SBA Loans

Whether your goal is to acquire, construct, or expand commercial real estate for your business, or meet other financial goals, we have the expertise and reliability to deliver.

SBA commercial real estate loans

Broad Eligibility

The Small Business Administration (SBA) serves as the main resource for government-backed business loans. Because a portion of an SBA loan is guaranteed by the government, these loans allow small business owners to obtain capital with less equity than a conventional loan requires.

SBA 504 Loan vs. SBA 7(a) Loan

At-A-Glance Comparison




Loan Size

• Minimum – $125,000

• Maximum – $20 million +

• Minimum – $125,000
• Maximum – $20 million +
Interest Rate• Predominantly variable rates• Fixed Rate

• Up to 25 years: Real Estate

• Up to 10 years: Business acquisition

• 5 to 7 years: Working capital

• Weighted average for mixed-use

• 25 years: Real Estate

• 20 years: Real Estate

• 10 years: Equipment

Down Payment • Minimum 10% equity injection• 10% Borrower equity injection

Discuss your needs with an expert

Detailed Comparison of SBA 504 & SBA 7(a) Loan


SBA 504 Loan

  • Commercial Real Estate and Equipment

  • 90% Fixed Rate

SBA 7(a) Loan

  • General Purpose
Loan Size
  • $250,000 to $5,000,000
  • $250,000 to $5,000,000
Interest Rate
  • Fixed

  • Fully amortized through the term of the loan

  • Interest rates on 504 loans are set monthly at the time of funding at an increment above the current market rate for five-year and ten-year U.S. treasury issues

  • Variable rate; some limited fixed-rate options

  • Fully amortized through the term of the loan

  • Interest rates are negotiated between the borrower and the lender subject to a mandated SBA ceiling and floor

Eligible Business Size
  • Business net worth not to exceed $15 million

  • Average net profit after taxes for 2 consecutive years not to exceed $5 million

  • Determined by industry type

  • Annual sales not to exceed range of $750,000 to $33.5 million for retail, service and agriculture

  • Number of employees not to exceed range of 100 to 1,000 for wholesale and manufacturing

Terms and Available Amortization Periods
  • 25 years fully amortized – real estate loan

  • 20 years fully amortized – real estate loan

  • 10 years fully amortized – equipment loan

  • No balloon payments

  • Up to 25 years – real estate

  • Up to 10 years – equipment, business acquisition

  • 5 to 7 years – working capital

  • All loans are fully amortized

  • No balloon payments

Loan Structure
  • 50% bank loan

  • 40% CDC loan

  • 10% borrower down payment

  • Loan structure negotiable; dependent on risk

  • 10% down payment (minimum)

Loan Purchase
  • Purchase existing building

  • Land acquisition and ground up construction (includes soft cost development fees)

  • Expansion of existing building

  • Finance building improvements

  • Purchase equipment


  • Expand, acquire or start a business

  • Purchase or construct real estate

  • Refinance existing business debt

  • Buy equipment

  • Provide working capital

  • Construct leasehold improvements

  • Purchase inventory

Loan Program Requirements
  • 51% owner occupancy required for existing building

  • 60% owner occupancy required for new construction

  • Equipment with a minimum 10 year economic life

  • 51% owner occupancy required for existing building

  • 60% owner occupancy required for new construction

  • All assets financed must be used to the direct benefit of the business

  • Generally, the project assets being financed are used as collateral

  • Personal guaranties of the principal owners of 20% or more ownership are required

  • Collateral is the subject assets acquired by loan proceeds

  • Requires pledge of personal residence unless bank can justify why unnecessary

  • Personal guaranties of the principal owners of 20% or more ownership are required

Loan Fees
  • Fees are financed in the 504 loan

  • Fees are negotiated for the 50% bank loan

  • Servicing fee (lowest allowed by SBA) for CDC 504 plus a legal review fee

  • Fees can be financed in the 7(a) loan

  • Fees vary with the size of the loan accompanying the 504 loan

  • An additional .25% is charged on any loan portion above $1 million

Streamlined SBA loan process

Government Guaranteed Loans provided through the Small Business Administration (SBA) and the United States Department of Agriculture (USDA) are a time-tested and affordable way to fund the growth of new and established businesses. Working with INSIGNIA Financial Services, you can rest assured your financing is being handled by professionals with a demonstrated track record of working with small business lending, proficiency in underwriting and servicing standards, and a commitment to serving small business owners.

We work closely with every client, carefully reviewing their financing needs to determine the best source and type of financing for their objectives. We patiently guide our clients through the lending process, from the application process to funding of the loan and beyond. 

SBA 504

SBA 504 Loan Program

The SBA 504 Loan Program provides growing businesses with long-term, fixed-rate financing for major purchases such as commercial real estate and heavy machinery & equipment. This program is designed for small businesses requiring commercial mortgage financing and is facilitated through Certified Development Companies (CDCs). We work closely with CDCs and the SBA to provide financing with a low minimum equity contribution, allowing for the conservation of working capital.

SBA 7(a) Loans

SBA 7(a) Loan Program

The SBA 7(a) Program provides guaranteed financing for a variety of business purposes. The specific business-related expenses covered include working capital, machinery & equipment, furniture & fixtures, land & buildings (including purchase, renovation and new construction), leasehold improvements, and qualified debt refinancing. The SBA 7(a) Program will also help preserve working capital as a result of low down payment requirements.

medical practice financing

Healthcare Property Financing

Our Healthcare finance platform offers permanent, non-recourse, assisted living, memory care and intermediate/ skilled nursing facility loans that are designed to give you more of what you need — lower equity requirements and a flexible lending program that meets your unique financing goals. in addition to SBA guaranteed loans, HUD/FHA and USDA guaranteed loans are available for eligible transactions.

SBA franchise financing

Franchise Financing

We offer the franchise financing that helps entrepreneurs succeed. We are focused on the needs and challenges of both new and existing franchisees and provide fast financing for everything from new stores to business acquisition. While the process of applying for franchise financing can be detailed and somewhat overwhelming, our lending specialists provide the expertise and guidance that will make the entire experience a smooth and efficient one.

medical practice financing

Medical Practice Financing

Our lending team consists of specialists who are adept at supporting medical professionals in need of customized medical practice financing solutions. We work closely with you to review your needs - whether it’s to start a practice, refinance a practice, expand or relocate, acquire a new practice or finance major equipment for a practice. Then we will develop a customized solution, and assist you through every step of your loan application. Click here for additional information.

What are the requirements?

In general, SBA loans are designed for project amounts up to $20MM. SBA loans can include acquisition of commercial real estate, renovation of the commercial real estate, new construction, and/or heavy equipment. SBA loans typically involve a first lien on the commercial property a down payment contribution, commonly referred to as an “equity injection”, typically of 10%, from the Borrower. SBA loans for commercial real estate properties require a minimum of 51% owner-occupancy. INSIGNIA Financial Services offers exceptional customer service allowing for 24-hour pre-approvals and quick closings – often within 60 days.

Eligible Borrowers

  • For-profit, non-publicly traded businesses

  • Tangible business net worth (including affiliates) not to exceed $15MM

  • Average net income of the business not to exceed $5MM over the previous two years

  • Ownership must generally be comprised of 51% U.S. citizens or Legal Permanent Residents 

Examples of Property Types Financed
  • Medical offices or medical facilities (such as labs and clinics)

  • Office buildings (including office condos)

  • Warehouses (and other industrial properties)

  • Day care facilities (for children or adults)

  • Free-standing restaurants

  • Limited-service, flagged hotels (some unflagged destination hotels will be considered)

  • Auto repair shops

  • Self-storage facilities

  • Assisted-living facilities

  • Call to ask about many other property types that are eligible

Ineligible Borrowers
  • Non-profits (except sheltered workshops)

  • Passive holders of real estate and/or personal property

  • Lending institutions (mortgage brokers and correspondent lenders are eligible)

  • Life insurance companies (franchised agents are eligible)

  • Businesses located in a foreign country

  • Gambling concerns

  • Businesses which restrict patronage

  • Government owned entities (excluding Native American tribes)

  • Consumer and marketing cooperatives (producer cooperatives are eligible)

  • Businesses engaged in SBA loan packaging

  • Businesses that have previously defaulted on a Federal loan

  • Businesses engaged in political or lobbying activities

The lending professionals of INSIGNIA Financial Services have extensive experience originating, structuring, and closing SBA 7(a) and SBA 504 loans. We share an entrepreneurial spirit with our clients and understand the needs of small businesses and their owners. We work closely with our clients to provide the necessary capital to support the growth and prosperity or their business. 

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The team at INSIGNIA Financial Services is available to discuss your financing needs and answer any questions you may have.

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