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SBA Lending

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Which SBA Loan is Right for Your Business?

With Small Business Administration (SBA) loans, your business has options to grow. The SBA 7(a) and SBA 504 programs each offer unique advantages to help you finance what’s ahead. This side-by-side comparison makes it easier to see which loan may be the right fit for your goals. At Highpoint Community Bank, our experienced lenders are here to guide you every step of the way. Contact us today to find the right solution for your business.

SBA 7(a) Loan Program
Best For
  • Versatile, all-purpose financing (short-term and long-term needs)
Loan Structure
  • 80% – 90% bank loan (maximum)
  • 10% – 20% down payment (minimum)
SBA Guarantee
  • Loans with maturities greater than 12 months; up to 75% guarantee
  • Loans with maturities less than 12 months; up to 75% guarantee
Interest Rates
  • Fixed, Variable or combination
  • Fully amortized – no Balloon
Loan Term
  • Real Estate — up to 25 years
  • Real Estate improvements — up to 25 years
  • Equipment — up to 15 years
  • Leaseholds — up to 10 years
  • Working Capital — up to 7 years
Loan Proceeds Use
  • Purchase land & building
  • Construction, renovations, or leasehold improvements
  • Furniture and fixtures
  • Machinery and equipment
  • Inventory and working capital
SBA 504 Loan Program
Best For
  • Real estate or major fixed assets with stable, predictable payments
Loan Structure
  • 50% bank loan
  • 30% – 40% SBA loan
  • 10% – 20% down payment
SBA Guarantee
  • Not Applicable
Interest Rates
  • Fixed or Variable on bank loan
  • Fixed on the SBA loan
  • Rate negotiated on bank loan rates
  • Rate on SBA portion set monthly at the time of debenture funding
Loan Term

SBA Loan:

  • Real Estate – 20 years
  • Equipment – 10 years

Bank Loan:

  • Real Estate – 10 years
  • Equipment – 7 years
Loan Proceeds Use
  • Purchase existing building
  • Land Acquisition and Construction
  • Expansion of existing building
  • Building improvements
  • Equipment (no rolling stock)

Ready to Explore Your SBA Loan Options?

Every business has unique needs. Our lenders are here to walk you through your loan options and help you find the right fit for your goals.

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