Can You Combine an SBA 7(a) Loan with an SBA 504 Loan?

Many borrowers appreciate the fact that SBA 7(a) loans can be used for both working capital and commercial real estate— which makes them one of the most versatile loans on the market. However, their close cousins, SBA 504 loans, which can only be used for commercial real estate, often have lower interest rates, and have a slightly larger maximum loan amount, at $5.5 million (vs. $5 million for SBA 7(a) loans. So what if you could combine an SBA 7(a) loan for working capital with a SBA 504 loan for real estate? Well, you might be able to— but probably not at the exact same time.

Getting More Than One SBA Loan

There’s no specific prohibition against getting more than one SBA loan, but your loans will all have to fit within the SBA’s eligibility guidelines. Usually, this means:

  • Remaining within the maximum amount for that loan type

  • Maintaining an excellent credit score (680+ in most cases)

  • Ensure that your business stays within the SBA’s allowed industries and size measures

  • Putting up enough collateral for each loan

In many cases, however, the SBA is likely to prefer that a borrower waits a bit between taking out loans, especially if the loans are larger. This helps establishes a borrower’s track record as trustworthy, reducing potential risk both the SBA and the lender. Despite that, it doesn’t hurt to try; if you have great credit and a stellar business, the SBA and your lender might be perfectly fine with you combining 7(a) and 504 loans.


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