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SBA Loans — Wellesley Collective

Commercial Financing

SBA Loans SBA

Government-backed financing options for small businesses.

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Who this is for

Small businesses buying the building they will occupy · Owners financing equipment or an acquisition · Companies that need longer terms than a conventional short loan · Borrowers who can document the business and the use of funds

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SBA loans are regular business loans with a government guarantee behind part of them. That guarantee is what helps qualified small businesses get longer terms or lower down payments than they might get on a conventional loan.

How it works

The two workhorses are 7(a) and 504. 7(a) is the flexible one — working capital, equipment, certain acquisitions, and some real estate. 504 is the real-estate and long-life-equipment program for owner-occupied buildings, often with a small down payment and a long amortization. You still have to qualify. The SBA does not hand out grants here. We walk through eligibility, use of proceeds, occupancy rules, and the paperwork so you are not surprised at credit. If SBA is the wrong tool, we say so and look at a conventional structure.

Who this is for

  • Small businesses buying the building they will occupy
  • Owners financing equipment or an acquisition
  • Companies that need longer terms than a conventional short loan
  • Borrowers who can document the business and the use of funds

What it typically covers

  • Owner-occupied real estate (especially 504)
  • Equipment and working capital (especially 7(a))
  • Selected business acquisitions
  • Government-backed terms for eligible small businesses

A simple example

A medical practice wants to buy its office building instead of renting. An SBA 504 structure can finance most of the purchase, keep the down payment manageable, and leave working capital in the practice.

Good to know

  • Owner-occupancy rules are real. You generally cannot use 504 to buy a purely investment building.
  • Documentation is heavier than a simple term loan. Completeness speeds the file more than anything else.

Coverage, eligibility, and terms vary by location and underwriting.

Guides

Read this before you quote or apply.

Guide

What a lender reviews on an SBA 7(a) or 504 file

Use of proceeds, occupancy, cash flow, and the documents that keep an SBA file moving after SBSS scoring went away.

Read guide

Guide

Bridge loan vs. permanent CRE financing

When speed is the product, when a 10-year mortgage is the product, and what a clean exit looks like.

Read guide