SBA 7(a) vs. SBA 504 Commercial Loan Battle Solver

Compare the two premier government-backed commercial loan programs. Evaluates 25-year fixed CDC debentures (SBA 504) vs. floating SBA 7(a) debt.

Commercial Project Parameters

Total Commercial Real Estate / Project Cost ($)

Down Payment Equity (%)

FLOATING RATE

Single loan facility. High flexibility for goodwill and working capital, but carries floating Prime + 2.50% interest.

Interest Rate (Prime + Spread)

Term (Years)

Monthly Debt Service

$15,280 / mo

25-Yr Total Interest: $2,964,000

🏆 LOWEST LIFETIME INTEREST

50/40/10 FIXED STRUCTURE

Split structure: 50% Bank 1st Lien + 40% CDC 2nd Lien (25-Yr Fixed Debenture) + 10% Cash Down.

Bank 1st Lien Rate (50%)

CDC 2nd Lien Fixed (40%)

Blended Monthly Debt Service

$11,340 / mo

25-Yr Total Interest: $1,782,000