Owner-occupied commercial real estate financing backed by the Small Business
Administration — as little as 10% down, up to 25-year amortization, and competitive fixed or
variable rates through SBA 7(a) and SBA 504 programs.
$5.5M
Max Loan Amount
10%
Minimum Down
25 Yr
Max Amortization
90%
Max LTV
What Are SBA Commercial Loans?
The Small Business Administration (SBA) was established in 1953 as an
independent federal agency to protect the interests of small businesses and strengthen the
American economy. The SBA does not lend money directly — instead, it guarantees a
portion of loans made by approved private-sector lenders. This guarantee
reduces lender risk and enables terms that are not otherwise available in the conventional
market.
For commercial real estate borrowers, SBA loans offer a compelling alternative
to conventional financing: lower down payments (as low as 10%),
longer amortization (up to 25 years), more flexible
underwriting, and access to fixed-rate structures. All SBA programs are
available nationwide, and the SBA provides special advantages for women-owned and
minority-owned businesses.
SBA vs. Conventional Commercial Loans
Lower Down Payment
As low as 10% down with SBA 504 — vs. 20–35% required by most conventional commercial
lenders.
Longer Amortization
Up to 25 years fully amortizing — no balloon payment — significantly reducing monthly
cash obligations.
Flexible Underwriting
SBA programs qualify at lower DSCR thresholds and can accommodate businesses with
limited operating history.
Fixed-Rate Option
SBA 504 offers a fully fixed rate on the CDC debenture portion — rare and valuable
for long-term commercial financing.
SBA 504 Loan Rates
Term
Fixed Rate - Purchase**
Fixed Rate - Refinance**
Max LTV*
Max Amortization
10 Years
5.88% - 5.88%
5.88% - 5.88%
90% - Owner-Occupied
10 Years
20 Years
6.01% - 6.01%
6.02% - 6.02%
90% - Owner-Occupied
20 Years
25 Years
5.95% - 5.95%
5.95% - 5.95%
90% - Owner-Occupied
25 Years
SBA 7(a) Loan Rates
Term
Fixed Rate - Purchase*
Floating Rate - Purchase
Max LTV*
Max Amortization
10 Years
5.75% - 8.75%
N/A
85% - Owner-Occupied
25 Years
20 Years
6.25% - 8.75%
6.25% - 8.75%
85% - Owner-Occupied
20 Years
SBA Express Loan Rates
Current commercial loan rates for SBA Express Loans are 6.750% - 8.75%
SBA Loan Programs at a Glance
Commercial Loan Direct offers three SBA loan programs. Each serves different financing objectives
— choosing the right structure for your transaction is the first critical step.
Select a program to review loan amounts, eligibility, use of proceeds, repayment terms, and the
application checklist.
SBA 7(a) — General Small Business Loans
The most widely used SBA program, eligibility is based on the business and its principals
rather than a specific asset class. It offers the broadest flexibility in use of
proceeds of any SBA program.
SBA 7(a) Loan Parameters
Maximum Loan Amount
$5,000,000
SBA Guarantee
Up to 85% (loans ≤ $150,000) / Up to 75% (loans > $150,000)
Borrower Down Payment
Typically 10–15% for owner-occupied commercial real estate
The SBA 504 program provides long-term, fixed-rate financing for major fixed assets —
primarily owner-occupied commercial real estate and heavy equipment. The loan is a
three-party structure involving a private bank, a Certified Development Company (CDC),
and the borrower.
The 504 Loan Structure: Who Funds What
50%
Bank / Private Lender
First mortgage, variable or
fixed
40%
CDC / SBA Debenture
Fixed rate, second lien
10%
Borrower Equity
Down payment (most projects)
SBA 504 Loan Parameters
Max CDC Debenture
$5,000,000 (most businesses); $5,500,000 (manufacturers / green energy
projects)
Total Project Size
No maximum — the bank portion (50%) is uncapped by the SBA
SBA Express is a streamlined subset of the SBA 7(a) program designed for speed. The SBA
commits to a 36-hour decision turnaround — compared to 5–10 business
days for standard 7(a) processing. The trade-off is a lower guarantee percentage and a
lower maximum loan amount.
SBA Express Loan Parameters
Maximum Loan Amount
$500,000
SBA Guarantee
50% (compared to 75–85% for standard SBA 7(a))
SBA Decision Time
36 hours from complete submission
Interest Rate
Variable or fixed; same rate rules as standard SBA 7(a)
Maximum Loan Term
Up to 25 years (real estate); 10 years (equipment / working capital)
Down Payment
Lender-determined; typically 10–20%
Underwriting Forms
Lender uses own forms — faster processing
Revolving Lines of Credit
Permitted (up to 7-year maturity)
Eligibility & Use of Proceeds
Same general eligibility as standard SBA
7(a)
Same eligible uses: real estate, equipment,
working capital, business acquisitions
Revolving lines of credit are permitted —
up to 7-year maturity
Best suited for transactions under $500,000
where speed is the priority
SBA commercial real estate loans amortize
up to 25 years — fully amortizing with no balloon payment.
Equipment loans: up to 10 years. Working capital: up to 10 years. Actual terms
depend on the program and the underwriting guidelines of the partner lender.
Recourse & Personal Guaranty
SBA loans are always full
recourse. A personal guaranty is required from all owners with ≥ 20%
ownership interest. Guarantors are personally liable for any deficiency between the
outstanding loan balance and sale proceeds upon default, including all legal and
ancillary costs.
Prepayment Penalty
Prepayment structures vary by program and lender. SBA 7(a)
loans ≥ 15-year maturity: 3-2-1 declining schedule over the first 3
years. SBA 504 debentures: a 10-year declining schedule
(10-9-8-7-6-5-4-3-2-1%). Use our SBA 504 prepayment
calculator to estimate your penalty.
Special Program Advantages
The SBA provides special advantages for
women-owned and minority-owned businesses,
including reduced fees and dedicated assistance programs. Veterans
may qualify for reduced or waived SBA guarantee fees through the Veterans Advantage
program.
Nationwide Availability
SBA loan programs are available in
all 50 states and US territories. Commercial Loan Direct works with
SBA-preferred lenders and Certified Development Companies (CDCs) nationwide to match
your transaction with the most appropriate lender.
Loan Servicing
SBA 504 loans are typically serviced by
the CDC. The Master Servicer manages day-to-day functions: payment collection,
escrow, financial statement analysis, and collateral monitoring. Non-performing
loans transfer to a special servicer for workout and, if necessary, foreclosure
proceedings.
How to Get an SBA Loan with Commercial Loan Direct
The SBA loan process involves more steps than conventional commercial financing — but Commercial
Loan Direct guides you through every stage. Here is what to expect from inquiry to funding:
1
Initial Consultation & Pre-Qualification
Submit a quote request online or call our team. We review your project details,
property type, use of proceeds, and financial profile to determine which SBA program
— 7(a), 504, or Express — best fits your needs. Pre-qualification is fast, free, and
carries no obligation.
2
Program Selection & Lender Matching
We match your transaction to the right SBA-approved lender or Certified Development
Company from our national network. For SBA 504, we coordinate between the bank and
CDC on your behalf. Different lenders have different underwriting appetites —
getting this match right improves approval odds and accelerates the process.
3
Document Preparation & Application Assembly
We provide a customized document checklist and help you organize the required tax
returns, financial statements, business plan, purchase agreements, and SBA forms.
Complete, well-structured packages move through underwriting faster with fewer
conditions.
4
Lender Underwriting & SBA Submission
Your lender underwrites the package and — once satisfied — submits to the SBA for
guarantee authorization. SBA Express decisions arrive within 36 hours. Standard 7(a)
and 504 typically require 5–21 business days for SBA review, depending on program
volume and completeness of the submission.
5
Commitment Letter & Conditions Clearance
Once approved, the lender issues a commitment letter with final terms and any
outstanding conditions. We review this with you to ensure the terms are accurate and
that all conditions are achievable on your timeline.
6
Closing & Funding
Loan documents are prepared by lender's counsel. You attend closing (or sign remotely
where permitted), clear any remaining conditions, and the loan funds. For SBA 504,
the bank loan typically closes first, followed by the CDC debenture sale — a process
that may add a few additional weeks to the total timeline.
Why Choose Commercial Loan Direct for Your SBA Loan?
Navigating SBA lending requires expertise in the government program requirements and the
specific preferences of individual SBA lenders. Commercial Loan Direct brings both — along with
a national lender network that ensures your transaction is matched with the right source from
day one.
National Lender Network
Access to hundreds of SBA-preferred lenders and CDCs across all 50 states — not just a
single bank's products or appetite.
SBA Program Specialists
Our team understands the nuances of 7(a) vs. 504 vs. Express — helping you avoid
mismatches that restart the process from scratch.
Application Guidance
We help assemble complete, organized packages that move through underwriting faster and
with fewer conditions — improving your odds of approval.
Competitive Terms
We negotiate on your behalf across multiple lenders to ensure you receive the best
available SBA loan terms for your specific transaction.
Dedicated Loan Officers
A single point of contact managing your transaction from inquiry through funding — no
being passed between departments or call centers.
All Commercial Property Types
Office, retail, industrial, medical, hospitality, self-storage, mixed-use, and
special-use properties — we've financed them all through SBA programs.
Ready to Explore Your SBA Loan Options?
Get a free, no-obligation quote. Our SBA specialists will identify the right program and
lender for your transaction — and walk you through every step.
SBA 7(a) is the most flexible program — it can be used for real estate, equipment,
working capital, or business acquisitions up to $5 million. SBA 504 is specifically
designed for fixed assets (commercial real estate and major equipment), structured
as a three-party deal where the bank funds 50%, the CDC/SBA provides 40% at a
long-term fixed rate, and the borrower contributes 10% down. SBA 504 is typically
preferred for larger real estate purchases where a fixed rate on the CDC portion is
valuable; 7(a) is better when you need flexibility in use of proceeds or want a
single-lender relationship.
No. SBA loan programs are designed for owner-occupied commercial real estate. The
borrower's business must occupy at least 51% of an existing building or 60% of new
construction. Purely investment properties — where tenants occupy the entire
building and the borrower operates no business on-site — do not qualify. For
investment property financing, see our conventional commercial loan programs.
The SBA does not set a hard minimum credit score, but most SBA lenders require a
personal FICO score of at least 650, with 680–700+ preferred for the strongest
approvals. Scores below 650 significantly limit your lender options. Recent negative
credit events — foreclosures, bankruptcies, judgments, or federal tax liens — within
the past 3 years are typically disqualifying for most SBA programs.
SBA Express loans receive an SBA decision within 36 hours of submission. Standard
SBA 7(a) loans typically take 30–75 days from complete application to funding,
depending on lender processing time and SBA review volume. SBA 504 loans often take
60–90 days due to the three-party closing structure (bank loan closing + CDC
debenture sale). Timelines improve significantly with well-organized, complete
applications submitted through an experienced lender.
Yes. All SBA loan programs are open to minority and women-owned businesses.
Additionally, the SBA's 8(a) Business Development Program is
specifically designed to assist socially and economically disadvantaged small
businesses with access to capital, contracting, and technical assistance. Veterans
may qualify for reduced or waived guarantee fees through the Veterans
Advantage program. Many participating lenders also offer dedicated
initiatives for underrepresented borrowers.
The SBA charges a guarantee fee to the lender, which is typically passed to the
borrower. The fee is based on the guaranteed portion of the loan and its maturity.
For loans ≤ $150,000, the fee is often zero or reduced. For loans > $150,000 with
maturities > 12 months, the fee ranges from approximately 0.25% to 3.75% of the
guaranteed portion. Fee schedules change annually — your loan officer will confirm
the current rates at the time of application.
Note: The commercial mortgage calculators
displayed in this website should be used as a guideline and do not represent a commitment to lend.
Commercial Loan Direct and CLD Financial, LLC are not liable for any calculation errors resulting from
the use of these calculators.
Bakersfield, CA Luxury Multifamily Non-Recourse · 10-Yr I/O
I had a tremendously good experience with CLD and especially with my loan specialist — she identified the ideal loan program and handled everything professionally.
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SBA 7(a)
CMBS
Conventional