SBA 7(a) & 504 Loans
for Senior Housing
Acquisitions
SBA financing is among the most powerful tools available to senior housing buyers, operators, and developers. With as little as 10% down, 25-year amortization, and no balloon payments, SBA 7(a) and 504 loans unlock acquisitions that conventional financing cannot support. Haven connects senior housing borrowers to SBA-experienced lenders across all 50 states.
existing businesses
real estate loans
loan amount
required
Senior Housing Is a
Special-Use Property.
SBA Understands That.
Senior housing — assisted living, memory care, and similar licensed care businesses — is classified as special-use property by most commercial lenders. This means conventional lenders often require 30–40% down, offer shorter terms, and are reluctant to finance the business goodwill component at all. Many simply decline.
SBA financing was built for exactly this gap. The government guarantee reduces lender risk — enabling lenders to offer dramatically better terms than they could extend without it. For senior housing buyers, SBA 7(a) is frequently the only path to an acquisition that is economically viable with a reasonable equity contribution.
SBA 7(a) — The
Versatile Workhorse
The SBA 7(a) is the most versatile and most commonly used SBA program for senior housing acquisitions. Its defining advantage in this asset class: it can finance both the real estate and the business goodwill in a single loan — a capability no other government-backed program provides.
For an assisted living or memory care acquisition where significant business value exists beyond the real estate, the 7(a) is often the only viable government-backed option. It also allows seller financing to count as part of the equity injection — when structured on full standby — reducing the buyer's out-of-pocket requirement further.
85% (loans under $150K)
(~9.75–14.75% as of Apr 2026)
SBA 504 — Fixed Rate
for Real Estate & Equipment
The SBA 504 program offers a compelling alternative to the 7(a) for senior housing acquisitions and construction where the primary need is long-term, fixed-rate financing for real estate and major equipment — without the need to finance business goodwill.
The 504 structure is distinctive: a traditional lender provides 50% of the project cost, a Certified Development Company (CDC) provides 40% at a fixed rate guaranteed by the SBA, and the borrower contributes 10%. The CDC portion carries a fully fixed rate for 20 or 25 years — eliminating rate risk on the largest portion of the project cost.
The 504 is well-suited to senior housing developers and operators acquiring or constructing owner-occupied facilities — where long-term rate certainty and minimal equity are the priority, and goodwill financing is not needed.
SBA Guarantee Fees —
FY2026 (Oct 2025 – Sep 2026)
The SBA publishes updated guarantee fee schedules each fiscal year. Fees below apply to loans approved October 1, 2025 through September 30, 2026.
SBA 7(a)
| Loan Amount | Guarantee Fee |
|---|---|
| Up to $1,000,000 | 0.00% |
| $1,000,001 – $2,000,000 | 1.45% on first $1M + 1.70% on excess |
| $2,000,001 – $5,000,000 | 3.50% on first $1M + 3.75% on excess |
SBA 504
| Fee Type | Rate (FY2026) |
|---|---|
| Upfront guarantee fee | Reinstated for non-manufacturers |
| Annual service fee | 0.209% standard + 0.0025% supplemental |
| Debt refinance w/o expansion | Additional supplemental annual fee |
| Manufacturer borrowers (NAICS 31–33) | Full waiver — upfront and annual |
SBA Policy Changes
Affecting Senior Housing Borrowers
SBA Standard Operating Procedure 50 10 8 introduced several changes relevant to senior housing acquisitions and refinancing. Key items borrowers and lenders should know:
From Introduction
to Closing
Lender Introduction
Haven introduces you to SBA lenders with senior housing experience — not all SBA lenders understand the asset class or want to underwrite it
Pre-Qualification
Lender reviews your credit, personal financial statement, deal structure, and business plan — providing preliminary feedback on deal viability before full application
Full Application
Complete SBA application package — business financials, tax returns, purchase agreement, licenses, business plan, and appraisal. Haven helps you prepare and present
SBA Review & Approval
Lender submits to SBA for guarantee approval. Timeline: 30–90 days depending on lender type. SBA Preferred Lenders can approve in-house — faster closing
Closing & CHOW
Loan closes; funds disbursed. For senior housing acquisitions, state CHOW (change of ownership) and license transfer proceed in parallel — Haven supports navigation
Haven Connects Senior Housing
Borrowers to SBA Lenders
Haven Senior Investments is a capital broker — not a lender or originator. We have no financial interest in which lender or program you choose. Our role is to understand your deal, identify the most appropriate SBA program, and introduce you directly to SBA lenders who have senior housing experience and appetite.
Not all SBA lenders are the same. Many banks participate in SBA programs but rarely close senior housing transactions. Haven's lender network is specifically filtered for senior housing experience — lenders who understand care home licensing, CHOW timelines, and goodwill valuation.
Confidential · No obligation
Haven Senior Investments · Capital Broker · Senior Housing Only
Financing Programs
