SBA 504 and 7(a) Loans for Owner-Occupied Commercial Real Estate.
SBA 504 and 7(a) loans from $500,000 to $25 million for hotels, restaurants, medical, self-storage, franchises and business acquisitions, with as little as 10% down and 25-year terms. Originated, underwritten and packaged by UFIG, placed through our Capital Network of SBA lenders since 1998.
Fast Closings
Close in as little as 30 business days. UFIG streamlines the SBA process — removing the paperwork burden from you.
Most Business Types
Hotels, gas stations, restaurants, medical offices, day cares, farms, self-storage, and more — all eligible.
Competitive Rates
Government-backed programs mean lower rates than conventional loans. Fixed and variable rate structures available.
Nationwide Coverage
UFIG originates SBA loans across all 50 states. UFIG's correspondent channel places your file with the SBA lenders in its Capital Network: PLP banks, non-bank SBA lenders and CDCs.
Check Your SBA Eligibility
Answer 4 quick questions to see which SBA program fits your business. Takes 60 seconds — no credit check required.
SBA Doubles Combined Loan Limit
to $10 Million.
Effective July 4, 2026, the SBA increased the cumulative borrowing limit across its 7(a) and 504 programs from $5 million to $10 million per borrower. Qualified business owners can now stack both programs for the highest combined SBA financing level in the program's history.
SBA 7(a)
The SBA's most flexible program — covering working capital, equipment, real estate, and refinance in a single loan.
- Fixed or variable rates
- Terms up to 25 years
- Working capital eligible
- As low as 10% down
SBA 504
Long-term, fixed-rate financing for major fixed assets that promote business growth and job creation.
- Below-market fixed rates
- Terms up to 25 years
- Real estate and heavy equipment
- As low as 10% down
Capital-intensive businesses in hospitality, manufacturing, construction, healthcare, food production, and energy that previously hit the $5 million ceiling can now access up to $10 million by combining both SBA programs. UFIG is originating loans under the new limit now.
SBA 7(a) vs. SBA 504
Both programs offer government-backed financing — but they're designed for different needs. Here's how they compare side by side.
| Feature | SBA 7(a) | SBA 504 |
|---|---|---|
| Maximum Loan Amount | $5,000,000* | $25,000,000* |
| Minimum Loan Amount | $500,000 | $500,000 |
| Loan Term | Up to 25 Years | Up to 25 Years |
| Interest Rate Type | Fixed or Variable | Fixed (Below Market) |
| Down Payment | As Low as 10% | As Low as 10% |
| Use of Proceeds | Real Estate, Equipment, Working Capital, Refinance | Real Estate & Major Fixed Assets Only |
| Amortization | Fully Amortizing | Fully Amortizing |
| Property Must Be Owner-Occupied | ✓ Yes | ✓ Yes (51%+) |
| Working Capital Eligible | ✓ Yes | ✗ No |
| Ideal For | Flexible All-Purpose Financing | Large CRE Acquisitions |
*New for 2026: Borrowers can now combine 7(a) + 504 loans for up to $10M total SBA-backed financing. Effective July 4, 2026. Contact a UFIG loan officer to discuss stacking options.
Best for SBA 7(a)
Business owners who need flexible financing — combining real estate, equipment, and working capital in a single loan. Ideal for smaller acquisitions, refinances, or businesses that need capital beyond real estate.
Best for SBA 504
Business owners acquiring or expanding owner-occupied commercial real estate above $5M. The 504 program offers below-market fixed rates on large transactions — making it ideal for hotels, medical facilities, and industrial properties.
How SBA 504 and 7(a) loans work for commercial real estate
Most SBA pages are written by a bank with one credit box. UFIG is a loan correspondent: we originate, underwrite and package your file once, then deliver it through our Correspondent Lending channel or place it with the SBA lenders in our Capital Network, including Preferred Lender (PLP) banks, non-bank SBA lenders and Certified Development Companies. This guide explains how each program is built, who qualifies, and which one fits your deal.
SBA 504 loans for commercial real estate
The 504 program exists to finance owner-occupied real estate and heavy equipment with as little as 10% down and a long fixed rate. It is not one loan. It is two loans and your equity, closed together:
Special-purpose property (hotels, gas stations, car washes, self-storage) raises the borrower share to 15%. A start-up buying special-purpose property puts in 20%.
The first mortgage is a conventional commercial loan from a lender in our Capital Network, usually priced at Prime plus a margin or fixed for five to ten years, amortized over 20 to 25 years. The debenture is sold on the bond market each month, so its rate is set at closing and never moves. The blended cost of the whole package is the 504 composite rate; today it is shown in the rate table below.
What a 504 can pay for
- Purchase of land and an existing building your business will occupy
- Ground-up construction or a major renovation and expansion
- Long-life equipment (ten years or more) such as manufacturing lines, printing presses or medical imaging
- Refinance of qualifying commercial mortgage debt, with or without an expansion
Limits and terms
The CDC debenture is capped at $5 million ($5.5 million for manufacturers and energy-efficient projects), but the first mortgage has no SBA cap, so total 504 projects of $15 million to $25 million close routinely. Debentures carry a declining prepayment schedule over the first half of the term; the first mortgage follows the lender's own terms. Working capital cannot be included in a 504.
SBA 7(a) loans for real estate, business acquisitions and franchises
The 7(a) is the SBA's general-purpose guaranty. One lender provides the entire loan, the SBA guarantees up to 75% of it, and the loan can combine real estate, equipment, working capital, inventory and the purchase of a business in a single note. That flexibility is why most hotel, restaurant and franchise acquisitions use 7(a).
Terms
- Up to $5 million per borrower ($10 million combined with a 504 as of July 4, 2026)
- 25-year term when real estate is more than half the use of proceeds; 10 years for business acquisition, equipment and working capital
- Variable rate at Prime plus 1.50% to 3.00% depending on collateral, size and term (3.00% is the SBA maximum for loans over $350,000), or a fixed rate from some lenders
- Fully amortizing, no balloon
- 10% equity injection on most purchases and acquisitions
Where 7(a) wins
- Business acquisition with no real estate. Goodwill, equipment and inventory can be financed on a 10-year term. UFIG places these deals; a collateral shortfall is not a disqualifier under SBA rules.
- Franchises. Any brand listed in the SBA Franchise Directory is eligible, from hotel flags to quick-service restaurants and fitness concepts.
- Real estate plus working capital in one closing, such as a hotel purchase with a renovation reserve.
- Speed. PLP lenders approve 7(a) loans in-house without waiting for SBA sign-off.
The SBA guaranty fee (currently 0% to 3.75% of the guaranteed portion, by loan size) can be financed into the loan. When a seller will not wait for SBA timing, a commercial bridge loan can close the purchase first and the 7(a) or 504 takes it out.
SBA eligibility and the 51% owner-occupied rule
Both programs finance real estate for a business that will use it, not for a landlord. The SBA tests that with occupancy: your operating company must occupy at least 51% of an existing building (you may lease out the rest) or 60% of new construction, rising to 80% within ten years. Pure investment property, apartment buildings and buildings leased to unrelated tenants belong on our commercial property and multifamily pages instead.
What lenders look for
- A for-profit U.S. business that meets the SBA size standard (most do: a tangible net worth under $20 million and average net income under $6.5 million qualifies in any industry)
- Personal guaranties from every owner of 20% or more
- Credit of roughly 680 or better for the guarantors; lower scores with strong cash flow are placed case by case
- Debt service coverage of 1.15x to 1.25x on the business's historical or well-supported projected cash flow
- Equity injection of 10%, which can include seller financing on full standby in some acquisitions
- No delinquent federal debt; owners with prior SBA losses need a resolution
What the SBA will not finance
- Passive real estate investment or buildings held for rental income
- Lending, speculation, gambling, and businesses deriving most revenue from them
- Non-profits and most religious organizations
- Residential property (1 to 4 units)
- Businesses with any owner who is not a U.S. citizen or U.S. national living in the United States (green-card holders are no longer eligible as of March 1, 2026)
SBA loans by business and property type
The program that fits depends on what you are buying and whether working capital is part of the deal.
Hotels and motels
The most common UFIG SBA deal. 7(a) for acquisitions with a PIP or renovation budget; 504 for stabilized flagged hotels where the owner wants a long fixed rate. 15% down as special-purpose property. See hotel financing.
Restaurants and franchises
Almost always 7(a): the loan carries the real estate, the build-out, equipment and opening working capital. Franchise agreements for directory-listed brands satisfy the SBA's affiliation review.
Gas stations and C-stores
504 or 7(a), 15% down. Lenders require a Phase I environmental report and often a Phase II; UFIG orders them early so they do not hold up closing.
Self-storage
Owner-operated facilities qualify as owner-occupied. 504 fits acquisitions and expansions; 7(a) fits a purchase with lease-up working capital.
Medical, dental and veterinary
Practices buying their building use 504 for the lowest long-term cost; practice acquisitions with no real estate use 7(a) on a 10-year term.
Auto repair, car washes and child care
Special-purpose property at 15% down. Car washes and auto repair are 504 candidates for the equipment component; child-care centers are frequent 7(a) borrowers.
Manufacturing and industrial
504 debentures rise to $5.5 million for manufacturers, and the 504 can finance the plant and the heavy equipment in one project.
Farms and agricultural processing
Farms, packing houses and processors qualify. Compare with Farmer Mac and USDA B&I, which often price lower on rural real estate; see agricultural loans.
Business acquisitions
Buying an operating company, with or without its building, is a 7(a) deal. Seller notes on standby can count toward the equity injection. No real-estate collateral required.
How to choose between 504 and 7(a)
| Your situation | Program that usually fits | Why |
|---|---|---|
| Buying or building the real estate only | 504 | Lowest long-term cost; 40% of the project fixed for 25 years |
| Real estate plus working capital, equipment or inventory | 7(a) | One loan can carry every use of proceeds |
| Buying a business with no real estate | 7(a) | 504 requires fixed assets |
| Total project above $5 million | 504, or 504 + 7(a) stacked | The first mortgage has no SBA cap; stacking allows $10 million of SBA exposure |
| You want rate certainty for 20+ years | 504 | Debenture rate is fixed at closing |
| The seller needs to close in 45 days | 7(a) with a PLP lender, or bridge then SBA | No separate CDC approval step |
| Franchise purchase or build-out | 7(a) | Franchise build-outs mix real estate, FF&E and working capital |
Why a loan correspondent instead of your bank's SBA desk
A bank's SBA department can only approve what fits that bank: its industry limits, its geography, its appetite for special-purpose property this quarter. If a hotel or gas station is outside the box, the answer is no, and you start over somewhere else with a new application fee and another month gone.
UFIG works the other way around. We underwrite your file to SBA standards once, then deliver it through our Correspondent Lending channel or place it with the lender in our Capital Network whose credit box it fits, which may be a national PLP bank, a regional bank that wants your industry, a non-bank SBA lender, or a Certified Development Company for the 504 debenture. The same package that one bank declined is often approved by another at better pricing, because the second lender wanted the deal. One loan officer manages the file from first call to closing, and UFIG's fee is disclosed up front.
UFIG is a loan correspondent: the loan is originated, underwritten and packaged by UFIG and provided under SBA rules through our Correspondent Lending channel or an SBA lender in our Capital Network. That is the same role we have played in commercial lending since 1998.
SBA loan document checklist
Having these ready when you submit is what makes a 30-business-day close possible.
- Three years of business tax returns and a year-to-date profit and loss statement with balance sheet
- Three years of personal tax returns for each owner of 20% or more
- Personal financial statement for each guarantor (SBA Form 413)
- Business debt schedule
- Purchase agreement, or the payoff statement for a refinance
- Rent roll and leases if any space will be leased to others
- Résumés of the owners and key managers
- Business plan with two years of projections for start-ups, expansions and acquisitions
- Entity documents: articles, operating agreement, EIN
- Franchise agreement and the franchisor's disclosure document, if applicable
- Three years of seller financials for a business acquisition
- Phase I environmental report for gas stations, dry cleaners, auto repair and industrial sites
SBA loan rates today
Indicative SBA pricing
| Program | How it is priced | Today |
|---|---|---|
| SBA 7(a), variable | Prime (7.00%) plus a margin by loan size and term | 7.10% and up |
| SBA 504 composite | Blend of the 50% first mortgage at Prime + 1.50% and the 40% debenture | 7.31% |
| SBA 504 debenture (25-year) | Fixed at closing, set by the monthly debenture sale | 5.82% |
Indicative rates for qualified borrowers, subject to lender underwriting and SBA guidelines. The 504 composite is the effective rate on the whole 90% financed, computed as (50% × first mortgage + 40% × debenture) ÷ 90%. See today's commercial mortgage rates for every program.
SBA Loan Calculator
Estimate your monthly payment based on loan amount, term, and interest rate. For a custom quote, contact a UFIG loan officer.
Loan Parameters
Estimated Payment
Estimates only. Actual rates and payments determined by lender underwriting, creditworthiness, and SBA program guidelines. Contact a UFIG loan officer for a custom quote.
SBA Loans We've Closed
Anonymized deal snapshots from recent UFIG SBA closings across the country.
Boutique Hotel — Southwest US
Owner-operator acquiring a 42-room boutique hotel. Conventional financing declined due to property age. UFIG structured an SBA 7(a) with 10% down and a 25-year term.
Medical Office Building — Southeast US
Multi-physician group acquiring their own office building to eliminate rent. SBA 504 provided fixed-rate financing below what any conventional lender could offer.
Full-Service Restaurant — Midwest US
First-time owner acquiring an established restaurant with additional working capital folded into a single SBA 7(a) loan — something conventional lenders couldn't structure.
Qualified Business Properties
Our Simple 4-Step Process
Submit Your Deal
Complete the form or call (888) 556-4029. We review every deal within 1 business day.
Receive Your Proposal
A dedicated loan officer sends a personalized term sheet tailored to your business and SBA program.
SBA Processing
We handle the SBA paperwork — removing the documentation burden and guiding you through approval.
Close
Close in as little as 30 business days. The placing lender provides the loan; your UFIG loan officer stays with the file through closing.
Get a Free SBA Loan Quote
A dedicated UFIG loan officer will contact you within 1 business day. No obligation. Owner-occupied commercial properties only — minimum $500,000.
- Close in as little as 30 business days
- $500K – $25M loan amounts
- 7(a) and 504 programs available
- Fixed and variable rate options
- Since 1998 — $14B+ financed
Request a Quote
Commercial loans only — minimum $500,000.
What Sets UFIG Apart
Since 1998, UFIG has been a trusted loan correspondent for business owners across the country — simplifying SBA financing so you can focus on your business.
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One Officer, Start to Finish
Your dedicated loan officer handles your deal from application to close — no handoffs, no confusion.
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We Handle the Paperwork
SBA loans are known for documentation complexity. UFIG streamlines the process — taking the burden off you.
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Correspondent Lending Access
UFIG's correspondent channel and a Capital Network of 100+ lenders mean better rates and more program options.
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Both 7(a) and 504 Programs
We originate both major SBA programs — ensuring you get the right structure for your specific deal.
"When your bank says no, UFIG finds a way. We've been solving complex commercial financing challenges for over 26 years."
SBA Loan FAQ
Everything you need to know before submitting your deal.
What does it take to qualify?
You must operate for profit, be considered a small business as defined by SBA, be engaged in business in the US, have reasonable invested equity, and not be delinquent on any existing federal debt. A UFIG loan officer will review your qualifications at no charge.
What is the minimum loan amount?
UFIG's minimum SBA loan is $500,000. Maximum is $25M for SBA 504 programs. UFIG has correspondent relationships that can accommodate larger transactions when needed.
How fast can UFIG close an SBA loan?
Qualified deals with complete documentation can close in as little as 30 business days. UFIG streamlines the SBA paperwork process — significantly reducing the typical burden on borrowers.
What is the difference between 7(a) and 504?
SBA 7(a) is the most flexible — covering working capital, equipment, and real estate up to $5M. SBA 504 focuses on major fixed assets like land and buildings, with longer terms and fixed rates up to $25M. As of July 4, 2026, borrowers can combine both programs for up to $10M in total SBA-backed financing — a significant increase from the previous $5M cumulative cap.
Do I need to be a U.S. Citizen?
Yes. Since March 1, 2026, SBA requires every direct and indirect owner of a 7(a) or 504 borrower to be a U.S. citizen or U.S. national whose principal residence is in the United States. Green-card holders and visa holders are no longer eligible, even as minority owners, and SBA looks back six months at prior ownership. If your ownership includes a non-citizen, UFIG can place the loan with a conventional, bridge or private-capital lender in our Capital Network instead.
Can I have more than one SBA loan?
Yes. As of July 4, 2026, the SBA has doubled the cumulative borrowing limit to $10 million across 7(a) and 504 programs combined. Borrowers who secure a 7(a) loan first can access up to $5M through 7(a) and up to $5M through 504 — for a total of $10M in SBA-backed financing. UFIG will assess your current SBA exposure and structure the most advantageous combination for your deal.
What is the SBA 504 interest rate today?
The 504 composite rate, the blended cost of the 50% first mortgage and the 40% CDC debenture, is about 7.31% today, based on a first mortgage at Prime plus 1.50% and a 25-year debenture of 5.82%. The debenture portion is fixed at closing for the full term. The live figure is in the rate table on this page and on UFIG's today's rates page.
Can I use an SBA loan to buy a hotel, gas station or self-storage facility?
Yes. All three are eligible as owner-operated businesses. They are treated as special-purpose property, so the equity requirement rises from 10% to 15% (20% for a start-up). Hotels usually use 7(a) when a renovation or PIP is included and 504 for stabilized properties; gas stations need a Phase I environmental report; owner-operated self-storage qualifies as owner-occupied.
Can I buy a business with an SBA loan if there is no real estate?
Yes. The SBA 7(a) program finances the purchase of an operating business, including goodwill, equipment and inventory, on a 10-year term with 10% equity, part of which can be a seller note on standby. A shortfall in hard collateral is not a reason for decline under SBA rules. UFIG places business-acquisition and franchise loans through its Capital Network.
What does owner-occupied mean for an SBA loan?
Your operating business must occupy at least 51% of an existing building, or 60% of a newly constructed building rising to 80% within ten years. You may lease the remaining space to other tenants. Investment property and apartment buildings do not qualify for SBA financing; UFIG places those through conventional, agency and CMBS programs instead.
How much down payment does an SBA loan require?
It depends on the program. SBA 7(a): 10% of total project cost for a start-up or a complete change of ownership; otherwise the lender sets its own policy, and SBA adds no special-purpose surcharge. SBA 504: 10% normally, 15% for a special-purpose property (hotel, gas station, car wash, self-storage) or a start-up, and 20% when the project is both. On a 7(a) business acquisition, a seller note placed on full standby can count toward part of the injection.
Does UFIG lend the SBA money itself?
No. UFIG is a commercial loan correspondent. We originate, underwrite and package your SBA file, then deliver it through our Correspondent Lending channel or place it with the SBA lender in our Capital Network whose credit policy fits the deal, including Preferred Lender (PLP) banks, non-bank SBA lenders and Certified Development Companies. The placing lender provides the loan under SBA rules; one UFIG loan officer manages the file from first call to closing.
Can I refinance an existing commercial mortgage with an SBA loan?
Yes. Both programs allow refinancing of qualifying commercial real estate debt on owner-occupied property, with or without an expansion project, subject to SBA's refinance rules on the age of the debt, the benefit to the borrower and the use of any cash out. A 7(a) refinance can also consolidate business debt and add working capital.
Are SBA loans available for franchises?
Yes. Any brand listed in the SBA Franchise Directory is eligible for 7(a) and 504 financing, including hotel flags, quick-service and full-service restaurants, fitness, child care and automotive concepts. The loan can cover the franchise fee, build-out, equipment, real estate and opening working capital. UFIG works with franchisees and franchisors on single-unit and multi-unit financing.
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