Every individual is eligible for up to $5 Million of SBA guaranteed money, assuming they can get approved for it. If you use an SBA 7a loan, every dollar you borrow goes directly against your guarantee. If you use the SBA 504 product exclusively for real estate and equipment projects, 40% of the total project goes towards your guarantee total.
Last week, I met with an entrepreneur who was given bad advice from her bank. She had just completed a $4.7 real estate project and was (incorrectly) told that her only option was a 7a loan. As a result, she is ready for her next project and has no guaranteed money to use the SBA.
Remember that lenders will almost always prefer to sell you a 7a over a 504. This is because 7a loans are always easier and more lucrative for the lender. But before you jump on their treadmill, think about what is ahead for you and plan accordingly.