Compare Your Financing Options with More Clarity
Not all SBA loans are built the same.
If you are buying commercial real estate, equipment, or acquiring a business, choosing between an SBA 7(a) loan and an SBA 504 loan can have a major impact on your cash flow, down payment, long-term costs, and flexibility.
Use the calculator below to compare your options side by side and get a clearer picture of what may work best for your business.
How Much Could You Save With an SBA 504 Loan?
If your fixed-rate SBA 7(a) loan is secured by commercial real estate, you may be leaving significant money on the table. Enter your loan details below to see your potential savings.
The 504 CDC debenture rate is published monthly by the SBA. The bank 1st lien rate is estimated at Prime + 0.50% for a low-LTV conventional first mortgage. Adjust the CDC rate to reflect the current published rate.
CDC processing fees (~1.5% of CDC portion) and other closing costs are not included and will affect total cost of funds. These one-time costs are typically recovered within the first 12–18 months of payment savings. Actual rates vary by lender and market conditions.
Ready to explore your refinance options? Firepath Capital will walk you through the entire 504 process — from application to funding.
Start the conversation →Important Note
This calculator is intended for educational purposes only. Actual loan terms, rates, fees, eligibility, and down payment requirements vary based on lender guidelines, business financials, project type, and SBA program rules.
The best loan option depends on the full details of your transaction.
Powerful financing tools for small business owners, but they are designed differently.
What’s the Difference Between SBA 7(a) and SBA 504?
Whatever you're building, we're here to help you take the first step with confidence.
SBA 7a
The SBA 7(a) loan is often the more flexible option. It can be used for a wider variety of business purposes, including:
commercial real estate
business acquisition
partner buyouts
equipment
working capital
This option can be especially helpful when a deal has more moving parts or when flexibility matters most.
SBA 7(a) may be a better fit if:
You need flexibility in how funds are used
Your project includes business acquisition, goodwill, or working capital
Your deal is more complex
You want one loan structure covering multiple needs
Why This Comparison Matters
At FirePath, we believe structure matters more than chasing the lowest headline rate.
A better loan should help you:
protect liquidity
create manageable monthly payments
support growth
avoid getting boxed into the wrong financing structure
The calculator is a great starting point. But the strongest financing strategy comes from understanding the full picture of your business, your project, and your goals.
SBA 504
The SBA 504 loan is typically designed for major fixed assets, especially:
owner-occupied commercial real estate
long-term equipment purchases
It is often attractive because it may offer lower down payments and long-term fixed-rate financing on a portion of the loan.
SBA 504 may be a better fit if:
You are purchasing owner-occupied real estate
You are financing long-term equipment
You want a fixed-rate component
Your project is primarily tied to hard assets