Lender type
SBA loans, matched to your deal
An SBA loan is financing for real estate a business will occupy, made by a lender under the Small Business Administration's 504 or 7(a) program. The 504 structure pairs a bank first mortgage with a second mortgage funded through a certified development company; the 7(a) structure is a single loan with a government guaranty behind part of it. Both trade a lower equity requirement and a longer term for eligibility rules on occupancy, business size and use of proceeds. Approved lenders read those rules differently, which is why one file deserves several answers.
- 5,000+loan programs screened
- 5–8matches on a typical deal
- $0 upfrontto submit and compare offers
- 0.50–1.00%broker fee, paid only at closing
Who is an SBA loan actually for?
Operating businesses buying, building or refinancing the property they run from: a manufacturer buying its plant, a medical practice buying its building, a hotel or self-storage operator whose business and real estate are the same enterprise. Passive investment property does not qualify; the business has to occupy the majority of the space. Investors financing tenanted property are served by the conventional and specialty programs instead.
What do SBA lenders disagree about?
Eligibility judgment and structure. Lenders take different views on which program suits a given deal, how they underwrite the business's cash flow alongside the real estate, how much of the equity can come from seller financing or from the business's own assets, whether a particular use fits the program's rules, and how fast they can process a file. Lenders with delegated authority move on their own credit decision; others submit to the agency and wait. That difference alone changes the timeline.
What should be ready before an SBA file goes out?
The business's tax returns and interim financials, a description of the business and its ownership, the property contract or plans, the occupancy plan that shows the business using the majority of the space, personal financial statements for the owners, and the use of proceeds. Files that arrive with the business cash flow already reconciled to the proposed debt service get taken seriously faster, because that coverage test is the first thing an SBA lender runs.
How does getting matched actually work?
You describe the deal once — about five minutes — and it is screened against 5,000+ loan programs. Most deals return 5–8 matches, and the median first offer arrives in under an hour. There is $0 upfront; the fee is 0.50–1.00%, paid only at closing.
YieldStack is a commercial mortgage brokerage, not a lender. The rate, the leverage and the credit decision belong to the lenders competing for your deal; our job is making sure the right ones see it at the same time, so the terms you compare are real competition rather than one desk’s appetite.
What do lenders actually look at?
Every program weighs these in its own way — which is the argument for several quoting at once.
- The business's cash flow and whether it covers the proposed debt
- Owner-occupancy of the property against the program's standard
- Business size, ownership and eligibility under the program rules
- The owners' personal financial strength and history
- Whether the lender has delegated authority or must submit the file
Frequently Asked Questions
What is the difference between 504 and 7(a)?
The 504 program is built for fixed assets like real estate, pairs a bank first mortgage with a development-company second, and carries a long fixed rate on the second. The 7(a) program is a single guaranteed loan that can also fund working capital and equipment.
Can an investor use an SBA loan for rental property?
No. The programs require an operating business to occupy the majority of the property. Rental and passive investment property are financed through other programs.
Is the SBA the lender?
No. The lender makes the loan; the agency guarantees part of it or, in the 504 structure, backs the second mortgage. The borrower deals with the lender and, for 504, the development company.
Can SBA financing cover construction or renovation?
Yes, both programs can fund construction and improvements on property the business will occupy, with the same occupancy rules applied to the finished building.
Do the owners have to sign personally?
Generally, yes. Owners above a threshold ownership share are expected to guarantee the loan, and their personal finances are part of the file.
How long does an SBA loan take?
Longer than a conventional loan, and it varies by lender. Delegated lenders decide on their own; non-delegated lenders submit to the agency. Asking each lender for its timeline up front is the practical answer.
Is YieldStack a lender?
No. YieldStack is a commercial mortgage brokerage, not a lender. Every term sheet comes from a lender in the network and is subject to that lender's underwriting.
Does it cost anything to see terms?
No. It costs $0 upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing.
Is financing guaranteed?
No. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
Next step
One deal.Several lenders.
YieldStack is a commercial mortgage brokerage, not a lender.