In short
An SBA loan is a small business loan partly backed by the U.S. Small Business Administration. SBA 504 financing for owner-occupied real estate can go as low as 10% down when the business occupies at least 51% of the property. The SBA sets no minimum credit score, though most SBA lenders look for 640+ from each 20% owner.
Reviewed by Scottie Campbell, NMLS #1610726 · Last updated October 18, 2026
What is an SBA loan and how does it work?
An SBA loan is made by a participating lender and partly backed by the U.S. Small Business Administration, which lowers the lender's risk. The SBA 504 program is built for owner-occupied commercial real estate and equipment: it can go as low as 10% down, and your business must occupy at least 51% of the property. The SBA does not set a minimum credit score (it retired the 165 SBSS screen on March 1, 2026), but most SBA lenders look for 640+ from each owner of 20% or more. Approval is borrower specific, and I help you find the right financing and prepare a clean file.
Key takeaways
SBA loans are backed in part by the U.S. Small Business Administration, which gives lenders room to finance small businesses they might otherwise pass on. If you run a business in Georgetown, TX and you're tired of writing rent checks to someone else's building, an SBA 504 loan may be worth a look. I'm Scottie Campbell, a Mortgage Advisor who has spent more than two decades helping people build wealth through real estate. Approval is borrower specific, and I help you find the right financing for your business.
Own the Building, Not Just the Business
A lot of small business owners pay rent for years and end up with nothing to show for it but receipts. An SBA loan can change that. When your business owns its own real estate, the payment builds equity for you instead of your landlord.
I kinda like that strategy for a lot of business owners because it does two things at once: it gives your business a stable home, and it builds personal wealth over time. My job is to educate and empower you. Your job is to decide.
How SBA Financing Works
The U.S. Small Business Administration doesn't usually lend the money itself. A participating lender makes the loan, and the SBA backs part of it. That backing lowers the lender's risk, which is why SBA financing can work for businesses that might not fit a traditional commercial loan.
The program most tied to real estate is SBA 504:
- As little as 10% down on owner-occupied commercial real estate.
- Occupancy rule: your business must occupy at least 51% of the property. You can lease the rest to tenants.
- Uses: buying a building, building or improving one, or financing major long-life equipment.
Credit: What Changed in 2026
The SBA used to run many smaller loans through a screening score called the SBSS. The SBA retired the 165 SBSS screen on March 1, 2026, and the SBA itself does not set a minimum credit score.
What that means for you is that each lender now sets its own bar. Most SBA lenders look for 640+ from each owner of 20% or more of the business. If your score is below that, don't count yourself out. Can't do it now doesn't mean can't do it ever. We can talk through what would strengthen the file and map out the timing.
SBA 504 vs. a Conventional Commercial Loan
| SBA 504 | Conventional commercial | |
|---|---|---|
| Down payment | As little as 10% | Usually 20% to 35% |
| Occupancy | Business occupies at least 51% | Owner-occupied or investor |
| Who it fits | Operating small businesses | Businesses and investors |
| Paperwork | More forms and SBA review | Lender's own requirements |
SBA financing usually takes more paperwork and a bit more patience. In exchange, you may keep more cash in the business at closing. I'll help you weigh both sides.
What You'll Want to Have Ready
Every lender has its own list, but most SBA files include:
- Business and personal tax returns (usually the last few years)
- Year-to-date profit and loss statement and balance sheet
- A personal financial statement from each 20% owner
- Details on the property: purchase contract, use and how much space the business will occupy
- A short summary of your business, its history and your plans
Approval is borrower specific. The stronger your business's cash flow and the more organized your financials, the smoother it goes.
Where I Fit In
You're talking to the owner of this company, and I'm an active real estate investor myself. I help you find the right financing and stay with you through the process.
- Straight talk on fit. If SBA isn't the best tool for your situation, I'll tell you and walk through what might work better.
- A clean file. I help you organize the numbers and the story before anything goes to a lender.
- Total Cost Analysis. We look at the full cost over the years you'll own the building, not just the payment. Your rate depends on your scenario and the day's market. Reach out and I'll price it for real.
- High-tech, high-touch. Secure digital document collection, plus a real person you can call or text.
Let's Get You Rocking and Rolling
If you're running a business in Georgetown, TX and wondering whether it's time to own your space, start with a conversation. Bring your questions, and I'll help you build a Mortgage Action Plan that shows what it would take. Here to serve.
Information on this page is general and educational. It is not a commitment to lend or an offer of credit. Commercial and business financing is borrower specific, and programs, guidelines and eligibility change and depend on your full scenario. Waymaker Mortgage Company, NMLS 2440476. Equal Housing Lender.
Quick facts
- Minimum credit score
- No SBA-set minimum; most SBA lenders look for 640+ from each 20% owner
- SBA 504 down payment
- As little as 10% (owner-occupied real estate)
- Occupancy requirement
- Business occupies at least 51% of the property
- SBA backing
- Partly backed by the U.S. Small Business Administration
- Approval
- Borrower specific
Is this loan right for you?
Who it's for
- Small business owners who want to buy the building they operate from
- Businesses that will occupy at least 51% of the property
- Owners who want to keep more cash in the business at closing
- Businesses with steady cash flow and organized financials
Who it may not fit
- Investors buying property purely to rent to others
- Borrowers who need to close very quickly with minimal paperwork
Pros and cons
Pros
- SBA 504 can go as low as 10% down on owner-occupied real estate
- Lets your business build equity instead of paying rent
- You can lease out space your business doesn't use, up to the 49% limit
- No SBA-set minimum credit score
Trade-offs to weigh
- More paperwork and review than most other loans
- Your business must occupy at least 51% of the property
- Most lenders still look for 640+ credit from each 20% owner
Frequently asked questions
What credit score do I need for an SBA loan?
The SBA does not set a minimum credit score. It retired the 165 SBSS screen on March 1, 2026. Each lender sets its own bar, and most SBA lenders look for 640+ from each owner of 20% or more of the business.
How much down do I need for an SBA 504 loan?
SBA 504 financing for owner-occupied commercial real estate can go as low as 10% down. The exact amount depends on your business, the property and the lender, since approval is borrower specific.
Can I lease part of the building to tenants?
Yes, within limits. For SBA 504, your business must occupy at least 51% of the property. The remaining space can be leased to tenants.
Can I use an SBA loan to buy an investment property?
SBA 504 is built for businesses that will occupy the property, not for pure investment real estate. If you're buying a property only to rent out, a conventional commercial loan or another investor option is usually the better fit, and I can walk you through those.
How long does an SBA loan take?
SBA loans typically involve more paperwork and review than a residential loan, so plan ahead. Having your tax returns, financial statements and property details organized up front is the best way to keep things moving.
What will my rate be?
Your rate depends on your scenario and the day's market. Reach out and I'll price it for real.
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Last updated October 18, 2026 · Reviewed by Scottie Campbell, NMLS #1610726. This page is educational and not a commitment to lend; program details change — ask for current figures.