$39 · Instant download · Verified vs SOP 50 10 8
7(a) vs 504, answered on your numbers
Everyone explains the difference. Nobody tells you what it costs on your deal. Enter it once and see the payment, the cash you need at close, and the total you pay under each.
The thing most calculators get wrong right now: until this year an outstanding 7(a) balance reduced what you could borrow under 504, so buyers treated the two as either/or, capped at $5,000,000. Policy Notice 5000-879058, effective July 4, 2026, changed that. The limits are now independent, so a larger project can stack both programs, up to roughly $10M combined. This analyzer applies the new rule and tells you the sequence, which matters: the 7(a) has to be approved first.
Built to answer in under a minute. Six inputs at most, already filled in with typical numbers for your industry, and the verdict sits at the top in plain words. The supporting math is underneath if you want to check it, and you never have to open it if you do not.
What it computes
- ✓ What each program can actually finance from your deal (504 cannot touch goodwill or working capital)
- ✓ Your required injection under each, including the 15% rule on special-use property like a hotel
- ✓ Monthly payment, annual debt service, and total paid over the term, side by side
- ✓ The FY2026 upfront guaranty fee on the guaranteed portion
- ✓ The gap a 504 leaves uncovered, which is where most 504-looks-cheaper analysis falls apart
- ✓ A plain verdict: 7(a), 504, or stack both, with the reason
1. Choose your industry
2. Get it
Get the analyzer, $39Excel file, instant download after checkout. Formulas open so you can see and defend every number.
Need more than this one answer? The full Will the SBA Fund This Deal kit is $67 right now, normally $97, and includes all of these plus the five-year projections and the lender-ready package. Three separate tools already cost more than that, so if you are weighing three or more, start there instead.
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The free calculators cover the individual pieces: payment, down payment, and guaranty fee. This analyzer exists because comparing two whole programs on one deal is the part they cannot do.
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Frequently Asked Questions
Can you use an SBA 7(a) and a 504 loan on the same project?
Yes, as of Policy Notice 5000-879058, effective July 4, 2026. The 7(a) and 504 limits are now independent, so the two can stack to roughly $10 million combined. The 7(a) has to be approved first.
What can a 504 loan not pay for?
Goodwill and working capital. A 504 finances real estate and long-life equipment only, which is why most practice and service-business acquisitions require a 7(a).
Is a 504 cheaper than a 7(a)?
On rate, usually yes, because the CDC portion is fixed for the full term. On total cash, often no, because a 504 leaves goodwill and working capital uncovered and you still need a second loan for that piece.
Written by Thomas Hartwell, author of the FUNDED series of industry-specific SBA lending guides.