SBA Loans Product Comparison Chart

There are a wide variety of SBA Loans. Compare the features and benefits of SBA Loans below.

Programs and terms are subject to change. Ask us about SBA qualified Lenders to meet your financing requirements.


	SBA 7(a) Term Loan	SBA LowDoc	SBAExpress	SBA 504 Term Loan
Eligibility	For-profit businesses Small business qualification by SBA guidelines Size varies by industry type	Same as 7(a) Term Loan	Same as 7(a) Term Loan	Existing, for-profit businesses Net worth $6MM or less, net profits after taxes $2MM or less 1 job created for every $50,000 in SBA loan funds
Loan Size	SBA loan guarantee can not exceed $1,500,000 Loan ceiling of $2,000,000	$150,000	From $100,000 to $250,000	From $150,000 to $3,000,000 ($2,000,000 for special purpose real estate) Maximum SBA loan $1,500,000 (Up to $4,000,000 for small manufacturers)
Use of Proceeds	– Land – Buildings – Machinery & Equipment – Purchase Business – Inventory – Working Capital	Same as 7(a) Term Loan	Same as 7(a) Term Loan	– Land – Buildings (new purchase, new construction or renovation) – Machinery & Equipment (minimum useful life of 10 years)
Financing	Provided by chosen lender, and SBA provides an 85% guarantee to the lender on loan amounts of $150,000 or less, 75% guarantee on loan amounts of $150,000 or more	SBA provides an 85% guarantee to Lender	Provided by Lender , and SBA provides a 50% guarantee	50% financed by Lender 40% SBA loan through Certified Development Co. 10% borrower injection (increased injection required on new businesses or special-purpose real estate)
Collateral	SBA requires Lender to take a secured interest in business assets and/or a mortgage on real estate	Same as 7(a) Term Loan	Same as 7(a) Term Loan	Lender holds first mortgage on real estate, and/or secured interest in equipment and machinery. SBA holds second mortgage on real estate, or second secured interest in equipment and machinery
Underwriting Requirements	– Personal guaranties by all owners of 20% or more – Adequate business collateral, or personal assets securing personal guaranty – example: mortgage on home – Hazard Insurance	Same as 7(a) Term Loan	Same as 7(a) Term Loan	– Personal guaranties by all owners of 20% or more – Life insurance on business principals in amount of SBA loan –Hazard Insurance
Loan Terms	– Working Capital — up to 7 years – Equipment — up to 10 years (or useful life) – Real Estate - up to 25 years	Same as 7(a) Term Loan	– Revolving line of credit – up to 3 years – Term loan – up to 5 years	– Lender's loan – minimum 10 years on Real Estate; 7 years on Machinery & Equipment – SBA/CDC loan – 20 years
Interest Rates	– Rates can be fixed or variable – NY Prime + 2.25% - term less than 7 years – NY Prime + 2.75% term greater than 7 years	Same as 7(a) Term Loan	– NY Prime + 6.5% for loans of $50,000 or less – NY Prime + 4.5% for loans over $50,000	– Lender's loan–negotiated rate between borrower and Bank (fixed or variable) – SBA/CDC loan – below market fixed interest payment , loan rate set when debenture is sold

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