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504 vs 7(a), by the data
Since FY2020, lenders funded 373,980 SBA 7(a) loans ($194.9B) and 47,549 504 loans ($47.5B). 7(a) is the volume program; 504 loans are fewer but about 1.9 times larger on average.
By Mario Bailey · Source: SBA FOIA data, as of 2026-03-31
- Loans (FY2020+)
- 373,980
- Total volume
- $194.9B
- Average size
- $521K
- Loans (FY2020+)
- 47,549
- Total volume
- $47.5B
- Average size
- $999K
How they differ
The 7(a) program is the workhorse: far more loans, smaller on average, and flexible enough for working capital, equipment, refinancing, or buying a business. The 504 program is built for owner-occupied real estate and long-term equipment, so its loans are fewer but much larger, with a low down payment and a long fixed rate. The data reflects exactly that split.
By fiscal year
| Fiscal year | 7(a) loans | 7(a) volume | 504 loans | 504 volume |
|---|---|---|---|---|
| 2020 | 42,298 | $22.5B | 7,119 | $5.8B |
| 2021 | 51,856 | $36.5B | 9,676 | $8.2B |
| 2022 | 47,678 | $25.7B | 9,254 | $9.2B |
| 2023 | 57,362 | $27.5B | 5,924 | $6.4B |
| 2024 | 70,242 | $31.1B | 5,993 | $6.7B |
| 2025 | 78,078 | $37.3B | 6,762 | $7.8B |
| 2026 | 26,466 | $14.2B | 2,821 | $3.4B |
Not sure which fits? The eligibility and program checker recommends one based on your use of funds, and how SBA loans work explains both in plain language.
Mario Bailey. (2026). 504 vs 7(a): how the two SBA programs differ. SBA Loan Index. https://sbaloanindex.com/studies/504-vs-7a-by-the-data/
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