SBA real estate loans · 504 & 7(a)
Stop paying your landlord's mortgage. Start paying yours.
Buy the building your business lives in with as little as 10% down and 25-year fully amortizing terms, no balloons. And the space you don't use? Tenants can help pay for it.
Program snapshot
SBA at a glance
- Built for
- businesses occupying 51%+
- Down payment
- as little as 10%
- Terms
- 25-yr fully amortizing
- Rates
- government-backed, fixed options
- Works for
- purchase, build, or refinance
SBA 504 and 7(a) programs through participating lenders and CDCs, subject to SBA eligibility and guidelines, which change without notice. Not an offer or approval.
Rent builds your landlord's wealth. This builds yours.
We broker SBA routes through wholesale partners and quote them beside conventional owner-occupied options, so the comparison is never hypothetical.
10%
down on your own building
Owner math that beats renting
Conventional commercial wants 25 to 35% down. SBA programs put a business into its own building with as little as 10%, on 25-year fully amortizing terms with no balloons and no five-year reprice ambushes.
- As little as 10% down
- 25-year fully amortizing, no balloons
- Working capital stays in the business
40%
of the project at a long-term SBA fixed rate
The 504: a rate you couldn't get alone
The 504 splits the project three ways: a bank covers about half, an SBA-backed piece covers 40% at a long-term fixed rate priced off government bonds, and you bring the last 10%. Small businesses borrowing at nearly institutional pricing.
- Below-market fixed rate on the SBA piece
- Project sizes well into eight figures
- Real estate and heavy equipment qualify
$5M
7(a) ceiling, real estate and more
The 7(a): the Swiss Army loan
The 7(a) buys the building and can carry working capital, equipment, or even a business acquisition in the same loan. Simpler structure, faster path on smaller deals, and the same low-down-payment logic.
- Real estate plus working capital in one
- Business acquisitions can ride along
- The nimbler tool for smaller projects
Built for owner-operators
The lease was always temporary. The building doesn't have to be.
Your tenants pay part of it
Occupancy means 51% of an existing building, or 60% of one you build. The rest can be leased out, which means rental income helps carry the mortgage on the building your business now owns instead of rents.
Build it from dirt
SBA financing covers ground-up construction of your own facility: the build-to-suit warehouse, clinic, or shop your operation has outgrown its lease waiting for. One structure funds the land, the build, and the long-term loan.
The buildings banks call special-purpose
Daycares, auto repair shops, medical and dental offices, restaurants, gas stations, and warehouses all get financed here, including the property types conventional lenders surcharge or decline. Special-purpose buildings and newer businesses may add about 5% to the down payment, and we'll tell you upfront when that applies.
Refinance the balloon away
Already own your building on bank terms with a balloon looming? SBA refinance programs move qualifying commercial debt onto 25-year fully amortizing terms, trading the every-five-years renegotiation for one payment that just continues.
From tenant to owner, one structure.
- 1
Tell us about the business and the building
Time in business, rough financials, and the property you're eyeing, or the lease you're tired of. That's enough to start.
- 2
We structure 504 vs 7(a)
Both SBA routes quoted beside conventional owner-occupied options, so you see the whole trade before committing.
- 3
Close, move in, build equity
The rent check becomes a mortgage payment on a building you own, and every month buys back a piece of it.
The quick eligibility check.
- 51% owner-occupancy (60% for new builds)
- Warehouses, medical, daycare, auto, restaurants
- Purchase, ground-up, or refinance
- 25-year fully amortizing terms
- Most privately held businesses fit SBA size rules
- Working capital can ride along (7a)
- Tenants welcome in the extra space
Buying income property instead of your own building? Our commercial real estate page is the investor side. And when the business owner needs a home loan, bank statement programs qualify you on deposits, not tax returns.
Straight answers
What are SBA real estate loans, in plain English?
Government-backed financing for businesses buying, building, or refinancing the property they operate from. The 504 splits the project between a bank, a fixed-rate SBA-backed piece, and your 10%. The 7(a) is one flexible loan that can bundle the building with working capital or equipment. Both exist so small businesses can own instead of rent without emptying the till.
Is 10% down really real?
Yes, for established businesses buying general-purpose buildings. Two honest add-ons: a startup or a special-purpose property, like a gas station or daycare, typically adds about 5% each. Even at the maximum, you're at half of what conventional commercial demands.
How does owning compare to the rent I pay now?
Often startlingly close on the monthly, which is the whole argument: the same check that used to vanish into a landlord's pocket now builds your equity, your rate doesn't escalate the way leases do, and the building becomes a retirement asset your business pays for. Run your lease against a quote and see. On the tax side, talk to your CPA.
Does my business qualify?
If it's a for-profit US business and your company will occupy at least 51% of the building, probably. SBA size standards are far more generous than the name suggests: the overwhelming majority of privately held companies fit. Time in business and cash flow shape the terms, and we'll tell you where you stand in the first conversation.
Can I rent out the space I don't use?
Yes. Own a 10,000-square-foot building, occupy 5,100 feet, and lease the rest: the tenant income helps carry the note. Plenty of owners effectively cut their real housing cost to less than their old rent this way.
504 or 7(a): which one is mine?
Rough rule: the 504 is the pure real estate play, built for bigger projects and prized for its long-term fixed rate on the SBA piece. The 7(a) is the flexible bundle, sharper for smaller deals or when the building purchase travels with working capital or an acquisition. We quote both and let your project pick.
I'm buying property as an investment, not for my business. Wrong page?
Right instinct. SBA requires your business to occupy the building. Income property lives on our commercial real estate page, where the building's rent does the qualifying instead of your occupancy.
Your rent receipt could have been a deed.
Two minutes to send your business and the building, or just the lease you're done with. No cost, no obligation, and both SBA routes quoted beside conventional.
Guthix Lending • NMLS# 2672037 · We are not affiliated with or acting on behalf of the U.S. Small Business Administration or any government agency. SBA 504 and 7(a) loans are made through participating lenders and certified development companies and are subject to SBA eligibility, size standards, owner-occupancy requirements, guaranty fees, and program guidelines, all of which change without notice. Down payment requirements vary with business history and property type; figures shown reflect the most favorable available structures. Nothing here is tax or legal advice. Not all borrowers or properties will qualify. This is not a commitment to lend or an offer of specific terms.