SBA Lending
Financing a Wide Range of Business Needs
Financing Solutions for Small Businesses
- SBA 7(a) Loan Program
- SBA 504 Loan Program
The Small Business Administration (SBA) serves as the main resource for government-backed business loans. Because a portion of an SBA loan is guaranteed by the government, these loans allow small business owners to obtain capital with less equity than a conventional loan requires.
- Business Expansion
- Commercial Real Estate
- Construction
- Business Acquisition
- Business Startup
- Working Capital
- Business Debt Refinance
- Equipment Financing
- Full or Partial Owner Buyout
SBA 504 Loan vs. SBA 7(a) Loan
At-a-Glance Comparison
| Feature | SBA 504 Loan Program | SBA 7(a) Loan Program |
|---|---|---|
| Primary Purpose | Fixed-asset financing for owner-occupied commercial real estate and long-life equipment | Flexible financing for working capital, real estate, equipment, and business acquisitions |
| Loan Amounts | SBA portion up to $5.5 million (total project financing can be higher) | Up to $5 million |
| Terms | Up to 25 years for real estate, up to 10 years for equipment | Up to 25 years for real estate, up to 10 years for equipment/working capital |
| Interest Rate | Fixed for the life of the loan | Variable or fixed, typically tied to Prime plus a spread |
| Down Payment | Typically 10% (may be higher for special-use properties or startups) | Typically 10–20% depending on lender and use |
| Best For | Businesses expanding or acquiring property/equipment with stable long-term financing needs | Businesses needing flexible funds for growth, acquisitions, or working capital |
Small Business Loans
Whether your goal is to acquire, construct, or expand commercial real estate for your business, or meet other financial goals, we have the expertise and reliability to deliver.
Detailed Comparison of SBA 504 & SBA 7(a) Loan
| Feature | SBA 504 Loan | SBA 7(a) Loan |
|---|---|---|
| Primary Use | Commercial real estate and equipment | General business purposes |
| Loan Size | $250,000 to $5,000,000 | $250,000 to $5,000,000 |
| Interest Rate |
Fixed rate Fully amortized through loan term Set monthly at funding above current market rate for 5-year and 10-year U.S. Treasury issues |
Variable rate; limited fixed-rate options Fully amortized through loan term Negotiated between borrower and lender, subject to SBA ceiling/floor |
| Eligible Business Size |
Net worth ≤ $15 million Avg. net profit ≤ $5 million (past 2 years) |
Based on industry: Annual sales ≤ $750,000 to $33.5 million (retail/service/agriculture) Employees ≤ 100 to 1,000 (wholesale/manufacturing) |
| Terms & Amortization |
25 years – real estate 20 years – real estate 10 years – equipment No balloon payments |
Up to 25 years – real estate Up to 10 years – equipment/business acquisition 5–7 years – working capital Fully amortized, no balloon payments |
| Loan Structure | 50% bank loan, 40% CDC loan, 10% borrower down payment | Negotiable; minimum 10% down payment |
| Eligible Uses |
Purchase existing building Land acquisition & new construction Expansion/improvement Purchase long-life equipment |
Business expansion/acquisition/startup Real estate purchase/construction Refinance business debt Equipment, working capital, inventory, leasehold improvements |
| Requirements |
51% occupancy – existing building 60% occupancy – new construction Equipment life ≥ 10 years |
51% occupancy – existing building 60% occupancy – new construction Assets must benefit the business directly |
| Collateral |
Project assets financed Personal guaranty ≥ 20% ownership |
Assets financed as collateral Possible personal residence pledge Personal guaranty ≥ 20% ownership |
| Loan Fees |
504 loan fees financed Bank loan fees negotiated SBA min. servicing fee + legal review fee |
Fees financed Vary by loan size Additional 0.25% on portion above $1 million |
Streamlined SBA Loan Process
Government Guaranteed Loans provided through the Small Business Administration (SBA) and the United States Department of Agriculture (USDA) are a time-tested and affordable way to fund the growth of new and established businesses. Working with INSIGNIA Financial Services, you can rest assured your financing is being handled by professionals with a demonstrated track record of working with small business lending, proficiency in underwriting, and a commitment to serving small business owners.
We work closely with every client, carefully reviewing their financing needs to determine the best source and type of financing for their objectives. We patiently guide our clients through the lending process, from the application process to funding of the loan and beyond.
SBA 504 Loan Program
The SBA 504 Loan Program provides growing businesses with long-term, fixed-rate financing for major purchases such as commercial real estate and heavy machinery & equipment. This program is designed for small businesses requiring commercial mortgage financing and is facilitated through Certified Development Companies (CDCs). We work closely with CDCs and the SBA to provide financing with a low minimum equity contribution, allowing for the conservation of working capital.
SBA 7(a) Loan Program
The SBA 7(a) Program provides guaranteed financing for a variety of business purposes. The specific business-related expenses covered include working capital, machinery & equipment, furniture & fixtures, land & buildings (including purchase, renovation and new construction), leasehold improvements, and qualified debt refinancing. The SBA 7(a) Program will also help preserve working capital as a result of low down payment requirements.
Healthcare Property Financing
Our Healthcare finance platform offers permanent, non-recourse, assisted living, memory care and intermediate/ skilled nursing facility loans that are designed to give you more of what you need — lower equity requirements and a flexible lending program that meets your unique financing goals. in addition to SBA guaranteed loans, HUD/FHA and USDA guaranteed loans are available for eligible transactions.
Franchise Financing
We offer the franchise financing that helps entrepreneurs succeed. We are focused on the needs and challenges of both new and existing franchisees and provide fast financing for everything from new stores to business acquisition. While the process of applying for franchise financing can be detailed and somewhat overwhelming, our lending specialists provide the expertise and guidance that will make the entire experience a smooth and efficient one.
Medical Practice Financing
Our lending team consists of specialists who are adept at supporting medical professionals in need of customized medical practice financing solutions. We work closely with you to review your needs - whether it’s to start a practice, refinance a practice, expand or relocate, acquire a new practice or finance major equipment for a practice. Then we will develop a customized solution, and assist you through every step of your loan application. Click here for additional information.
Discuss your needs with an expert
What are the requirements?
In general, SBA loans are designed for project amounts up to $20MM. SBA loans can include acquisition of commercial real estate, renovation of the commercial real estate, new construction, and/or heavy equipment. SBA loans typically involve a first lien on the commercial property a down payment contribution, commonly referred to as an “equity injection”, typically of 10%, from the Borrower. SBA loans for commercial real estate properties require a minimum of 51% owner-occupancy. INSIGNIA Financial Services offers exceptional customer service allowing for 24-hour pre-approvals and quick closings – often within 60 days.
Eligible Borrowers
For-profit, non-publicly traded businesses
Tangible business net worth (including affiliates) not to exceed $15MM
Average net income of the business not to exceed $5MM over the previous two years
Ownership must generally be comprised of 51% U.S. citizens or Legal Permanent Residents
Medical offices or medical facilities (such as labs and clinics)
Office buildings (including office condos)
Warehouses (and other industrial properties)
Day care facilities (for children or adults)
Free-standing restaurants
Limited-service, flagged hotels (some unflagged destination hotels will be considered)
Auto repair shops
Self-storage facilities
Assisted-living facilities
Call to ask about many other property types that are eligible
Non-profits (except sheltered workshops)
Passive holders of real estate and/or personal property
Lending institutions (mortgage brokers and correspondent lenders are eligible)
Life insurance companies (franchised agents are eligible)
Businesses located in a foreign country
Gambling concerns
Businesses which restrict patronage
Government owned entities (excluding Native American tribes)
Consumer and marketing cooperatives (producer cooperatives are eligible)
Businesses engaged in SBA loan packaging
Businesses that have previously defaulted on a Federal loan
Businesses engaged in political or lobbying activities
The lending professionals of INSIGNIA Financial Services have extensive experience originating, structuring, and closing SBA 7(a) and SBA 504 loans. We share an entrepreneurial spirit with our clients and understand the needs of small businesses and their owners. We work closely with our clients to provide the necessary capital to support the growth and prosperity or their business.
Contact Us
The team at IMPACT Commercial Real Estate Capital is available to discuss your financing objectives and answer any questions you may have.
Send us a secure message using the form below.