May 6, 2021
When it comes to financing, the Small Business Administration (SBA) offers a range of loan programs designed to support small businesses in various stages of growth. Understanding which SBA loan program best fits your business needs can be the key to unlocking growth and operational success. In this guide, we delve into the two primary SBA loan programs—the 7(a) and the Certified Development Company (“CDC”)/504—to help you make an informed decision.
The CDC/504 loan program is designed to assist small businesses with purchasing major fixed assets, such as equipment and owner-occupied commercial real estate. Key features include:
The CDC/504 program is ideal for businesses looking to invest in long-term assets without the burden of high collateral requirements and variable interest rates.
The SBA 7(a) loan program is the most versatile SBA loan, offering funding for a broad range of business needs. Key features include:
The 7(a) program is well-suited for businesses needing flexible funding options for various operational and growth needs, although it may come with higher collateral requirements and fees.
Choosing between the CDC/504 and 7(a) programs depends on your specific financial needs and business goals:
Ultimately, the best choice depends on your business’s financial situation and growth objectives. Research your options thoroughly and consult with your bank’s loan officer to determine which SBA loan program aligns with your needs.
SBA loans are designed to help your small business thrive with the right financial support. Understanding these loan programs can empower you to make the best choice for your business’s future.
Choosing the right SBA loan is a critical step in ensuring your business’s financial health and long-term success. At Infinity Commercial Capital, we specialize in guiding small business owners through the complexities of SBA loan programs. Our team of experts will work with you to evaluate your specific needs, helping you secure the financing that best aligns with your goals. Whether you’re looking to invest in real estate, purchase equipment, or cover operational expenses, we provide tailored solutions to support your growth. Contact us today to explore how we can help you leverage SBA loans for your business’s success.