Commercial Real Estate Loans can be divided into two types: Permanent Loans and SBA Financing. Permanent Loans are similar to residential mortgages and are often the primary loan for a commercial property. They require a minimum repayment term of five years. SBA Financing offers two main loan programs: SBA 504 and SBA 7A. The SBA 504 program provides long-term fixed-rate financing for owner-occupied small business properties. It is suitable for real estate purchases, refinancing, and certain soft costs. It requires a lower down payment for eligible borrowers. In contrast, SBA 7A is designed for higher-risk loans, such as business and building purchases. It usually has adjustable interest rates tied to the prime rate and higher upfront costs compared to the 504 loan.