800,000. That amount is under the $5 million headline and under the $5.5 million program maximum. Opening inventory is not part of this budget. The 504 page keeps inventory and working capital out of the loan. Fund stock with a 7(a) working-capital loan or with cash.
Equity in this illustration is the 10% floor from the lender guide. A startup or a special-use property can be asked for more. The CDC decides that file by file.
If the purchase contract dies in two weeks, 504 timing will miss the date. A commercial bridge from Jaken Finance Group can close in 7–10 business days, and the SBA loan can repay it later. See bridge now, SBA later. Call (833) 264-7776 with the occupancy plan and the contract deadline.
What a 504 file needs before the CDC will engage
A pretty term sheet is not a 504 approval. CDCs and the first-lien bank usually want the same core package.
- A purchase contract or a construction budget with the address and the price.
- A statement of who will occupy the building, and what share of the square footage that business will use.
- Two years of business tax returns when the company has them.
- A debt schedule, including any seller note you hope to keep.
- An environmental screen on the real estate. Older industrial sites stall here.
- A sources-and-uses page that keeps inventory and payroll out of the 504 column.
The occupancy share matters because SBA real estate loans are for businesses that occupy the property. A building you plan to lease to unrelated tenants is the rental-investment ban on the 504 page, not a paperwork miss you can fix at the closing table.
Count the equity in cash the borrower will actually wire. The 10% floor in the illustration above is $200,000 on a $2,000,000 project. Seller concessions that never become cash do not fill that box. If the wire is short, resize the project before you order the appraisal.
Get matched with Jaken Finance Group
Jaken Finance Group helps small-business owners and real estate investors access the right SBA program — and pairs it with the fast commercial and bridge financing SBA timelines can’t match. Whether you need a 504 for the building you operate from, a 7(a) for an acquisition, or a bridge to close now and refinance into SBA later, start with one request.
Request commercial financing or call (833) 264-7776 — the more detail you provide, the faster we can return an answer and a letter of intent.
Authoritative program details: SBA — loan programs and SBA 7(a) terms & eligibility. Rates and rules change; verify current terms at application. Jaken Finance Group facilitates SBA financing with lending partners and provides its own commercial and bridge loan programs.