Since the 1950s, the SBA has had two primary loan programs, the 7(a) and the 504 loan program. As with everything in government, all things must change. At the most recent NAGGLE (National Association of Government Guaranteed Lenders) conference, the SBA announced that effective November 1, 2016, the names of the 7(a) and 504 SBA Loans will be changed.
The 7(a) loan program will now be known as the SBA Loan Advantage Program. This program is designed to assist in financing for start-ups and small businesses. The funding available for this type of loan is $50k to $5m.
The 504 Loan will be known as the SBA Grow Loan Program. This program is only available for real-estate or heavy equipment, and offers long-term financing to acquire fixed assets. The SBA Grow Loan Program is only available for real-estate or equipment, offering long-term financing, and used to acquire fixed assets.
For now, the programs will not have any other changes, except for the names. The official name change announcement may be found here. The SBA expects to roll out the name change over time. If you would like to learn more about SBA loans, below are a few resources for you to explore: