SBA 7(a) vs 504 — Which One Is Your Deal?

7(a) is the flexible workhorse. 504 is fixed-rate money for buildings and heavy equipment. Picking wrong costs you years of payments.

Both are SBA programs, both are cheap by commercial standards, and choosing the wrong one can cost you years of payments. The distinction is simple: 7(a) is flexible general purpose money, 504 is fixed-rate money for fixed assets.

Choose 7(a) when

• Any part of the money is working capital, inventory or debt refinance.
• You are buying a business or a partner's shares.
• You want one loan and one closing rather than two coordinated pieces.
• You value flexibility over locking a fixed rate for 25 years.

Choose 504 when

• You are buying or building a property your business will occupy.
• You are buying long-life heavy equipment.
• A fixed rate for two decades is worth more to you than flexibility — for most owner-occupied real estate, it is.

The published guidelines in our network

SBA financing runs $50,000 to $5 million with terms from 10 to 25 years. The floor is 2+ years in business, at least $120,000 in annual gross sales, and a 675+ credit score. Approval decisions on the fast track can come back in 48–72 hours; funding takes 30–45 days.

What disqualifies people most often

Not the credit score — the paperwork stamina. Three years of returns, a personal financial statement per guarantor, interim financials and a clean debt schedule. Businesses that keep tidy books get SBA money; businesses that do not, do not, regardless of how profitable they are.

Program guidelines shown are our lending partners' published minimums as of September 2026 and can change. They are qualification floors, not an offer. Reviewed and maintained by the Goldspur Capital funding desk. This is general information about commercial finance products, not financial, legal or tax advice for your specific situation.