--- title: Comparing Interest Rates and Fees Among SBA Loan Types description: Compare interest rates, fees, and repayment terms across SBA 7(a), 504, and Express loans to find the best option for your business. image: https://www.antoninecapital.com/hubfs/P1M1W2D5%20Featured%20Image.jpg --- [Skip to content](https://www.antoninecapital.com/blog/comparing-interest-rates-and-fees-among-sba-loan-types#main-content) [All posts](https://www.antoninecapital.com/blog/all) January 24, 2025 # Comparing Interest Rates and Fees Among SBA Loan Types ![Picture of Luis](https://app.hubspot.com/settings/avatar/2677ba698531767d1a26a9ba6ce0301b) By  Luis  ·  2 minute read   Understanding the costs associated with an SBA loan is critical for making informed decisions. Each loan type—**7(a), 504, and Express**—comes with its own set of interest rates, fees, and repayment terms. In this post, we’ll break down these costs to help you determine which loan aligns best with your business goals. --- ### **SBA Loan Costs: An Overview** SBA loans are known for offering competitive interest rates and flexible terms, thanks to the SBA’s guarantee. However, understanding the differences in costs between the **7(a), 504, and Express loans** is essential for selecting the right financing option. --- ### **Comparing Interest Rates** #### **1. SBA 7(a) Loan Rates** - **Type**: Variable or fixed rates, depending on the lender. - **Typical Rate**: **Prime rate + 2.25% to 4.75%**, depending on the loan size and term. - **Best For**: Businesses seeking versatility in funding. #### **2. SBA 504 Loan Rates** - **Type**: Fixed rates on the CDC portion, with the lender’s portion often variable. - **Typical Rate**: Around **5% to 6%** for the CDC portion, with competitive rates for the private lender portion. - **Best For**: Large, long-term investments in real estate or equipment. #### **3. SBA Express Loan Rates** - **Type**: Variable rates, generally higher due to expedited processing. - **Typical Rate**: **Prime rate + up to 6.5%**, depending on the lender. - **Best For**: Businesses needing fast, short-term funding under $500,000. --- ### **Fees Associated with SBA Loans** #### **1. Guarantee Fees** - **7(a) Loans**: Guarantee fees range from **0.25% to 3.75%**, based on loan size. - **504 Loans**: Typically includes a **1.5% guarantee fee** for the CDC portion. - **Express Loans**: Fees may be reduced for veterans under the **Veterans Advantage Program**. #### **2. Additional Costs** - **Closing Costs**: Includes legal fees, appraisals, and other administrative expenses. - **Servicing Fees**: Applicable to long-term loans like the 504 Loan, covering ongoing maintenance of the loan. --- ### **Repayment Terms and Implications** - **7(a) Loans**: Terms range from **10 years for working capital or equipment** to **25 years for real estate**. - **504 Loans**: Terms are generally **10, 20, or 25 years**, offering lower monthly payments. - **Express Loans**: Shorter terms of **5–10 years**, aligned with their use for immediate needs. --- ### **Choosing the Right SBA Loan** #### **Best For Flexibility** - The **7(a) Loan** offers versatile use cases and competitive rates for a variety of business needs. #### **Best For Long-Term Growth** - The **504 Loan** is ideal for businesses making significant investments in real estate or equipment. #### **Best For Speed** - The **Express Loan** provides quick access to smaller amounts of funding, ideal for short-term or seasonal needs. --- ### **What’s Next?** In our next post, we’ll dive into **veteran-specific perks across SBA loan programs**, including fee reductions and tailored resources. Whether you’re just starting or expanding your business, these insights will help you maximize the benefits of SBA financing. --- If you’re ready to explore SBA loans or need personalized guidance, visit[**AntonineCapital.com**](https://www.antoninecapital.com/). Don’t forget to **sign up for our monthly newsletter** at[AntonineCapital.com/newsletter](https://www.antoninecapital.com/newsletter) for expert insights and updates. Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://www.antoninecapital.com/blog/comparing-interest-rates-and-fees-among-sba-loan-types) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://www.antoninecapital.com/blog/comparing-interest-rates-and-fees-among-sba-loan-types) [twitter icon](https://twitter.com/intent/tweet?url=https://www.antoninecapital.com/blog/comparing-interest-rates-and-fees-among-sba-loan-types) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://www.antoninecapital.com/blog/comparing-interest-rates-and-fees-among-sba-loan-types) [envelope icon](mailto:?body=https://www.antoninecapital.com/blog/comparing-interest-rates-and-fees-among-sba-loan-types) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Luis", "url" : "https://www.antoninecapital.com/blog/author/luis" }, "dateModified" : "2025-01-24T12:15:00.743Z", "datePublished" : "2025-01-24T12:15:00.000Z", "headline" : "Comparing Interest Rates and Fees Among SBA Loan Types", "image" : [ "https://www.antoninecapital.com/hubfs/P1M1W2D5%20Featured%20Image.jpg" ], "mainEntityOfPage" : { "@id" : "https://www.antoninecapital.com/blog/comparing-interest-rates-and-fees-among-sba-loan-types", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject" }, "name" : "Antonine Capital LLC" } } ``` ```json { "@context" : "http://schema.org", "@type" : "Article", "author" : { "@type" : "Person", "name" : [ "Luis" ] }, "datePublished" : "2025-01-24T12:15:00+0000", "description" : "Compare interest rates, fees, and repayment terms across SBA 7(a), 504, and Express loans to find the best option for your business.", "headline" : "Comparing Interest Rates and Fees Among SBA Loan Types", "image" : "https://47755214.fs1.hubspotusercontent-na1.net/hubfs/47755214/P1M1W2D5%20Featured%20Image.jpg", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "Antonine Capital LLC" }, "url" : "https://www.antoninecapital.com/blog/comparing-interest-rates-and-fees-among-sba-loan-types" } ```