SBA 504 or/vs SBA 7(a)?
Which one do you go with and why?
[{"id": "ckk49gv", "text": "http://cdcloans.com/lender/504-7a-loan-comparison/\n\nGreat table comparison of each", "replies": [], "depth": 1}, {"id": "ckk4aqm", "text": "Those are two completely different things. An SBA 7(a) is a general business loan, compared to an SBA 504 which is a real estate loan designed to allow you to purchase a building, in which your company will be occupying more than 50% of the space, where you put 10% of the purchase price down, with a loan length of 20 years, at 4-5%. The authorizing bank is accountable for the 'least riskiest' 40% of the loan, while the feds take on the riskiest 50%. It's a win win for everyone, and I highly recommend the SBA 504. I wish I could tell you more about a SBA 7, but I am not as knowledgeable with that one.", "replies": [{"id": "ckkhexc", "text": "mmm, thank you for pointing that out. It was not brought to my attention that is was a business loan. \n\nFunny, my short google searches also didn't yield that result as I was trying to compare the two. When I do the search alone it is very obvious is is a business loan. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "ckktt6z", "text": "I have done SBA underwriting and know both products pretty well.  \n\nYou can do a 7A loan for real estate, but banks are tighter on leverage because the first lender carries all the risk after the SBA guarantee. 504 loans allow more leverage because the 1st lender is only carrying 50% LTV.  \n\nIf you're doing a bus-ac or need equipment, inventory etc then 7A is the way to go because you can get all of that financed in one package.  ", "replies": [], "depth": 1}]