# SBA Loans: What Do 7(a) and 504 Finance?

> SBA 7(a) supports eligible business uses, including acquisitions and real estate; SBA 504 focuses on qualifying fixed assets. Up to 90% financing is available only for qualifying SBA transactions, with owner-occupied CRE eligibility requirements.

Canonical: https://riversidepark.capital/sba-loans
Markdown: https://riversidepark.capital/sba-loans.md

## Quick answer

SBA 7(a) supports eligible business uses, including acquisitions and real estate; SBA 504 focuses on qualifying fixed assets. Up to 90% financing is available only for qualifying SBA transactions, with owner-occupied CRE eligibility requirements.

## Which SBA program matches what you need to finance?

Start with the use of proceeds and the operating business, rather than the property alone. A business acquisition that also needs equipment or working capital may call for 7(a). A qualifying owner-occupied building or long-life equipment project may call for 504. Passive rental investment belongs in a separate financing discussion.

**Where it fits:** 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. Eligible combined 7(a) and 504 financing can reach $10 million under the applicable SBA coordination rules for loans numbered on or after July 4, 2026. This does not raise either individual program's limit. RPC handles SBA terms individually. Submit an application for review; this page does not offer an automated rate-sheet quote.

**Example:** Illustrative structure for a qualifying 504 project: Typically 50% bank first lien, 40% SBA/CDC second lien and 10% borrower equity on a qualifying project. The bank first lien and SBA/CDC portion are separate pieces; the SBA/CDC ceiling is not a ceiling on the entire project. Additional equity may be required depending on the transaction.

**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

## Which program facts apply to this request? (as of 2026-10-08)

| Fact | Public guideline |
| --- | --- |
| Loan amount | 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. |
| Program condition | Up to 90% financing for qualifying SBA transactions |
| Program condition | Owner-occupied commercial real estate eligibility requirements apply |
| Program condition | SBA 7(a): up to $5 million per loan |
| Program condition | SBA 504: SBA/CDC portion up to $5 million ($5.5 million for qualifying manufacturing and energy projects); total project financing can be larger |
| Program condition | Closing in as little as 45 days for qualified transactions |
| Program condition | 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. |
| Program condition | RPC handles SBA terms individually. Submit an application for review; this page does not offer an automated rate-sheet quote. |
| Program condition | Property and business eligibility are confirmed for each SBA transaction |

- These are public guidelines, not a loan commitment. Final terms depend on underwriting.

## FAQs

**Q: Does every SBA transaction receive 90% financing?**

No. Eligibility, project type and underwriting determine the required equity. The maximum financing headline applies only to qualifying transactions.

**Q: What is the SBA closing timeline?**

Closing in as little as 45 days for qualified transactions, subject to business eligibility, documentation, valuation, title and underwriting.

**Q: Is the 504 limit the total property purchase budget?**

No. The SBA/CDC portion can be up to $5 million, or $5.5 million for qualifying manufacturing and energy projects. A bank first lien and borrower equity can make total project financing larger.

## 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)
- [Compare SBA 7(a) and 504](https://riversidepark.capital/sba-7a-vs-sba-504)
- [Owner-occupied financing](https://riversidepark.capital/owner-occupied-commercial-real-estate-financing)
- [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)

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Source: Riverside Park Capital - https://riversidepark.capital/sba-loans