Among advantages to borrowers, there are significant savings as shown in the table below.

The following table is based upon a hypothetical $1 million project where 90% financing is provided under the 504 program and the 7(a) program. It assumes in each case that the bank (or non-bank lender) is making the 504 first mortgage loan and the 20- and 25-year 7(a) loans at Prime + 2.75%, and that interest rates remain constant at levels prevailing in June 2008, when the prime rate was 5.00% and the effective rate on 20-year SBA 504 second mortgage loans funded that month was 6.46%.