Below is a sample real estate project with Bank, Premier Capital (504), 7a options.
| Land & Building | Renovations | Machinery | Soft Costs |
|---|---|---|---|
| $800,000 | $100,000 | $50,000 | $50,000 |
Sample: Total Project Cost = $1,000,000
| Bank | Premier Capital (504) & Bank | SBA 7(a) | |
|---|---|---|---|
| Down Payment | 20% | 10% | 10% |
| Bank Loan Amount | $800,000 | $500,000 | $900,000 |
| 504 Loan Amount* | - | $411,000 | - |
| Amortization | 20 years | 20 years | 20 years |
| Bank / 7(a) Rate (Prime + 2%) | 9.00% | 9.00% | 9.00% |
| 504 Rate (20-year) | - | 6.98% | - |
| Estimated Monthly Payment | $7,197.81 | $7,680.18 | $8,097.53 |
Sample: 8.09% Bank + 504 Blended Rate
| Bank | Premier Capital (504) & Bank | SBA 7(a) | |
|---|---|---|---|
| Equity Requirement | $200,000 | $100,000 | $100,000 |
| 7(a) Upfront Guaranty Fee | - | - | $23,625 |
| 504 Lender Participation Fee | - | $2,500 | - |
| Estimated Cash Required (excluding other closing costs) | $200,000 | $102,500 | $123,625 |
Example estimates and assumptions
Rates, payments, and fees are estimates based on current rates available as of October 19, 2026, and are provided only as examples. They are not an offer or commitment to lend. Actual rates, fees, terms, required equity, and payments depend on the project, borrower, lender, SBA requirements, and funding date.
All options use 20-year amortization. The bank rate is Prime of 7.00% plus 2 percentage points, or 9.00%. The 7(a) comparison assumes the same Prime + 2% rate. The 504 estimate uses Premier Capital's published October 2026 20-year rate of 6.98%. These calculations hold rates constant for illustration; Prime-based rates and payments may change. Payments calculated using the published 504 effective rate are estimates, not a contractual payment schedule.
*The $411,000 504 note includes $400,000 toward project costs and an illustrative $11,000 allowance for financed upfront fees and costs; this allowance is not a current fee quote. The example assumes the borrower separately pays the $2,500 third-party lender participation fee and does not qualify for a 504 fee waiver. The 7(a) example includes a $23,625 standard FY 2027 upfront SBA guaranty fee ($900,000 × 75% × 3.5%), paid separately, and assumes no other 7(a) loans requiring fee aggregation. Other lender charges, closing costs, taxes, and insurance are excluded.
The 8.09% blended rate weights the $500,000 bank loan and $411,000 504 note by principal; it is not an annual percentage rate (APR). The combined monthly payment adds the separately calculated payments for the bank and 504 portions.
Rate and fee sources: Premier Capital rate history, Federal Reserve Prime rate, SBA FY 2027 7(a) fees, and 504 lender participation fee.