Lowest down payment

SBA 504 & 7(a)

SBA 504 and 7(a) loan programs for owner-occupied commercial real estate and business acquisitions. Low down payments and long-term fixed rates backed by the U.S. Small Business Administration.

Up to 90% LTV Long-term fixed rates Low down payment (10%) No balloon payment
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Loan Range

$500K – $20M

Max LTV

Up to 90%

Documentation

Full Doc

Closing Time

60–90 Days

Property Type

Owner-Occupied Commercial

Borrower Type

Business Owner

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Overview

An SBA loan lets a business owner buy, build, or refinance the owner-occupied commercial real estate their company operates from, with a low down payment and long-term financing backed by the U.S. Small Business Administration. Cressida Direct offers both SBA programs — the flexible SBA 7(a) loan and the fixed-asset SBA 504 loan — with a $500,000 minimum loan amount across both. Both are full-documentation loans for property where your business occupies a majority of the space. The comparison below breaks down which structure fits your deal.

Program Parameters

ParameterDetails
Loan Range$500K – $20M
Max LTVUp to 90%
DocumentationFull Doc
Closing Time60–90 Days
Property TypeOwner-Occupied Commercial
Borrower TypeBusiness Owner
Tax ReturnsRequired
Balloon PaymentNone

Eligible Property Types

Owner-Occupied CommercialOfficeRetailIndustrialMixed-UseHospitality

SBA 7(a) vs. SBA 504 at a glance

Both programs finance owner-occupied commercial real estate with a low down payment and a $500,000 minimum loan amount. Here is how the two SBA programs compare so you can see which structure fits your deal.

SBA 504

Fixed assets

Best for
Owner-occupied real estate & equipment
Use of funds
Purchase, construction, renovation, equipment
Structure
Conventional 1st + CDC/SBA 2nd + ~10% equity
Down payment
As low as 10%
Max term
Up to 25 years, long-term fixed
Loan size
$500,000 – $20,000,000

SBA 7(a)

Flexible use

Best for
Real estate + working capital or acquisition
Use of funds
Real estate, equipment, working capital, acquisition, refi
Structure
Single SBA-guaranteed loan from one lender
Down payment
As low as 10%
Max term
Up to 25 years on real estate
Loan size
$500,000 – $5,000,000

Eligibility and use of funds

  • For-profit small businesses that occupy a majority of the property and meet SBA size standards.
  • Underwritten on business cash flow, owner credit, and character — full documentation (business and personal tax returns and financials).
  • SBA 504 funds fixed assets: buying, building, or renovating owner-occupied commercial real estate and major long-life equipment.
  • SBA 7(a) is broader — real estate plus working capital, equipment, inventory, business acquisition, or eligible debt refinance.

The SBA timeline and what to expect

  • Typically closes in 60–90 days once a complete file is in hand.
  • More moving parts than a light-doc loan: lender underwriting, SBA guaranty review, appraisal, and title work.
  • On a 504, add coordination with a Certified Development Company alongside the first-mortgage lender.
  • Complete, accurate financials up front keep the file on schedule; our SBA team manages it end to end.

Why business owners choose SBA financing

  • As little as 10% down preserves working capital for operating and growing the business.
  • Long amortization and a long-term fixed rate keep the payment predictable for years.
  • A path to owning your location instead of renting — hard to match with conventional financing.
  • Can't document income on tax returns? Compare our bank-statement Owner-Occupied Commercial program.

Worked Loan Scenario

Worked scenario: an owner-occupied building purchase with SBA 504

An established manufacturing business has outgrown its leased space and wants to buy the building it operates from. The owners want to keep as much cash in the business as possible, so a low-down-payment SBA 504 loan fits the deal. The property is a $1,250,000 owner-occupied industrial building the company will fully occupy.

The Deal

Property type
Owner-occupied industrial building
Purchase price
$1,250,000
Business
Established, operating 3+ years
Borrower
Operating company / corporation
Documentation
Full doc — tax returns & financials
Program
SBA 504

How We Structured It

Conventional first mortgage
$625,000 (50%)
SBA/CDC second mortgage
$500,000 (40%)
Total SBA-backed financing
$1,125,000 (90%)
Borrower equity injection
$125,000 (10%)
Rate / term
Long-term fixed, 25-year amortization
Balloon payment
None on SBA-backed portion
Time to close
~75 days

The takeaway: financing 90% through a conventional first plus an SBA-backed second lets the owner put just 10% down — instead of the 20–25% a conventional purchase demands — preserving working capital while locking a long-term fixed rate with no balloon on the SBA portion.

Related tools & programs

Owner Occupied Commercial

Can't show income on tax returns the way an SBA full-doc file requires? Qualify on 12–24 months of business bank statements — no tax returns — on an owner-occupied commercial loan.

Frequently Asked Questions

What is the difference between SBA 504 and SBA 7(a)?
In short: SBA 504 is purpose-built for fixed assets — owner-occupied commercial real estate and long-life equipment — while SBA 7(a) is a single, more flexible loan that can also fund working capital, inventory, equipment, or a business acquisition (up to $5,000,000). See the SBA 7(a) vs. SBA 504 comparison above for a full side-by-side breakdown of structure, use of funds, and loan size.
Am I eligible for an SBA loan?
SBA financing is available to for-profit small businesses that occupy the majority of the commercial property being financed and meet the SBA's size standards. The SBA and the lender look at the business's ability to repay from its cash flow, the owner's credit and character, and the health of the operating business. Because these are full-documentation loans, expect to provide business and personal tax returns and financial statements as part of the approval process.
What can I use SBA loan funds for?
SBA 504 funds are directed at fixed assets — purchasing, constructing, or renovating owner-occupied commercial real estate, and acquiring major long-life equipment. SBA 7(a) is broader: in addition to real estate, a 7(a) loan can fund working capital, equipment, inventory, a business acquisition, and the refinance of eligible business debt. If your project involves more than just the building, 7(a) is often the better fit; if it is primarily real estate, 504 is typically the stronger structure.
How much do I need for a down payment or equity injection on an SBA loan?
SBA loans are one of the lowest down-payment paths into owner-occupied commercial real estate. Established businesses can often qualify with an equity injection as low as 10%, financing up to 90% of the project. Startups or special-use properties may require a larger injection of 15–20%. Putting less down lets an owner preserve working capital for operating and growing the business.
What is the minimum SBA loan amount at Cressida Direct?
Cressida Direct's SBA financing starts at a $500,000 minimum loan amount, and this applies across both the SBA 7(a) and SBA 504 programs. SBA loans are best suited to owner-occupied commercial real estate purchases, construction, and refinances at or above that threshold.
How long does SBA loan approval take?
SBA loans typically close in 60–90 days. The process involves lender underwriting, SBA review of the guaranty, and — on a 504 loan — coordination with a Certified Development Company alongside the first-mortgage lender, plus appraisal and title work. Delivering complete, accurate financials up front is the best way to stay on schedule, and Cressida Direct's dedicated SBA team manages the file end to end to keep your deal on track.

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Borrower Types

Business Owner
Corporation
Partnership

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PROGRAM RESOURCES

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