SBA
SBA 7(a) Owner-User
SBA 7(a) for owner-user real estate, equipment, working capital, or a business acquisition. Individual 7(a) still tops at $5 million; combined 7(a)+504 can reach $10 million under the July 4, 2026 coordination rule.
Available throughout Southern California through Francisco Williams, CCIM, NMLS #1858674.
Ideal borrower
U.S. citizen or U.S. national owners buying their operating real estate or acquiring a small business.
Program highlights
- Individual 7(a) loan to $5 million
- Combined 7(a)+504 up to $10 million (effective July 4, 2026)
- Owner-user occupancy: 51% existing / 60% new construction
- 10% equity injection on complete change of ownership (SOP 50 10 8)
Typical uses
- Owner-user property acquisition
- Business acquisition
Frequently asked questions
- What's the difference between SBA 7(a) and SBA 504?
- 7(a) is the flexible program — real estate, equipment, working capital, or a change of ownership. 504 is for owner-user real estate and heavy equipment, typically 50% bank + 40% SBA debenture + 10% borrower equity, with a long fixed-rate CDC second. 504 usually prices the real-estate stack better; 7(a) is the door for mixed-use capital.
- What changed in 2026 on loan size?
- The individual 7(a) maximum is still $5 million. SBA Policy Notice 5000-879058 / SBA news 26-52 (May 18, 2026; effective July 4, 2026) lets an eligible borrower stack a 7(a) and a 504 for up to $10 million combined. Overlay and guaranty exposure still have to work on the actual file.
- Who can own the borrower in 2026?
- As of March 1, 2026 (SBA Procedural Notice 5000-876626), 100% of direct and indirect owners must be U.S. citizens or U.S. nationals with their principal residence in the United States, its territories, or possessions. Lawful Permanent Residents (green cards) are ineligible persons under that notice. Confirm the SOP in force at lock.
- Can I use SBA to buy a building my business occupies?
- Yes — owner-user real estate is the core use. Occupancy is at least 51% of an existing building or 60% of new construction. You can lease the remainder. This is not an approval from a web page.
- How long does SBA take to close?
- Plan 45–75 days for 7(a) and 60–90 days for 504. Longer than conventional. Timeline is overlay- and CDC-dependent.
- What is SOP 50 10 8.1?
- SBA Information Notice 5000-880695 (August 14, 2026) issues SOP 50 10 8.1 effective October 1, 2026 for applications that receive an SBA loan number on or after that date. Applications submitted through September 30, 2026 stay on SOP 50 10 8. Change-of-ownership equity-injection sources tighten under 8.1. Confirm which SOP applies before you underwrite the deal.
Program details shown are representative guidelines and subject to individual lender overlays and CFPB / agency requirements. Rates shown are illustrative and subject to change without notice. Actual rate, APR, and terms will depend on creditworthiness, loan-to-value, property type, occupancy, loan amount, loan program, and other factors. Not all applicants will qualify. This is not a commitment to lend; all loans are subject to credit approval, income and asset verification, and property appraisal.