How it works
The Small Business Administration guarantees portions of eligible loans made by participating lenders. Different SBA programs serve different purposes. The 7(a) program covers a range of eligible business uses, while 504 is focused on qualifying major fixed assets.
Picture this
An established business plans to purchase a building it will occupy. Depending on its eligibility, timing, and project details, an SBA program may be one path to compare with conventional financing.
Example only. The right product depends on your business and the terms offered.
When it may be worth exploring
- A significant planned investment with a documented use of funds
- A business able to provide financial statements and other lender-requested records
- A timeline that allows for lender review and program requirements
What to compare in an offer
- Which SBA program and participating lender are actually involved
- Eligibility, permitted use, required documentation, and potential equity contribution
- Rate structure, fees, collateral, guarantees, and total repayment cost
- Realistic closing timeline for this specific transaction
Common questions
Does the SBA lend directly to my business?
For programs such as 7(a), participating lenders make the loans and the SBA provides a guarantee. The lender and program determine the review process.
Are SBA loans only for real estate?
No. The 7(a) program allows several eligible uses. The 504 program focuses on qualifying fixed assets such as buildings and certain long-term equipment.
Does an SBA guarantee mean approval is automatic?
No. The business must meet program and lender requirements, and the lender makes its credit decision.
For current program rules, see the SBA 7(a) overview and SBA 504 overview.
This page is general information, not an offer or approval. Products, eligibility, rates, fees, and terms vary by lender and applicant. Altora Capital Group is an independent referral partner of ROK Financial.