SBA loans are not made by the Small Business Administration directly. They are made by lenders and partially guaranteed by the SBA, which reduces lender risk and, in turn, opens the door to longer terms, lower down payments, and more flexible collateral requirements than many conventional loans.
The 7(a) program
The 7(a) program is the most flexible, supporting acquisitions, partner buyouts, expansion, working capital, equipment, debt refinance, and owner-occupied real estate. Terms commonly run up to 10 years for most uses and up to 25 years for real estate, typically fully amortizing with no balloon payment.
The 504 program
The 504 program is purpose-built for owner-occupied commercial real estate and major fixed assets. It pairs a conventional first mortgage with an SBA-backed second, often allowing a lower down payment while financing long-lived assets over extended terms.
Express loans
SBA Express is a faster subset of 7(a) for working capital and non-titled equipment, generally at smaller loan sizes with a streamlined process. It is often a fit for expansion needs that do not require the full 7(a) structure.