SBA 7a & SBA 504 Loan Programs

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Flexible, Government-Backed Financing for Growing Businesses

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At Sovereign Commerciak Capital, LLC, we help business owners acciss the nations's  most trusted small-business financing programs: the SBA 7(a) and SBA 504 loan programs. These government-guaranteed loans offer competitive terms, lower equity requirements, and expanded eligibility,- making them ideal for entrepreneurs who need affordable capital to grow, acquire, or expand their operations.

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Our role as a national loan correspondent is simple: we streamline the prodcess, eliminate friction, and guide you from application to closing with a truly hassle-free experience.

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SBA 7(a) Loan Program

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The SBA's Primary and Most Flexible Loan Option

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The SBA 7(a) loan is the most widely used SBA program, designed to help small businesses secure financing when conventional loans fall short. The SBA guarantees up to 75-85% of the loan, reducing lender rusk and enablinb more favorable terms.

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Key Features

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• Loan Amounts: up to $5 million

• Use of Funds:

  • Real estate acquisitions or improvement

  • Working capital

  • Equipment purchases

  • Business acquisition or partner buyouts

  • refinancing elibible business debt

  • Multi-purpose loans combining several uses

• Terms:

  • Up to 25 years for real estate

  • Up to 10 years for working capital and equipment

• Interest Rates: Competitive, tied to Prime or SOFR, with SBA-regulated caps.

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Eligibility Snapshot

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To qualify, a business must:

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• Operate for profit in the U.S.

• Meet SBA size standards

• Demonstrate creditworthiness and repayment ability

• Show that credit is not available on reasonable terms elsewhere ("credit elsewhere" test)

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Who Uses SBA 7(a)?

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This program is ideal for:

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• Service businesses expanding operations

• Retailers needing working capital

• Contrators purchasing equipment

• Entrepreneurs refinancing high-cost debt

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SBA 504 Loan Program

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Long-Term, Fixed-Rate Financing for Major Fixed Assets

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The SBA 504 loan is designed for businesses investing in long-term asses that promote growth and job creation. Financing is delevered through a three-party structure:

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• 50%-Bank or private lender

• 40% SBA-backed CDC debenture

• 10%-Borrower equity (may increase to 15-20% for startups or special-purpose properties)

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Key Feature

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• Loan Amounts:

  • Up to $5.5 million on the SBA-guaranteed portion (total project cost can exceed $13 million

• Use of Funds:

  • Purchase or construction of commercial real estate

  • Acquisition of long-life machinery or equipment

  • Facility expansion or modernization

  • Certain types of debt refinancing ( if SBA-qualified)

• ​Terms:

  • 10, 20, or 25-year fixed rates on the CDC portion

• Occupancy Rrequirements:

  • 51% for existing buildings

  • 60% for new construction

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Eligibility Snapshot

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A business must:

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• Operate for a profit in the U.S.

• Have a tangible net worth under $20 million

• Have average after-tax income under $6.5 million for the past two years

• Meet job-creation or public-policy goals (e.g., job pr $75K-$90K of SBA funding)

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Who Uses SBA 504?

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This program is ideal for:

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• Manufacturers purchasing heavy equipment

• Professional firms buying office buildings

• Logistics companies expanding warehouses

• Owner-operators seeking long-term, fixed-rate real estate financing

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Sovereign's Hassle-Free Advantage

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At Sovereign Commercial Capital, LLC, we simplify the SBA process by:

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• Pre-qualifying borrowers quickly

• Packaging applications to SBA-ready standards

• Coordinating with banks, CDCs, and underwriting teams

• Managing documentation and communication end-to-end

• Ensuring borrowers understand every step-without being overwhelmed

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Our mission is to deliver clarity, speed, and confidence so business owners can focus on growth- not paperwork.

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Ready to Explore SBA Financing?

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Whether you're acquiring a building, expanding operations, purchasing equipment, or strengthening working capital, Sovereign is here to guide you.

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