SBA Loans for Entrepreneurs: 7(a) and 504 Financing with T Bank

The key difference is the government guarantee. With an SBA loan, the U.S. Small Business Administration guarantees a portion of the loan, which reduces the risk for the lender. This allows banks like T Bank to offer more flexible terms, such as longer repayment periods and lower down payments, than are typically available with conventional loans.

SBA 7(a) loans often have variable rates tied to Prime, while SBA 504 loans include a fixed-rate CDC portion plus a bank rate. At T Bank, we’ll show you a competitive range upfront and lock terms as soon as underwriting is complete.

Most SBA loans require around 10% equity, but structure matters. Seller financing, partial real estate, or outside collateral can reduce cash outlay. SBA 504 loans often require less equity than conventional loans.

With a complete file, approvals typically take 5-10 business days and closings average 60 days. Real estate deals or CDC coordination may extend that timeline, but as an SBA Preferred Lender, T Bank gives you a realistic closing date from day one.

No. We evaluate each loan holistically, not by industry type. We’ve financed restaurants, medical and dental practices, trucking companies, franchises, service businesses, and more nationwide.

Preferred Lender status means the SBA allows us to approve loans in-house. That cuts weeks off the process and improves certainty of closing. With delegated authority and deep SBA expertise, we make SBA loans smoother and faster.

Yes. Many business owners use SBA 7(a) loans to refinance higher-interest debt into a single, more manageable payment. An SBA 7(a) loan can consolidate existing loans, reduce monthly obligations, or free up working capital. SBA 504 loans may also be used to refinance eligible commercial real estate debt. At T Bank, we review your full situation to structure refinancing that lowers costs and supports growth.

Yes. SBA 7(a) loans are commonly used to finance franchise purchases and expansions. The program allows qualified buyers to cover startup costs, working capital, equipment, and leasehold improvements with up to 90% financing. At T Bank, our SBA team has experience with multiple franchise brands and can guide you through the approval process.