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Financing Comparator

SBA 7(a), SBA 504, conventional, and seller-note financing — same purchase price, side by side. Down payment, rate, term, monthly payment, and total interest update live as you change the inputs.

The all-in deal price (business + equipment + working-capital baseline)

StructureDownLoanRateTermMonthlyTotal interest
SBA 7(a)$50,000$450,00011.0%10yr$6,199$293,850
SBA 504$50,000$450,0007.5%25yr$3,325$547,638
Conventional$125,000$375,0009.5%7yr$6,129$139,835
Seller note$0$500,0007.0%5yr$9,901$94,036

SBA 7(a)

Prime + 2.75–4.75%. 10-yr amortization for goodwill-heavy acquisitions.

SBA 504

Blended bank + CDC rates. Real-estate-heavy deals only. 25-yr term.

Conventional

Bank business loan. Higher down payment, shorter term.

Seller note

Seller-carried financing. Often layered with another primary loan (down % shown applies to seller-note portion).

When to use each structure

SBA 7(a) — the workhorse for goodwill-heavy small business acquisitions. 10% minimum down, 10-year amortization, no balloon. Best when the deal is mostly goodwill. SBA loans explained.

SBA 504 — designed for real-estate-heavy deals. Blended bank + CDC structure with 25-year term on the real estate. Lower blended rate but only relevant when the building is part of the deal.

Conventional — bank business loan. Higher down (typically 25%+) and shorter term (5–7 years). Faster to close than SBA but less leverage.

Seller note — seller-carried financing. Often layered with a primary loan to bridge the gap, especially when the buyer is short on cash. Build the note structure.