What is SBA 504 & 7(a) Loans?
SBA 504 and 7(a) loans are U.S. Small Business Administration-backed financing programs that help small businesses buy commercial property with lower down payments than conventional loans. The 504 program is geared toward owner-occupied real estate and equipment; the 7(a) program is more flexible general-purpose financing. They make ownership achievable for businesses that lack a large cash down payment.
Example: A business owner buys their own building with an SBA 504 loan, putting just 10% down instead of the 25–30% a conventional commercial loan would require.