Interested in an SBA Loan?
$1,000 to $25 Million
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Rates Start at 5%
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Monthly Payments
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Short and Long-Term Loans
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Flexible Underwriting
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Most Businesses Eligible
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Sole Proprietors are OK
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Unrestricted Working Capital
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Start-Up Financing Available
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No or Low Collateral
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High LTV Financing
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Nationwide + Rural Locations
What an SBA loan is
The U.S. Small Business Administration doesn’t lend directly — it guarantees a portion of loans made by partner lenders, which lowers lender risk and unlocks longer terms, smaller down payments, and more flexible underwriting than conventional business debt. For owner-operators and small-business real estate, that guarantee is what makes a 10–25 year payback and high loan-to-value possible.
SBA 7(a) vs. SBA 504
The two programs solve different problems:
- SBA 7(a) — the flexible workhorse. Up to $5 million for working capital, business acquisition, partner buyouts, equipment, and owner-occupied real estate. Terms reach 25 years on real estate and 10 years for most other uses.
- SBA 504 — purpose-built for fixed assets: owner-occupied commercial real estate and large equipment. It pairs a bank loan with a CDC debenture, often at a long-term fixed rate and as little as 10% down.
A practical rule: choose 504 when you’re buying or building a property your business will occupy and want a fixed rate; choose 7(a) when you need flexibility across working capital, acquisition, and real estate in one facility.
Eligibility basics
- A for-profit U.S. business operating within SBA size standards
- Owner-occupancy of 51%+ for existing commercial real estate (60% for new construction)
- Reasonable owner equity, demonstrated repayment ability, and no recent federal debt default
- Sole proprietors, partnerships, LLCs, and corporations all qualify
SBA vs. investor financing — when each applies
| Use case | SBA fit | Investor product |
|---|---|---|
| Buy office building your business occupies | SBA 504 or 7(a) | N/A — owner-occupied |
| Acquire rental duplex for cash flow | No — investment property | DSCR at 5.75%–10.5% |
| Fix-and-flip distressed SFR | No | Hard money at 8.99%–13.5% |
| BRRRR — buy, rehab, rent, refi | No | Hard money → DSCR refi |
| Equipment for operating business | SBA 7(a) or equipment financing | N/A |
Worked example: owner-occupied vs. investment
Owner-occupied (SBA-shaped): A property management company buys a $800K office building they will occupy 60%+. SBA 504 with 10% down ($80K) and 20-year fixed CDC debenture may fit.
Investment (private credit-shaped): An investor buys a $310K duplex to rent both units. SBA does not apply. Hard money at 90% LTC funds acquisition + rehab; after lease-up, DSCR refi at 75% LTV recovers capital for the next acquisition.
Investor paths: DSCR loan for investment property · fix and flip loans · BRRRR strategy guide
SBA application basics
- Confirm for-profit status and SBA size standards for your industry
- Document owner-occupancy intent (51%+ for existing CRE, 60% for new construction)
- Prepare business financials — tax returns, P&L, debt schedule
- Identify an SBA-preferred lender in your market
- Allow 45–90 days for SBA-guaranteed close (vs. 7–10 business days for hard money)
For non-owner-occupied deals, skip SBA and pre-qualify for investor financing instead.
SBA loan types at a glance
| Program | Max amount | Best use | Real estate term |
|---|---|---|---|
| SBA 7(a) | $5 million | Working capital, acquisition, CRE | Up to 25 years |
| SBA 504 | Varies by project | Fixed assets, owner-occupied CRE | 10–25 years fixed |
| SBA Express | $500,000 | Fast-track working capital | Shorter terms |
SBA does not replace investor capital stacks. Sponsors running fix-and-flip, BRRRR, or rental portfolios should model deals on the fix and flip calculator and DSCR calculator using hard money and DSCR parameters.
Related: equipment financing for business assets · commercial real estate financing for investor CRE · owner-occupied commercial loans for business owners buying their building
Where SBA fits — and where it doesn’t
SBA is ideal for owner-occupied commercial real estate and operating-business needs. Business owners buying a building may use owner-occupied commercial bridge financing first, then SBA 504 or 7(a) permanent debt. SBA is not designed for non-owner-occupied investment property. If your project is a rental, flip, or pure investment hold, an asset-based hard money or DSCR program is the right tool. Tell us about the deal and we’ll point you to the program that actually fits.
SBA for investors — owner-occupied vs. pure investment
SBA 7(a) and 504 require owner-occupancy on real estate — typically 51%+ for 504 (SBA 504 program).
| Use case | SBA fit | Investor alternative |
|---|---|---|
| Buy warehouse for your business | Yes | Owner-occupied commercial |
| Buy strip center as passive investor | No | Bridge 8.99%–13.5% |
| Flip SFR | No | Hard money 8.99%–13.5% |
| Hold rental | No | DSCR 5.75%–10.5% |
Bridge now, SBA later on your own occupancy: blog — bridge to SBA · 51% rule.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon receipt of appraisal payment and satisfaction of borrower conditions. Closing times may be delayed due to appraiser property access. All loans are subject to full underwriting for loan approvals. Residential investment products are non-owner-occupied only. Select commercial bridge programs fund owner-occupied acquisition — see owner-occupied commercial loans.
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Jaken Finance Group, 2300 Barrington Road, Suite 400, Hoffman Estates, IL 60196