Skip to content

SBA Loans for Small Businesses

Access government-guaranteed financing to build, grow, or expand your small business with flexible, affordable SBA loans.

What are SBA Loans?

Small Business Administration (SBA) loans are government-backed financing options designed to help entrepreneurs start, grow, or expand their businesses when traditional bank loans might be out of reach. Rather than lending the money directly, the SBA guarantees a portion of the loan, reducing the risk for lenders and allowing them to offer more favorable terms to small business owners. Whether you are looking to purchase commercial real estate, buy out a partner, or simply increase your working capital, SBA loans provide some of the most borrower-friendly protections in the financial market.

Types of SBA Loans

Standard 7(A) Loan

SBA 7(a) loans are the most commonly used loan option for business financing and can be used for acquisitions, start-ups, working capital, expansions, debt refinance, equipment and supplies.

SBA 504 Loan

SBA 504 loans are an option for business owners seeking to buy commercial real estate, equipment, machinery or other major fixed assets.

SBA 504 Debt Refinancing

The 504 debt refinancing program helps business owners with existing real estate loans refinance or consolidate debt, potentially lowering payments and interest rates.

SBA Express Loan

With quick turnaround time, SBA Express loans are a great option to help increase liquidity. These loans can help your business operate or expand when funds are not readily available.

Why Businesses Choose SBA Loans

Lower Down Payments

While many commercial loans often require 20% or more down, many SBA loans allow for down payments as low as 10%. This allows owners to keep their capital for daily operations or emergency reserves.

Longer Repayment Terms

SBA loans offer significantly longer repayment periods than traditional bank loans. These extended timelines result in lower monthly payments, making debt easier to manage alongside other business expenses.

Competitive Interest Rates

SBA loans often have lower interest rates than other types of small business financing. This can save a business tens of thousands of dollars in interest over the life of the loan.

Flexible Lending Criteria

Government guarantees allow lenders to look beyond rigid credit scores. This holistic approach makes it easier for startups and growing businesses to qualify for funding.

FAQs About SBA Loans

1. Who is eligible for an SBA loan?

To qualify, businesses generally must:

  • Operate for profit
  • Be considered a “small business” by SBA standards
  • Have a sound business purpose for the loan
  • Demonstrate the ability to repay
  • Meet industry and location-specific eligibility rules

2. How much can I borrow with an SBA loan?

Loan amounts vary by program:

  • 7(a) loans: Up to $5 million

  • CDC/504 loans: Up to $5.5 million for real estate or equipment

  • Microloans: Up to $50,000

3. What are the typical SBA loan terms?

  • Repayment period: Usually 7–25 years depending on the loan type

  • Interest rates: Often lower than conventional loans, usually variable or fixed

  • Collateral: Some loans require collateral, but it depends on loan size and purpose

4. How long does it take to get an SBA loan?

Approval can take anywhere from 2–8 weeks for most SBA loans, depending on the lender and loan type. The process includes reviewing your business plan, financial statements, and personal credit.

5. Can I use an SBA loan for working capital?

Yes! Many SBA loans, especially the 7(a) program, are ideal for working capital, helping you manage cash flow, cover payroll, or purchase inventory.

6. Do SBA loans require a personal guarantee?

Most SBA loans require a personal guarantee from owners with 20% or more ownership. This means owners agree to be personally responsible for repayment if the business cannot pay.

7. Do business lines of credit require collateral?

It depends on the lender. Some business lines of credit are unsecured, with no collateral required, but lenders may review your credit history and financial stability more closely. Secured lines of credit do require collateral—such as equipment, inventory, or accounts receivable—which can help you qualify for higher limits or lower interest rates.

Take the Next Steps for Your Business

Our team is ready to help you explore your financing options and find the term loan that fits your goals.

Learn More