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SBA vs. Conventional vs. Portfolio Commercial Loans

Owner-occupant or investor, the right commercial structure varies. Here’s how SBA, conventional, and portfolio compare.

MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740
Quick Answer

SBA (504/7a): low down for owner-occupied, longer terms. Conventional/bank: competitive for strong deals, shorter fixed periods. Portfolio: flexible for unique properties or investors.

Matching structure to deal

Occupying the space? SBA often wins on down payment. Strong, standard investment deal? Conventional/bank pricing. Unusual property or story? Portfolio flexibility. We compare across all three.

Choosing

The best structure balances down payment, rate, term, and prepayment for your property and plan. As a broker we shop multiple commercial lenders to optimize the full package.

FactorSBA / Conventional / Portfolio
Down paymentLow (owner-occ) / 20–35% / Varies
TermLonger / Shorter+balloon / Flexible
Best forOwner-occupants / Standard deals / Unique/investor
DocsExtensive / Standard / Flexible

Frequently asked questions

Is SBA only for small businesses?

SBA serves qualifying small businesses occupying the property — many California businesses qualify.

Which has the lowest down payment?

SBA for owner-occupied properties, often well below conventional commercial requirements.

Can investors use SBA?

SBA is for owner-occupants; pure investors use conventional or portfolio commercial loans.

Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.

Financing a commercial property? Let’s talk.

Talk to a licensed California mortgage broker for a free, no-obligation consultation.