Get SBA 7(a) vs 504 loan in Pennsylvania Now

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Published: December 25, 2025
Categories: blog
Reading Time: 3 minutes read
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Contributing Author & Editorial Review

This article was crafted and reviewed by experienced professionals to ensure accuracy and practical insight.

GHC Funding

GHC Funding

Contributing Author

Jordan focuses on real estate finance, small business capital, and practical investing strategies for growth-minded entrepreneurs.

Taylor Morgan

Taylor Morgan

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Taylor reviews content for clarity, compliance, and real-world relevance to ensure every article meets professional standards.

Content is provided for educational purposes and does not constitute legal, tax, or financial advice. Please consult your own advisors before making decisions.

SBA Loan

SBA 7(a) & 504 Highlights

  • Loan amounts from $100,000 up to $15 million+ (program-dependent).
  • Up to 90% financing for eligible acquisitions, real estate, and equipment.
  • Use funds for working capital, refinance, expansion, and partner buyout.
  • Longer terms (up to 25 years on real estate) to keep payments manageable.
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Understanding SBA 7(a) vs 504 Loans: A Guide for Pennsylvania Business Owners

When Sarah, a small business owner in Pittsburgh, decided to expand her bakery, she was overwhelmed by the financing options available. Like many, she asked herself, “Which loan is right for my business?” Understanding the differences between the SBA 7(a) and 504 loan programs can be crucial for Pennsylvania entrepreneurs like Sarah looking to grow.

In this article...

The Basics of SBA 7(a) Loans

The SBA 7(a) loan is the most popular SBA loan program, offering flexibility to meet various business needs. It’s designed for those who need funding for working capital, expansion, or equipment purchases.

  • Loan Amount: Up to $5 million
  • Credit Score Requirement: Typically 680 or higher
  • Approval Time: Can take 5-10 business days

Who benefits? Businesses looking for a versatile financing option. In cities like Philadelphia and Harrisburg, where market competition is fierce, having access to flexible funds can be a game-changer.

Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!

⚡ Key Flexible Funding Options:

GHC Funding everages financing types that prioritize asset value and cash flow over lengthy financial history checks:

Top Pick

DSCR Rental Loan

Best for: Scaling rental portfolios
★★★★★ 4.8/5 (120 reviews)
Starting rate~7–9%+
Loan amounts$100K – $5M+
Term30 yr fixed / ARMs
Highlights
  • No tax returns required
  • Qualify using rental income (DSCR-based)
  • Fast closings ~3–4 weeks
Check DSCR Rates

SBA 7(a) Loan

Best for: Owner-occupied commercial real estate
★★★★★ 4.6/5 (89 reviews)
RatePrime + spread
Loan amounts$350K – $5M+
TermUp to 25 years
Highlights
  • Lower down payments vs banks
  • Long amortization improves cash flow
  • Good if your business occupies 51%+
Explore SBA Options

Bridge Loan

Best for: Fast closing + value-add deals
★★★★☆ 4.4/5 (72 reviews)
RateVaries by deal
Loan amounts$250K – $15M+
Term6–24 months
Highlights
  • Close quickly — move on opportunities
  • Flexible underwriting
  • Great for value-add or transitional assets
Talk to a Specialist
Low Rates

SBA 504 Loan

Best for: Large CRE acquisitions & refinancing
★★★★★ 4.7/5 (101 reviews)
RateFixed, low CDC rate
Loan amounts$500K – $12M+
Term10, 20, 25 years
Highlights
  • Low fixed rates through CDC portion
  • Great for construction, expansion, fixed assets
  • Often lower down payment than bank loans
Check 504 Eligibility

🌐 Learn More

For details on GHC Funding's specific products and to start an application, please visit our homepage:

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Exploring SBA 504 Loans

The SBA 504 loan is ideal for businesses aiming to purchase real estate or large equipment. It’s structured to foster growth and job creation.

  • Loan Amount: Typically up to $5.5 million
  • Credit Score Requirement: Around 650 or higher
  • Approval Time: Generally 30-45 days

Who benefits? Entrepreneurs in regions like Allentown and Erie, where industrial growth is booming, can take advantage of this loan to invest in property or machinery.

Common Mistakes to Avoid

Many Pennsylvania business owners make these errors when applying for SBA loans:

  • Not understanding the full terms and conditions
  • Failing to prepare a detailed business plan
  • Overestimating their creditworthiness
  • Underestimating the time needed for approval

By avoiding these pitfalls, business owners in cities like Scranton and Lancaster can streamline their loan application process.

Case Study: A Pennsylvania Success Story

Consider John, a restaurant owner in Bethlehem. He secured a million SBA 7(a) loan to renovate his premises and expand seating. Within a year, his revenue increased by 30%, allowing him to hire more staff and support local suppliers. This growth was possible due to the strategic use of SBA loans.

Frequently Asked Questions

Here are some common queries from Pennsylvania business owners:

  • What’s the difference between a 7(a) and 504 loan? The 7(a) is versatile, while the 504 is for real estate and equipment.
  • How do I qualify for an SBA loan? Ensure you meet credit score and business plan requirements.
  • Can I use a 7(a) loan for real estate? Yes, but a 504 loan might be more suitable.
  • What are the interest rates? Rates vary; consult with your lender for specifics.
  • How long does it take to get approved? 7(a) loans take about 5-10 days, 504 loans 30-45 days.
  • Can I apply if my business is new? Yes, but you’ll need a solid business plan.

Get a Free Rate Today

Compare our top-rated commercial and investment property loan programs below.

DSCR Loan
⭐ 4.8/5
  • No income verification
  • 30-year fixed | Interest-only available
  • Great for rental properties + STR
  • Fast approvals
Check My Rate
SBA 7(a) Loan
⭐ 4.9/5
  • Working capital + business acquisition
  • Up to $5M
  • Low down payment
  • Long-term financing
Check My Rate
SBA 504 Loan
⭐ 4.9/5
  • Owner-occupied CRE
  • Low fixed rates | 25-year terms
  • Great for business expansion
  • Refinance available
Check My Rate
Bank / CRE Loan
⭐ 4.7/5
  • Best for stabilized properties
  • Competitive rates
  • 12–25 year terms
  • Lower fees than private lenders
Check My Rate

Compare Loan Types

Find the Right Financing for Your Real Estate or Business Project

Loan Type Best For Rates Terms Highlights Apply
DSCR Loan Rental properties (LTR & STR) 5.99%+ 30-year fixed, IO options No income docs, fast approvals, great for investors Check My Rate
Construction Loan Ground-up, fix & build, major renovations 8%–12% depending on scope 12–24 months interest-only Flexible draws, great for builders & developers Get a Quote
SBA Loan Business acquisition, working capital, CRE Prime + spread 10–25 years Lowest down payments, long terms, best for business growth See My Options

Contact GHC Funding for Expert Guidance

Choosing the right loan can be daunting. At GHC Funding, we’re committed to helping Pennsylvania businesses navigate their financing options. Contact us today to learn how we can support your growth journey.

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GHC Funding DSCR, SBA & Bridge Loans
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