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Commercial

SBA 504 vs Conventional CRE — Which Is Cheaper?

For owner-occupied Florida commercial property, SBA 504 usually wins. Here's why (and when it doesn't).

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How SBA 504 is structured

A 50% bank first, 40% CDC/SBA second, and 10% borrower down — with a fixed 25-year rate on the second.

When conventional wins

Speed-to-close, non-owner-occupied properties, and situations where SBA fees outweigh the rate advantage.

What underwriters really need

The tax returns, rent rolls, and business financials that determine whether you get approved.

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