Both are SBA loans, but they're built for different jobs. Picking the right one saves time and money.
The short version
- ✓7(a) is flexible — working capital, acquisition, refinance, real estate.
- ✓504 is purpose-built for real estate and major fixed assets.
- ✓504 often means lower, fixed long-term rates on the CDC portion.
Choose 7(a) when…
You need flexibility — working capital, buying a business, refinancing debt, or a mix of uses up to $5M. It's the most versatile SBA program.
Choose 504 when…
You're buying, building, or renovating owner-occupied commercial real estate, or financing large equipment with a long useful life. The structure offers low down payments and long fixed rates.
Still unsure?
Many growth plans use both over time. We'll map your goal to the right program before you apply.
QF
Written by the Qualify Finance Team
We help small business owners understand funding options, strengthen their profile, and get matched to the right lender — across every credit profile.