Contributing Author & Editorial Review
This article was crafted and reviewed by experienced professionals to ensure accuracy and practical insight.
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.
Understanding SBA 7(a) vs 504 Loans: A North Carolina Business Owner’s Guide
When Sarah, a small business owner in Raleigh, North Carolina, wanted to expand her bakery, she faced a dilemma familiar to many entrepreneurs. Should she go for an SBA 7(a) loan or a 504 loan? Understanding the differences between these two options was crucial for her growth plans.
- Understanding SBA 7(a) vs 504 Loans: A North Carolina Business Owner’s Guide
- Introduction to SBA 7(a) and 504 Loans
- Who Needs These Loans?
- Why North Carolina Businesses Benefit
- Credit Score Requirements
- Approval Timeframes
- Common Mistakes by North Carolina Business Owners
- Case Study: A Raleigh Success Story
- FAQs
- Contact GHC Funding Today
Introduction to SBA 7(a) and 504 Loans
The SBA 7(a) loan and the 504 loan are two popular financing options for small businesses. While both loans serve to support businesses, they have distinct purposes and benefits. Choosing the right one can significantly impact your business’s success.
- SBA 7(a) Loan: Ideal for working capital, refinancing debt, and purchasing equipment.
- 504 Loan: Best suited for purchasing real estate or large equipment.
Who Needs These Loans?
North Carolina businesses, whether in bustling Charlotte or the serene Blue Ridge Mountains, can benefit from these loans. The 7(a) loan offers flexibility, making it suitable for various business needs. In contrast, the 504 loan targets specific asset purchases, ideal for businesses looking to grow their physical footprint.
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:
DSCR Rental Loan
- No tax returns required
- Qualify using rental income (DSCR-based)
- Fast closings ~3–4 weeks
SBA 7(a) Loan
- Lower down payments vs banks
- Long amortization improves cash flow
- Good if your business occupies 51%+
Bridge Loan
- Close quickly — move on opportunities
- Flexible underwriting
- Great for value-add or transitional assets
SBA 504 Loan
- Low fixed rates through CDC portion
- Great for construction, expansion, fixed assets
- Often lower down payment than bank loans
🌐 Learn More
For details on GHC Funding's specific products and to start an application, please visit our homepage:
Why North Carolina Businesses Benefit
North Carolina’s diverse economy, from tech hubs in the Research Triangle to agricultural enterprises in the east, presents unique opportunities and challenges. Access to capital is crucial for seizing these opportunities and overcoming challenges.
Credit Score Requirements
Credit scores play a vital role in loan approvals:
- SBA 7(a): Typically requires a credit score of 680 or higher.
- SBA 504: Often requires a minimum score of 660.
Approval Timeframes
The time to get approved can vary:
- SBA 7(a) Loan: Generally takes 5-10 business days.
- 504 Loan: May take up to 30 days due to additional paperwork.
Common Mistakes by North Carolina Business Owners
Understanding these pitfalls can save you time and money:
- Not preparing a detailed business plan.
- Ignoring credit score improvements before applying.
- Choosing the wrong loan type for their specific needs.
- Overlooking local market conditions and their impact on business growth.
Case Study: A Raleigh Success Story
Consider Tom’s auto repair shop in Raleigh. He needed funds to purchase new diagnostic equipment. By choosing an SBA 504 loan, he secured 0,000 at a low interest rate, which helped him expand operations and increase revenue by 25% in one year.
FAQs
Here are some common questions:
- Can I use a 7(a) loan to buy real estate? Yes, but a 504 loan might be more cost-effective.
- Do I need collateral for these loans? Typically, yes, especially for 504 loans.
- What are the interest rates? They vary but are generally competitive.
- Can startups apply? Yes, but having a solid business plan is crucial.
- Are there fees involved? Yes, both loans have associated fees.
- How do I apply? Contact a qualified lender or financial advisor.
Get a Free Rate Today
Compare our top-rated commercial and investment property loan programs below.
- No income verification
- 30-year fixed | Interest-only available
- Great for rental properties + STR
- Fast approvals
- Working capital + business acquisition
- Up to $5M
- Low down payment
- Long-term financing
- Owner-occupied CRE
- Low fixed rates | 25-year terms
- Great for business expansion
- Refinance available
- Best for stabilized properties
- Competitive rates
- 12–25 year terms
- Lower fees than private lenders
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 |
No Doc DSCR Loans for Investment Property in Georgia Now
GHC Funding Website Published: January 13, 2026 Categories: blog Reading Time: 3 minutes read No Doc DSCR Loans for Investment Property in…
Read more →
No Doc DSCR Loans for Investment Property in Iowa Now
GHC Funding Website Published: January 13, 2026 Categories: blog Reading Time: 3 minutes read Unlocking Opportunities: No Doc DSCR Loans for Iowa…
Read more →
Construction Loan Lenders and Process in Georgia Now
GHC Funding Website Published: January 13, 2026 Categories: blog Reading Time: 4 minutes read Navigating Construction Loan Lenders and the Process in…
Read more →
SBA Express Loan Application and Timeline in Georgia Now
GHC Funding Website Published: January 13, 2026 Categories: blog Reading Time: 3 minutes read Navigating the SBA Express Loan Application in Georgia:…
Read more →
Get SBA Loan Rates 2026 in North Carolina Now
GHC Funding Website Published: January 13, 2026 Categories: blog Reading Time: 3 minutes read Understanding SBA Loan Rates in 2026: A Guide…
Read more →
SBA Loan Requirements for Startups in Iowa Now
GHC Funding Website Published: January 13, 2026 Categories: blog Reading Time: 3 minutes read SBA Loan Requirements for Startups in Iowa: A…
Read more →Contact GHC Funding Today
Ready to take the next step? Contact GHC Funding today to explore the best financing options for your North Carolina business. Our experts are here to guide you through the process and help you achieve your business goals.
“`
Get a No Obligation Quote Today.
Use these trusted resources to grow and manage your small business—then connect with GHC Funding
to explore financing options tailored to your needs.
GHC Funding helps entrepreneurs secure working capital, equipment financing, real estate loans,
and more—start your funding conversation today.
Helpful Small Business Resources
