SBA 7(a) and 504 Programs Explained
The SBA 7(a) and 504 programs give small and mid size businesses access to financing terms that conventional lenders rarely match, 25 year amortizations, down payments as low as 10% (sometimes 5% with the right structure), and rates tied to prime. CapitalAx works with a network of SBA preferred lenders across the country, and we've closed SBA deals with as little as 5% equity injection using standby seller notes. We handle lender matching, deal packaging, and the mountain of SBA paperwork so the process doesn't stall.
Deal Structure at a Glance
Who Is This For?
- Small business owners seeking growth capital
- Entrepreneurs acquiring an existing business
- Business owners purchasing owner occupied commercial property
- Operators refinancing high interest existing debt
- Franchise buyers with approved franchise concepts
Common Use Cases
- Business acquisitions and partner buyouts
- Owner occupied commercial real estate purchases
- Equipment purchases and facility improvements
- Working capital and business expansion
- Debt refinancing and consolidation
Borrower Scenarios
Examples of how this financing can be used.
A restaurant owner purchasing the building they've been leasing for 8 years through SBA 504, locking in a 25 year fixed rate and freeing up cash flow that was going to rent.
A first generation immigrant entrepreneur acquiring a profitable dry cleaning chain with steady seven figure revenue, using SBA 7(a) with 10% down and a standby seller note covering another 5%.
A husband and wife team buying a boutique hotel in a resort town, combining SBA 7(a) financing with an SBA approved franchise flag to secure preferred terms and lower equity requirements.
A veterinary clinic owner expanding into a second location, using SBA 504 to purchase and renovate a 6,000 sq ft commercial building with only 10% out of pocket.
Why Work With CapitalAx
We help borrowers organize sba loans requests and compare lending sources that may fit the transaction.
SBA Lender Matching Across 100+ Preferred Partners
Not every SBA lender approves the same deals. We maintain relationships with over 100 SBA preferred lenders and know which ones favor specific industries, deal sizes, and borrower profiles, so your application goes to a lender predisposed to say yes.
Creative Equity Injection Structuring
We've closed SBA deals with as little as 5% buyer equity using standby seller notes. Gift funds and 401(k) rollovers can also fill the equity injection under SBA rules. If the deal economics work, we find a structure that minimizes your cash outlay while satisfying SBA requirements.
Full Paperwork Management From Application to Closing
SBA deals generate more documentation than any other loan type. We handle lender forms, SBA authorization packages, insurance requirements, and closing coordination so nothing stalls or gets lost between parties.
Tools & Calculators
SBA Loan Calculator
Estimate SBA 7(a) and 504 loan payments from your loan amount, interest rate, and term.
Commercial Real Estate Cap Rate Calculator
Calculate commercial real estate cap rate from NOI and property value to evaluate investment returns.
Commercial Property Value Calculator
Use a commercial property valuation calculator to estimate income based value from NOI and cap rate.
Shopping Center Underwriting Calculator
Estimate tenant income, NOI, value and debt service coverage while keeping leasing costs separate.
Related Loan Programs
Looking for a different financing structure? Browse all loan programs.