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, November 2026 — Other) | - | 6.58% | - |
| Estimated Monthly Payment | $7,197.81 | $7,582.32 | $8,097.53 |
Sample: 7.91% 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
The 504 rate and resulting 504 payment use Premier Capital’s November 2026 published Other projects rate. The bank and 7(a) assumptions and fees are illustrative, and all values are only 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 an illustrative 9.00% (Prime 7.00% plus 2 percentage points), based on the October 19, 2026 example; it is not a verified November bank quote. The 7(a) comparison uses the same illustrative 9.00% rate. The 504 estimate uses Premier Capital's November 2026 20-year Other projects rate of 6.58%. Qualifying Manufacturing / Rural projects may have a different rate. 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 7.91% 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.