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|Loan||SBA 504||SBA 7(a)|
|Eligible business size||Net worth of $15 million or less.Average net profit after taxes for the past two years should be $5 million or less.||Annual sales cannot exceed $750,000 or $33.5 million for retail, service, or agriculture industries.100 employees or fewer, or 1,000 employees or fewer for a wholesale or manufacturing business.|
|Loan term||10 years for an equipment loan.20 or 25 years for real estate.Prepayment penalty.||10 years for a business acquisition or equipment loan.Up to 25 years for real estate.5 to 7 years for working capital.Prepayment penalty.|
|Interest rate||Fixed rate.||Almost always variable.|
|Proceed use||Purchase an existing building.Land acquisition and ground-up construction.Improve, repair, or expand existing building.Equipment purchase.Working capital.Leasehold improvements.||Expand, acquire, or start a business.Purchase an existing building.New construction.Refinance existing business debt.Equipment or inventory purchase.Working capital.Leasehold improvements.|
|Eligibility or program requirements||Must prove job retention or job creation out of proceeds.A personal guarantee for any owner with 20% or more stake in the business.||A personal guarantee for any owner with 20% or more stake in the business.May require the borrower to pledge primary residence if there is more than 20% equity in their home.|
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