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SBA and BFA Lending for Business Growth

Flexible financing and long‑term solutions to help your business operate, expand, and invest with confidence.
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SBA 7(a) vs. SBA 504 — Finding the Right Fit for Your Business

St. Mary’s Bank offers SBA 7(a) and SBA 504 guaranteed loans to support businesses at various stages of growth. As the SBA Program Credit Union of the Year for 2025, we provide Small Business Administration–backed financing designed to meet a range of needs. Our commercial lending team will work with you to understand your goals, timeline, and planned use of funds, so we can recommend the loan program that best fits your situation.

SBA 7(a) Loans

SBA 7(a) loans are often the best option when flexibility matters most. These loans can be used for many day‑to‑day and growth‑related business expenses, all under one financing solution.

Common uses include:

  • Working capital
  • Purchasing or acquiring a business
  • Equipment, furniture, and fixtures
  • Leasehold improvements
  • Refinancing eligible business debt

Because of their versatility, SBA 7(a) loans are well‑suited for businesses that need room to adapt as opportunities arise.

SBA 504 Loans

SBA 504 loans are designed for businesses making significant, long‑term investments—such as buying or improving a facility or purchasing large equipment that will support operations for years to come.

Can be used for:

  • Purchasing land or buildings
  • New construction, renovations, or expansions
  • Long‑term equipment
  • Leasehold improvements
  • Refinancing qualifying real estate debt
  • Certain project‑related soft costs, such as appraisals, permits, and professional fees

This program helps businesses grow while maintaining predictable payments and preserving working capital.

Choosing Between SBA 7(a) and SBA 504

In simple terms:

  • SBA 7(a) loans are best when flexibility is the priority
  • SBA 504 loans are best for long‑term investments in property or equipment

Both programs are designed to support small business growth. The right choice depends on how you plan to use the funds, your timeline, and your long‑term strategy.

At St. Mary’s Bank, we take the time to understand your business and help determine which SBA loan program best supports your next step. Reach out to a Commercial Loan Specialist today for a free consultation to review the right option for your business.

Get Started on your SBA or BFA Loan

Log in to the portal below to submit your inquiry and upload your financial documents. Our Commercial Lending team will follow up. Questions? Contact us or schedule an appointment.

Experienced in Securing Agency Guarantees

SBA and BFA loans can open doors—but the process benefits from experienced guidance. At St. Mary’s Bank, our Commercial Banking team partners directly with the Small Business Administration and the Business Finance Authority of New Hampshire to help move your loan forward smoothly.

From application review to loan funding, we help connect the pieces and keep the process moving, providing support and clarity every step of the way.

Meet the Commercial Banking Team

Not sure where to start? You can call the Commercial Banking Team at (603) 629-1517.

 

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FAQs

What is the difference between an SBA 7(a) loan and an SBA 504 loan?

SBA 7(a) loans offer flexibility and can be used for a variety of business needs, including working capital, equipment, commercial real estate, refinancing, or business acquisitions, with loan amounts up to $5 million. SBA 504 loans are designed specifically to finance major fixed assets, such as commercial real estate or heavy equipment, and are provided in partnership with a Certified Development Company (CDC). These loans typically offer fixed-rate financing for eligible projects.

The right loan depends on your business goals and how you plan to use the funds. Our commercial lending team can help you determine which SBA financing option is the best fit for your needs.
Can a startup or new business get a small business loan?
Yes, although obtaining financing as a startup or new business often requires additional preparation. While many lenders prefer to see at least two years in business, a strong business plan, realistic financial projections, and relevant industry experience can help strengthen your application. SBA loans and New Hampshire Business Finance Authority (BFA) programs may also provide financing opportunities for newer businesses. In some cases, starting with a smaller loan or line of credit can help establish your business's credit history and position you for future financing as your business grows.
How do I apply for a small business loan in New Hampshire?
Start by identifying what you need financing for, as that will help determine the loan that's right for your business. Gather your financial statements, tax returns, and a current debt schedule before meeting with a lender. Then, schedule a conversation with our commercial lending team. We'll take the time to understand your business, discuss your goals, and help you identify the financing solution that best fits your needs.
What credit score do you need to qualify for a small business loan?
There isn't a single minimum credit score required to qualify for a small business loan. While many financial institutions look for a personal credit score of 680 or higher, eligibility depends on a variety of factors. The SBA does not establish a minimum credit score requirement, and each lender uses its own underwriting criteria. In addition to your credit history, factors such as cash flow, available collateral, and the overall strength of your application are also considered. For newer businesses, an owner's personal credit history often plays a larger role until the business establishes its own credit profile.
Do you need collateral for a small business loan?
In many cases, yes, but it depends on the type of loan. Loans for commercial real estate or equipment are typically secured by the asset being financed. Other business loans may also require collateral, using available business assets when appropriate. If you're applying for an SBA loan, collateral is generally expected when it's available, but a loan won't be declined solely because there isn't enough collateral. Most business loans also require a personal guarantee from any owner with a 20% or greater ownership interest.
How long does it take to get approved for a small business loan?
Approval timelines vary depending on the type of loan and the complexity of your financing request. Conventional term loans and lines of credit may be approved in as little as a few days or may take a couple of weeks, while SBA loans typically require additional documentation and underwriting, which can extend the process to 30 to 90 days. SBA Express loans generally fall somewhere in between.

One of the best ways to help keep the process moving is to provide a complete application and all requested documentation. Our commercial lending team will guide you through each step and let you know what information is needed along the way.

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