504 vs. 7(a) Fees & Loss Protection
When it comes to SBA lending there are no one size fits all solutions. With a variety of special programs to address targeted industries and underserved populations, it is even more important to know all of your options.
The two largest SBA programs are the 7(a) program offered by many banks and the SBA 504 Program delivered through a Certified Development Company (WBD) in partnership with a local lender.
At WBD we are experts in both programs and can make sure you take advantage of the one that fits you best.
While there are many factors to consider, limiting fees for borrowers is a priority for WBD and as the chart below shows, for larger projects (above $275,000) the 504 program can save borrowers considerable fees.
It’s not that one loan type is always better; it’s just that you deserve to know all of your options. If your local banker is talking to you about a 7(a) loan, make sure to ask them to compare fees and total costs to the 504 program too. If they won’t, give us a call or visit with a banker who will give you all of your options.
For a list of lenders experienced with the 504 Program click here.