SBA Loans
Government-backed financing with the lowest rates available to small businesses. We connect you with SBA-approved lenders for 7(a), 504, and Express programs.
Government-Backed, Best Rates Available
SBA loans are partially guaranteed by the U.S. Small Business Administration, enabling lenders to offer lower rates and longer terms than any conventional loan product. The application process is more rigorous, but the terms — including rates starting near prime — make it the gold standard for qualified businesses.
Who Qualifies?
- 2+ years in business (preferred)
- 680+ personal credit score
- U.S.-based for-profit business
- Demonstrated ability to repay
- No recent bankruptcies or federal tax liens
Creditworthy businesses planning long-term investments
SBA loans are best for businesses that have time to plan — the process takes weeks, not days. The payoff: rates and terms you will not find anywhere else. Real estate, major equipment, acquisitions, and business buyouts are ideal use cases.
Three programs, very different fits
SBA isn't one product — it's three with materially different rate caps, loan sizes, and use cases. Picking the right program matters more than picking the right lender within a program.
| Program | Loan Size | Max Term | Typical APR | Funding Speed |
|---|---|---|---|---|
| SBA 7(a) | $30K–$5M | 25 yr (RE) / 10 yr | 9.75–13.25% | 45–90 days |
| SBA 504 | $125K–$5M+ | 10/20/25 yr | 7.5–9.5% (debenture) | 60–120 days |
| SBA Express | $5K–$500K | 10 yr | 11.50–14.75% | 15–36 days |
| SBA Microloan | $500–$50K | 7 yr | 8–13% | 30–90 days |
Most flexible SBA program. Working capital, equipment, real estate, business acquisitions, debt refinancing, partner buyouts. Fixed or variable rate. Can be unsecured up to $25K, partially collateralized above. The default SBA loan when use case is general.
Specifically for fixed assets: real estate, large equipment, building improvements. Two-loan structure (50% bank + 40% CDC + 10% borrower equity). Lowest fixed rates in small business finance. Cannot be used for working capital or inventory.
Streamlined 7(a) variant. Faster underwriting (15–36 days vs 45–90), capped at $500K. Higher rate cap (Prime + 6.5% vs Prime + 4.75%). Best when speed matters and amount is moderate. SBA guarantees only 50% (vs 75–85% for standard 7(a)).
Who SBA approves — and who they don't
SBA eligibility is more granular than "680 FICO + 2 years TIB." The rules below come directly from SBA Standard Operating Procedures (SOP 50 10) plus lender-channel underwriting overlays.
- Personal FICO680+ minimum
- Time in business24+ months
- Annual revenue$120K+ typical
- Debt service coverage1.15× min
- U.S. for-profit entityRequired
- Personal guarantee 20%+ ownersRequired
- FICO 720+ — rate at the bottom of the range, faster underwriting
- 5+ years in business — SBA prefers established operators
- Profitable last 2 years — tax returns must show net income
- Real estate collateral — primary or investment property significantly improves terms
- Clean debt schedule — minimal existing debt, no MCAs in last 6 months
Real estate investment firms, lending businesses, life insurance companies, multi-level marketing, religious organizations, businesses primarily engaged in political/lobbying activity, businesses with principals on parole, marijuana-related businesses, and any non-U.S. citizen non-LPR ownership above 50% are SBA-ineligible. Some "passive income" businesses (rental real estate held for investment, not operated) are also ineligible.
$500K SBA 7(a) loan, worked end-to-end
A typical $500K SBA 7(a) loan for a business acquisition. 10-year term. Variable rate at WSJ Prime + 2.75% (currently 6.75% + 2.75% = 9.50% APR). 1.5% SBA guarantee fee on the guaranteed portion.
| Component | Detail | Amount |
|---|---|---|
| Loan amount | Approved principal | $500,000 |
| SBA guarantee fee | 1.50% × 75% guaranteed portion | $5,625 |
| Lender packaging fee | Typical 1–2.5% of loan | $7,500 |
| Closing / appraisal / title | Third-party costs | $3,500 |
| Total fees | Paid at closing or financed | $16,625 |
| Monthly payment | 120-month amortization @ 9.5% | $6,468 |
| Total payments over term | 120 × monthly | $776,206 |
| Total interest paid | Total payments − principal | $276,206 |
| Total cost of capital | Interest + all fees | $292,831 |
SBA loan questions, answered
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