SBA 504 Loan Program vs. 7(A) Loan Program

Why should lenders consider using 504 vs. 7(A)?

  • Low loan to cost (generally 50%), no guarantee needed. The SBA 504 loan program simply commits to an end take out reducing the lender’s final exposure. It’s difficult to imagine incurring a loss with 50% loan to cost value!
  • Collateral is project specific, which leaves working assets available to support other loans.
  • No restrictions on lender’s pricing or structure, except the interest rate must be reasonable and the term at least 10 years for real estate and 7 years for equipment/machinery.
  • We keep up with all of the SBA requirements and regulations, reducing the burden on the lender.
  • The SBA approval process and paperwork is handled entirely by Montana Community Finance Corporation (MCFC), making the process less burdensome for the lender. MCFC staff will guide you through the process.
  • No monthly fees to Colson Services, you retain all the fee income!

MCFC is your partner, not your competitor. Explore all of your options.

If you have a potential project, we can provide you with a 504 vs. 7(A) comparison.