04 / SBA
Duke helps evaluate SBA 7(a) and 504 financing for eligible business acquisitions, owner-occupied commercial real estate, expansion and fixed-asset projects.
Two Core Programs
Both programs are subject to borrower, business, project and lender review. Their approved uses and delivery channels differ.
01 / SBA 7(a)
02 / SBA 504
Program uses reviewed September 15, 2026. Official SBA guidance: 7(a) and 504. Current lender and CDC underwriting controls the actual request.
Common Eligible Uses
These are possible use categories, not offers or statements that a specific request qualifies.
An eligible operating business may evaluate acquisition, construction or improvement of the building it uses. Program fit depends on the project and occupancy review.
Eligible complete or partial ownership changes may be considered under 7(a), with lender review of the business, purchase terms and borrower.
7(a) may support eligible business needs; 504 may support a qualifying building or major fixed-asset project. The uses are not interchangeable.
7(a) can support eligible machinery and equipment. 504 focuses on qualifying long-term machinery, equipment and other major fixed assets.
7(a) may support working capital and qualifying business-debt refinance. 504 may refinance only qualifying fixed-asset debt under its rules; it cannot fund working capital.
Owner-Occupied CRE
SBA real-estate financing is assessed around the eligible operating business and how it will occupy the building. Acquisition, construction or improvements may be considered under the appropriate program. Exact occupancy requirements depend on the project and current rules and must be confirmed by the participating lender or CDC.
504 is not a route for speculative or investment rental real estate. For an investor-owned CRE scenario, see Commercial Real Estate financing.
Business Acquisition
7(a) may support eligible complete or partial changes of ownership. The lender examines the operating business, purchase structure, buyer, repayment support and applicable SBA requirements. A seller note or purchase agreement does not decide eligibility by itself.
Expansion
An expansion may combine premises, equipment and operating needs. 7(a) may support eligible working capital and other business uses. 504 is focused on qualifying buildings, major fixed assets and qualified debt refinancing, not working capital. Duke helps evaluate which program path fits the actual uses.
Equity Injection
Equity injection means borrower or project capital contributed alongside financing. A 504 project includes a borrower contribution as part of its structure; the amount and acceptable source require CDC and lender review. A 7(a) ownership-change or other request may have different contribution requirements. Duke does not state a universal down payment.
Seller Notes
In a business purchase, a seller note is an agreement for the buyer to repay part of the price to the seller over time. Its repayment terms and treatment in an SBA financing structure depend on current rules and the lender. It does not automatically count as equity, go on standby or reduce the buyer’s required cash contribution.
Preliminary Eligibility Review
These are initial SBA concepts, not an online eligibility result. Current ownership, citizenship, occupancy and transaction rules may add requirements that a lender or CDC must verify.
504 excludes working capital, inventory and speculative or investment rental real estate. Eligible uses under either program remain subject to current program and lender underwriting.
Discuss an SBA ScenarioDocumentation Expectations
The lender or CDC sets the actual document requirements. This public page collects no files or confidential underwriting information.
The Process
Duke helps structure and coordinate the financing request. Read more about Duke’s approach to scenario review.
Duke reviews the operating business, ownership, requested use, financial picture and preliminary SBA considerations.
Duke helps evaluate whether 7(a), 504 or another appropriate capital path fits the project and identifies the information needed.
Duke helps prepare the financing request and coordinates with participating SBA lenders or CDCs and the private-sector lender, as applicable.
Common Questions
7(a) can support several eligible business uses, including ownership changes and working capital. 504 focuses on qualifying major fixed assets through a CDC and private-sector lender. The actual transaction still needs current program and lender review.
No. SBA states that 504 proceeds cannot be used for working capital or inventory. A qualifying fixed-asset or debt-refinance project is a separate question.
No. Equity or borrower-contribution requirements depend on the program and transaction. A 504 project includes a borrower contribution, but its actual structure must be reviewed with the CDC and lender; Duke does not quote a universal percentage here.
No. Seller financing may affect an acquisition structure, but its treatment as debt or equity, payment terms and any standby requirement depend on current SBA rules and lender review. Do not assume it replaces a cash contribution.
SBA says 504 cannot be used for speculation or investment in rental real estate. An operating business seeking premises it will occupy is a different scenario and requires occupancy and project review.
No. Duke provides brokerage and capital advisory support. A participating lender or CDC evaluates the actual request under current SBA rules; this page makes no eligibility or credit decision.
Begin a Conversation
Discuss the use of proceeds, ownership, financial picture and project basics with Duke by phone or email. Duke can help identify appropriate SBA lending channels.