SBA Loan Calculator

SBA 504 Loan vs Other Financing Options

Compare SBA 504 loans with other business financing solutions to find your best option

Quick Comparison Overview

Features	SBA 504 Loan	Traditional Commercial	SBA 7(a) Loan
Down Payment	10-15%	20-30%	10-20%
Interest Rates	Fixed, Below Market	Variable, Market Rate	Variable or Fixed
Term Length	10-25 years	5-15 years	Up to 25 years

Detailed Comparisons

SBA 504 Loan vs Traditional Commercial Loan

SBA 504 Advantages

Lower down payment (10%)
Fixed interest rates
Longer repayment terms
Below-market interest rates
Multiple projects eligible

Traditional Loan Advantages

Faster approval process
Less paperwork
No government restrictions
More flexible terms
No job creation requirement

SBA 504 Loan vs SBA 7(a) Loan

SBA 504 Best For

Real estate purchase
Major equipment acquisition
Long-term fixed assets
Construction projects
Building improvements

SBA 7(a) Best For

Working capital
Inventory purchase
Business acquisition
Debt refinancing
General business purposes

When to Choose Each Option

Choose SBA 504 When:

Purchasing commercial real estate
Buying heavy equipment
Need long-term fixed rates
Want lowest down payment
Can wait for approval

Choose Traditional When:

Need quick funding
Want flexible terms
Have strong financials
Can make larger down payment
Need simpler process

Choose SBA 7(a) When:

Need working capital
Want to buy a business
Need inventory funding
Want to refinance debt
Need flexible use of funds

Cost Comparison Example

$1 Million Project Comparison

Cost Factor	SBA 504	Traditional	SBA 7(a)
Down Payment	$100,000	$250,000	$150,000
Monthly Payment*	$5,200	$7,100	$6,300
Term Length	25 years	15 years	25 years

*Estimated payments based on current market rates. Actual rates and payments may vary.

Compare Your Options

Use our calculator to see how an SBA 504 loan compares to other financing options for your specific needs.