SBA Loans
SBA 7a vs 504
Which is right for you?
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Top 5 SBA franchise loan lender*
+$600 million franchise loans funded
+$2 billion in SBA loans since 2020
+2,000 SBA loans funded since 2020
Trying to decide what type of loan is best for your business can be confusing.
With all the rules, guidelines and regulations, it’s easy to get overwhelmed. But with the right information, you can confidently choose the best loan program for your specific business needs.
At First Bank of the Lake, we are proud to offer government-guaranteed Small Business Administration (SBA) 7a and 504 loans.
Use the chart below to discover the key differences between these two SBA loans and learn when you should consider each program.
| SBA 7a LOANS | SBA 504 LOANS | |
|---|---|---|
| Loan Amount | Up to $5 million | Up to $15 million |
| Common Uses of Loan |
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| Terms of Loan |
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| Interest Rate | Variable and fixed rate options available | Variable and fixed rate options available |
| Loan Fees |
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When should you consider the SBA 7a loan?
The 7a loan is the SBA’s most popular loan program for small business owners and many who would not otherwise qualify for a conventional small business loan find that they qualify for the SBA 7a program. While many people mistakenly think that this loan is only for those starting a new business, the SBA 7a loan is also an excellent financing tool for those who want to expand an established business, buy an existing business, purchase a building, or finance a construction project.
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When should you consider the SBA 504 loan?
Unlike the 7a loans, the SBA 504 loan program is more specific in terms of what you can use the funding for. Created by the SBA to support and encourage small business growth, the funds from this loan must be allocated toward fixed assets such as commercial real estate and equipment. These loans have low down payments and interest rates.
If you’re purchasing an existing building, expanding or building a new construction, the SBA 504 loan allows business owners to finance construction costs, closing costs and soft costs, including architectural fees, engineering, fees, surveys, title insurance and more within the loan. Machinery, equipment, furniture, fixtures, signage, landscaping and parking lots can also be included. This allows borrowers to retain more of their working capital for other expenses.
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If you’re unsure which program would be best for your business, remember that you do not need to go through this process alone.
Contact an experienced SBA Preferred Lender like First Bank of the Lake to discuss your options.
Real business owners. Real results.
Woof Gang Bakery SBA Loan Case Study
After years in HR, Kasia followed her passion for animals and, with a $345K SBA loan from First Bank of the Lake, quickly launched her Woof Gang Bakery & Grooming franchise — already nearing breakeven just months in.
Tint World SBA Loan Case Study
After losing his wife, a friend, and his life savings, Dan Billings reinvented his life with a Tint World franchise — and with guidance and an SBA loan from First Bank of the Lake, his business is thriving and he’s already eyeing a second location.
Lifetime Green Coatings SBA Loan Case Study
Father and son duo Barry and Parker Norfleet launched six Lifetime Green Coatings franchises with a $400K SBA loan from First Bank of the Lake — quickly setting up operations and nearly breaking even within just three months.
What Our Customers Say
Gave Me the Confidence I Needed
Huge thanks to Tammy and Brandi. Tammy was my first point of contact and gave me the confidence I needed since there isn't a local branch near where I live. Brandi has been answering ALL my questions since and has excellent follow up and has taken great care of me.
— Michele Houston
Genuinely Interested in Helping My Business Succeed
First Bank of the Lake was a tremendous help in securing a 504 small business loan for my company. Every staff member I interacted with was professional, friendly, and genuinely interested in helping my business succeed.
— Don Kamb
Exceptional Service
I cannot say enough positive things about my experience working with Eric as my SBA loan officer. From start to finish, he provided exceptional service and went above and beyond to ensure that every issue we encountered was resolved quickly and efficiently.
— Bryan Crowe