Don’t get disappointed or discouraged if the bank turned you down. Our experience shows that 90% of our loan approvals were prior SBA bank loan turn-downs!
SBA 504 vs 7a Loan Comparison:
If you’re looking for a small business loan to purchase real estate or heavy machinery/equipment, the SBA 504 loan is the best choice.
If purchasing a business or getting working capital is the goal, then the SBA 7a loan is likely the better option.
More explicitly, in the SBA 504 loan proceeds can be used to purchase a building, finance ground-up construction or building improvements, or purchase heavy machinery equipment, while the 7a loan proceeds can be used for short-term or long-term working capital and to purchase an existing business, refinance existing business debt, or purchase furniture, fixtures and supplies.