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GHC Funding
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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 Guide for Kansas Business Owners
When Mary launched her boutique in Wichita, she faced a dilemma familiar to many Kansas entrepreneurs. Despite her passion and vision, financial constraints threatened her dream. She needed funding but was unsure which option was best. This is a common scenario for business owners across Kansas, from bustling Overland Park to vibrant Topeka. Understanding the differences between SBA 7(a) and 504 loans could be the key to unlocking your business’s potential.
Understanding SBA 7(a) Loans
The SBA 7(a) loan is the most popular SBA loan program, offering flexibility to Kansas business owners. It’s ideal for those seeking working capital, purchasing inventory, or refinancing existing debt. With loan amounts up to $5 million, it’s a robust option for many.
Here are some key benefits:
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
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For details on GHC Funding's specific products and to start an application, please visit our homepage:
- Long repayment terms up to 25 years
- Lower down payment requirements
- Use for a wide range of business purposes
However, there are considerations. A minimum credit score of around 680 is typically required, and the approval process can take several weeks. Patience and preparation are essential.
Diving into SBA 504 Loans
For Kansas businesses looking to invest in fixed assets, the SBA 504 loan is an attractive choice. This loan is specifically designed for purchasing real estate or machinery, making it perfect for growing industries in Kansas like manufacturing and agriculture.
Benefits include:
- Low, fixed interest rates
- Long-term financing options
- Facilitates major expansion projects
But remember, this loan requires 10% down payment and a credit score of at least 680. Approval can be quicker, often within 30 days, but it requires thorough documentation.
Real Challenges for Kansas Business Owners
Kansas presents unique challenges and opportunities for business owners. Whether in Kansas City or smaller towns like Salina, understanding local market conditions is crucial. Challenges include fluctuating agricultural prices and access to skilled labor, making the right loan choice vital.
Three common mistakes Kansas entrepreneurs make include:
- Not fully understanding loan terms
- Underestimating required documentation
- Failing to assess long-term financial impact
Case Study: A Kansas Success Story
Consider John’s construction company in Lawrence. With a dream to expand, he chose an SBA 504 loan to purchase new equipment. With a $500,000 loan, his business grew by 30% within a year, showcasing the power of choosing the right financial tool.
FAQs
Here are some questions Kansas business owners frequently ask:
- What’s the difference between the two loans? 7(a) is versatile, while 504 is for fixed assets.
- How do interest rates compare? 504 loans typically offer lower fixed rates.
- Which loan has a faster approval process? Generally, 504 loans are quicker.
- Can I use a 7(a) loan for real estate? Yes, but 504 is often more suitable.
- What if my credit score is below 680? Consider improving your score or seeking alternative funding.
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 |
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Ready to take the next step? At GHC Funding, we understand the intricacies of SBA loans and the Kansas market. Let us help you navigate your options and find the best fit for your business. Contact us today to explore how we can support your growth.
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to explore financing options tailored to your needs.
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and more—start your funding conversation today.
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