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SBA 7(a) vs SBA 504

SBA 7(a) vs. SBA 504

Both are government-backed and low-rate, but 7(a) is the flexible all-purpose loan while 504 is built specifically for major fixed assets.

Use of funds
Almost anything — working capital, acquisition, real estate
Major fixed assets: real estate, heavy equipment
Max amount
Up to $5M
Up to $5.5M (CDC portion)
Rate
Variable or fixed, caps near prime + 2.75%
Below-market fixed on the CDC portion
Term
Up to 10 yrs (25 on real estate)
10, 20, or 25 years
Structure
One loan, one lender
Bank + CDC, often ~10% down
Best for
Flexible or mixed needs
Buying or building owner-occupied property
THE VERDICT

Which should you choose?

Choose SBA 7(a) for flexibility — working capital, a business acquisition, partner buyout, or a mix of uses in one loan.

Choose SBA 504 when you are buying or building owner-occupied real estate or large equipment and want the lowest fixed rate and longest amortization available.

One application reaches approved lenders for both, so you do not have to guess which structure fits — you compare.

05 · FREQUENTLY ASKED

6 questions
most businesses ask.

SBA 7(a) is more flexible and common, so it fits more situations. SBA 504 is specialized for fixed assets and involves a CDC partner. Both require solid credit and a sound use of funds.

No — 504 is restricted to major fixed assets like real estate and heavy equipment. For working capital, 7(a) is the right SBA product.

Yes. One EQ Funding application routes your file to 50 lenders covering both, so you see sba 7(a) and sba 504 offers side by side and choose the better deal — instead of applying separately and guessing which is more competitive.

No. Comparing offers uses a soft pull that has no effect on your credit score. A hard inquiry only happens once you accept a specific lender — so there is no downside to seeing both before you decide.

Nothing to you. EQ Funding is paid by the lender when your deal closes — never by the borrower. Because lenders compete, the winning offer is often better than what a single source would have made.

Most applicants see first offers within about 24 hours and can fund in as little as 48 hours after accepting. SBA-backed options take longer but carry the lowest rates.

READY · APPLICATION OPEN

Apply once.
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Six questions. Two minutes. No effect on your credit score. Real offers from 50 lenders within 24 hours.

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No effect on credit score
2 minutes total
First offers in 24hr