504 vs SBA 7(a) Loans
Many commercial lenders who talk about SBA financing or options with low down payments will only mention SBA 7(a) loans, neglecting the SBA 504 loan program altogether.
There is a very good reason for this: 7(a) loans are in their better interest, even if it isn’t beneficial for the small business owner taking out the loan. The 7(a) loan is a good and helpful tool for small businesses, but it wasn’t designed to finance commercial property. The 504 loan was.