SBA Loan Programs Compared: 7(a) vs 504 vs Microloan vs Express

Start from what you're actually buying, and the program picks itself. Buying or improving a building? That's the 504. Need flexible cash for almost anything, including an acquisition? That's the 7(a), up to $5M. Want a small line fast? SBA Express or a Working Capital Pilot line. Borrowing under $50,000? A microloan.

The fast way to choose: what are you buying?

Every SBA program has a job it's built for. Pick by the purchase, not by the name:

• Buying real estate or long-life equipment? Look at 504 first, then 7(a).
• Buying a business, mixing real estate with working capital, or refinancing debt? That's 7(a).
• Need a smaller amount fast, or a revolving line? SBA Express or the Working Capital Pilot.
• Borrowing under $50,000, or newer with a thinner file? A microloan.

The rest of this page is the detail behind that list. One quick note on a 2026 rule: as of July 4, 2026, the cumulative cap on what one borrower can owe across 7(a) and 504 combined rises from $5M to $10M (Policy Notice 5000-879058). The per-loan 7(a) ceiling stays at $5M. Rules change, so confirm current SBA notices with your lender.

SBA 7(a): the flexible workhorse

The 7(a) is the program most people mean when they say "SBA loan." It funds almost anything a business legitimately needs: working capital, equipment, inventory, buying out a competitor, and even owner-occupied real estate.

• Loan max: up to $5M (per-loan, unchanged in 2026).
• Rate: variable, set as a base rate plus a margin the SBA caps by loan size, so the lender can't pile on.
• Term: shortest term that fits the use. Working capital generally runs up to about 10 years; real estate stretches up to 25.
• Use of proceeds: broad. Working capital, equipment, inventory, acquisitions, real estate, and refinancing.
• Best fit: a borrower who needs one loan to cover mixed costs, or who's buying a business. A dental hygienist buying a retiring dentist's practice (goodwill, equipment, a few months of payroll) is pure 7(a) territory, because none of that is "fixed assets only."

If you're weighing the 7(a) against the 504 for a building, the trade-offs are laid out in SBA 7(a) vs 504.

SBA 504/CDC: fixed assets only, fixed rate

The 504 exists for one thing: buying or building long-term fixed assets. Think owner-occupied buildings, land, new construction, and heavy machinery with a useful life of 10 years or more. The structure is unusual, a bank loan plus a portion funded through a Certified Development Company (CDC).

• Loan max: up to $5M for most projects, up to $5.5M for small manufacturers and eligible energy or public-policy projects.
• Rate: the CDC portion carries a fixed, below-market rate pegged to an increment above the 10-year U.S. Treasury.
• Term: 10, 20, or 25 years.
• The catch: it cannot fund working capital, inventory, or speculative or rental real estate. This is the disqualifier most borrowers miss.
• Best fit: a manufacturer buying its own plant, or a clinic buying the building it leases. Steady, asset-heavy purchases where a long fixed rate beats flexibility.

SBA Express and the Working Capital Pilot: speed and lines of credit

Two programs trade some size for speed and flexibility:

• SBA Express: up to $500,000 with a 50% SBA guaranty. The trade is a smaller guaranty for a faster lender decision, which suits a quick equipment buy or a modest line.
• 7(a) Working Capital Pilot (WCP): revolving working-capital lines up to $5M with maturities up to 60 months. It's a genuine line of credit for businesses with cyclical or seasonal cash needs, not a one-time lump sum. Most generic SBA pages skip it entirely.

If a line of credit is what you actually need, see SBA Express and lines of credit.

SBA Microloan: small amounts, lower bars

The microloan goes up to $50,000 and is delivered through nonprofit intermediary lenders, not banks. Those intermediaries weigh character and cash flow over a single credit number, so the bar to qualify is lower than a bank 7(a). It's built for start-ups, newer businesses, and owners who need a small amount to get moving.

• Loan max: up to $50,000.
• Delivered by: nonprofit intermediary lenders.
• Best fit: a newer business, a thinner credit file, or any need under $50,000. Full detail in SBA microloans.

How to choose, in one pass

Walk it in order and stop at your first yes:

• Under $50,000, or newer with a thin file? Microloan.
• Buying real estate or long-life equipment, and only that? 504.
• Need a revolving line or money under $500K, fast? Express or the WCP.
• Everything else, especially buying a business or mixing uses? 7(a).

Rate and fee structures differ by program too, and those add up; the breakdown is in SBA loan fees and rates. And if you're still deciding between any SBA loan and a regular bank loan, compare them in SBA loan vs conventional loan.

Once you know the program, the next step is the lender. Most banks technically can write SBA loans; most wrote zero last year. Find a lender in your state that's active in the program you need, and you're most of the way there.

Tell us what you're buying and we'll point you to an active lender who writes that program.