SBA Loan Programs Explained: 7(a) vs. 504 — Which One Fits Your Need?

SBA loan programs can be one of the most powerful — and most misunderstood — financing tools available to small business owners and commercial property buyers. In this video, I break down the major SBA lending programs, how they differ, and which situations each one fits best. What we cover: SBA 7(a) loans — the flexible workhorse: eligible uses, loan limits, terms, and down payment requirements SBA 504 loans — long-term, fixed-rate financing for owner-occupied commercial real estate and major equipment How the two programs differ on structure, rates, fees, and qualifying criteria Owner-occupancy requirements and what they mean for buying a building for your business Common mistakes borrowers make when choosing between programs Questions to ask your lender before you apply Whether you're acquiring a property for your business, expanding operations, or simply weighing your financing options, understanding these programs can save you significant money over the life of the loan. 📞 Have questions about commercial real estate or investment property? Let's talk. Scott Cook, CPM Multi-Family Broker & Investment Property Manager Cook Equity Partners, LLC 619-843-0143 [email protected] www.CookEquityPartners.com CA Lic #01203947 / #02217127 This video is for educational purposes only and is not financial, lending, or legal advice. Consult an SBA-approved lender for guidance on your specific situation. #SBALoans #SBA7a #SBA504 #CommercialRealEstate #SmallBusinessFinancing #RealEstateInvesting #SanDiegoRealEstate