# SBA 7(a) vs SBA 504: Which Uses and Limits Differ? > SBA 7(a) can combine eligible business uses in a loan up to $5 million. SBA 504 is for eligible fixed assets and pairs a bank first lien with an SBA/CDC portion; that portion's limit is separate from total project financing. Canonical: https://riversidepark.capital/sba-7a-vs-sba-504 Markdown: https://riversidepark.capital/sba-7a-vs-sba-504.md ## Quick answer SBA 7(a) can combine eligible business uses in a loan up to $5 million. SBA 504 is for eligible fixed assets and pairs a bank first lien with an SBA/CDC portion; that portion's limit is separate from total project financing. ## Is your request a business purchase, a fixed-asset project or both? List real estate, equipment, acquisition costs and working capital separately. A request that combines a business purchase with operating needs is different from financing a building for an existing business. The applicable program must permit each proposed use; a general request to borrow against equity is not enough. **Where it fits:** For a qualifying fixed-asset project, Typically 50% bank first lien, 40% SBA/CDC second lien and 10% borrower equity on a qualifying project. The structure is typical, not universal. Do not count the SBA/CDC portion as the entire loan package, and do not treat the combined $10 million SBA limit as a single 7(a) loan. **Example:** Illustrative: buying a business with equipment and working-capital needs starts with a 7(a) use-of-proceeds review. Buying premises for an existing operating business may warrant a 504 discussion. If both programs are considered, the team must confirm the coordination rules and eligibility. **Fit check:** Owner-occupied commercial real estate eligibility requirements apply. RPC's public minimum FICO is 680; this is RPC's guideline, not a universal SBA credit-score rule. Business repayment capacity and SBA eligibility are reviewed individually; no common SBA DSCR floor is published here. Apply with your property and financing request, or submit a deal as a broker through Partners. ## Loan parameters - Loan size: SBA 7(a): up to $5 million per loan. SBA 504: SBA/CDC portion up to $5 million, or $5.5 million for qualifying manufacturing and energy projects. Total project financing can be larger. - Loan type: SBA Financing ## Eligible assets - Qualifying owner-occupied commercial real estate - Eligible business acquisitions under SBA 7(a) - Eligible equipment and working capital under SBA 7(a) - Eligible long-life equipment under SBA 504 ## Underwriting guidelines - Up to 90% financing for qualifying SBA transactions - Owner-occupied commercial real estate eligibility requirements apply - SBA 7(a): up to $5 million per loan - SBA 504: SBA/CDC portion up to $5 million ($5.5 million for qualifying manufacturing and energy projects); total project financing can be larger - Closing in as little as 45 days for qualified transactions - Owner-occupied commercial real estate eligibility requirements apply. RPC's public minimum FICO is 680; this is RPC's guideline, not a universal SBA credit-score rule. Business repayment capacity and SBA eligibility are reviewed individually; no common SBA DSCR floor is published here. - RPC handles SBA terms individually. Submit an application for review; this page does not offer an automated rate-sheet quote. - Property and business eligibility are confirmed for each SBA transaction ## How do SBA 7(a) and 504 compare? (as of 2026-10-08) | Question | SBA 7(a) | SBA 504 | | --- | --- | --- | | What uses are described? | Owner-occupied commercial real estate, business acquisition, equipment and working capital | Owner-occupied commercial real estate and long-life equipment | | Which limit applies? | $5 million per loan | $5 million SBA/CDC portion; $5.5 million for qualifying manufacturing/energy | | Is project financing the same as the SBA portion? | The per-loan ceiling applies to the 7(a) loan | No: bank first lien and borrower equity are additional parts | | How does RPC quote terms? | Individual review and manually confirmed terms | Individual review and manually confirmed terms | - Up to the published SBA financing ceiling only for qualifying transactions. Owner-occupied CRE eligibility requirements apply. ## FAQs **Q: Can 504 finance general working capital?** 504 focuses on eligible fixed assets rather than general working capital. Discuss eligible operating-capital needs under 7(a) and keep the use-of-proceeds budget explicit. **Q: Does combining the programs change their individual limits?** No. The eligible combined limit is $10 million under the applicable coordination rules; the 7(a) per-loan and 504 SBA/CDC portion limits remain separate. **Q: Do the commercial DSCR rules automatically apply?** No. SBA business repayment and eligibility are reviewed individually. This page does not reuse the conventional CRE DSCR floor as an SBA underwriting standard. ## Related - [SBA Financing](https://riversidepark.capital/sba-loans) - [Apply for financing](https://riversidepark.capital/apply) - [Submit a deal as a broker](https://riversidepark.capital/partners) - [SBA 7(a) program and eligible uses (SBA.gov)](https://riversidepark.capitalhttps://www.sba.gov/loans/7a-loans/) - [SBA 504 program and eligible uses (SBA.gov)](https://riversidepark.capitalhttps://www.sba.gov/loans/504-loans/) - [SBA policy: coordinating 7(a) and 504 limits](https://riversidepark.capitalhttps://legacy.sba.gov/document/policy-notice-5000-879058-coordination-7a-504-maximum-loan-limits) --- Source: Riverside Park Capital - https://riversidepark.capital/sba-7a-vs-sba-504