SBA 504 vs 7a — what's the difference?
504 is for real estate and heavy equipment. Two loans stacked: a bank first (50%) + a CDC second (40%) + your 10% down. Long-term fixed rate, no balloon. 7a is more flexible — real estate, working capital, business acquisition — typically 90% LTV, often variable. For buying a building you'll occupy, 504 usually wins.
What's "owner-occupied" mean?
Your operating business occupies at least 51% of the rentable square footage of the building (60% for new construction). The other 49% can be tenants generating rent — that income helps you qualify. Under 51% = it's investment property, not owner-user, and SBA won't apply.
How much do I really need to put down?
SBA 504: as low as 10% for existing buildings + established business. 15% if you're a startup OR special-use (restaurant, hotel, gas station). 20% if you're both. SBA 7a: usually 10%. Conventional CRE: 25–30%. We tell you the exact number for your scenario.
Can my business be brand new?
Yes — SBA loves owner-users, even new ones. Brand-new businesses usually need 15% down instead of 10% and stronger personal financials. We've closed startups; we've closed 20-year operators. Both can work.
Does my personal credit matter?
Yes. Sub-650 is tough but not impossible — depends on cash flow and down payment. 680+ opens most doors. 720+ gets you the best pricing and fewer overlays. We'll be honest about where you stand.
How long does SBA approval take?
From complete application to closing: 45–90 days is typical. Our fast deals close in 45 days when the borrower has docs ready. We'll send you a one-page doc checklist on the call so you can get organized fast.
I'm a Latino-owned business — special programs?
SBA itself doesn't carve out by ethnicity, but Miami has CDCs and minority-focused lenders with strong programs (SBA Community Advantage, state of FL programs, City of Miami partnerships). We know which lenders are most responsive — and yes, we speak Spanish.
Can I refinance an existing mortgage with SBA?
Yes — SBA 504 refi exists and we use it. You can refi an existing CRE loan, cash out for business needs, and lock long-term fixed. Restrictions apply (use of proceeds, age of debt, owner-occupancy). We'll tell you in the quick-qual if it fits.
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