SBA 7a and 504 Loans
Globus help you secure the necessary funding to fulfill business needs. We are dedicated to providing our clients with the financial solutions they need to thrive.
Globus offers SBA 7a and SBA 504 loans
SBA 7a and SBA 504 loans are two types of loans offered by the Small Business Administration (SBA) in the United States. The SBA 7a loan is a general-purpose loan that can be used for a variety of business purposes, while the SBA 504 loan is specifically designed to finance commercial real estate and equipment purchases. Both loans are partially guaranteed by the SBA
Advantages of Obtaining This Loan
SBA loans are a highly versatile financing option that offers a wide range of features and benefits for small businesses. One of the main advantages of these loans is their flexibility, as they can be used for a variety of purposes, including working capital, inventory, supplies, equipment, business acquisitions, commercial real estate, large assets, and refinancing.
Features and benefits of SBA 7a and SBA 504 loans
SBA 7a loan:
- Loan amounts up to $5 million
- Interest rates of +1.00%
- Can be used for a wide range of purposes, including working capital, inventory, supplies, equipment, business acquisitions, commercial real estate, large assets, and refinancing
- Suitable for for-profit businesses that demonstrate good credit, management, and the ability to repay
- No prepayment penalties
SBA 504 loan:
- Loan amounts up to $15 million
- Interest rates of +2.75% based on the prime index
- Specifically designed for commercial real estate and equipment purchases
- Suitable for for-profit businesses that demonstrate good credit, management, and the ability to repay, with a tangible net worth of less than $15 million and a net income of less than $5 million after taxes for the past two years
- No prepayment penalties
Differences between SBA 7a and SBA 504 loans:
- Loan amounts: SBA 7a loans offer funding up to $5 million, while SBA 504 loans offer financing up to $15 million.
- Interest rates: SBA 7a loans have a lower interest rate of +1.00%, while SBA 504 loans have a slightly higher interest rate of +2.75% based on the prime index.
- Loan purposes: SBA 7a loans can be used for a wide range of purposes, while SBA 504 loans are specifically designed for commercial real estate and equipment purchases.
- Eligibility requirements: Both loans require for-profit businesses to demonstrate good credit, management, and the ability to repay. However, SBA 504 loans have additional eligibility requirements, including a tangible net worth of less than $15 million and a net income of less than $5 million after taxes for the past two years.
Take advantage of our financing options and watch your business grow.
Talk to a Globus Capital Advisor now!
