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.
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.
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 |
Source: SBA program guidance and current market data, May 2026. APR ranges based on WSJ Prime at 6.75% plus regulated maximum spreads. Actual rates depend on loan size, term, and lender.
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)).
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.
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.
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 |
Compare to a non-SBA term loan at the same amount, term, and approximately equivalent credit profile (which would price ~13.5% APR): same $500K over 10 years would cost ~$432K in interest plus ~$15K origination — $155K more than the SBA 7(a). On a 10-year capital deployment, the SBA's 60–90 days of underwriting buys you a six-figure savings.
From submitted application to funded: 45–90 days for SBA 7(a) standard, 15–36 days for SBA Express, 60–120 days for 504. The application stage takes 1–2 weeks. Lender underwriting takes 2–4 weeks. SBA secondary review (when applicable) adds another 5–10 days. Closing and funding take 1–2 weeks. Working with an SBA Preferred Lender Program (PLP) lender removes the SBA secondary review and typically saves 2–3 weeks.
10% for SBA 7(a) standard. 10–15% for SBA 504 (depending on whether the property is special-purpose). 0% can sometimes be structured for working capital uses with strong borrower equity in the business. Business acquisitions: 10–15% buyer equity required. Real estate-only loans: typically 10–25% down depending on property type and borrower strength.
7(a) rates can be either. Most are variable, tied to WSJ Prime + a regulated spread (2.25%–4.75% depending on loan size and term). Fixed-rate 7(a) is available but often slightly higher. SBA 504 debenture portion is fixed at funding (locked at the bond rate, currently 7.5–9.5%). The 50% bank portion can be either. SBA Express follows 7(a) rules but with a higher spread cap (Prime + 6.5%).
SBA 7(a) loans with terms over 15 years have a graduated prepayment penalty: 5% in year 1, 3% in year 2, 1% in year 3 of any prepayment exceeding 25% of the original loan in a year. After year 3, no penalty. Loans with terms 15 years or less have no SBA-imposed prepayment penalty. SBA 504 has a 10-year prepayment penalty schedule on the debenture portion.
Yes — business acquisitions are one of the most common SBA 7(a) use cases. You'll need 10–15% buyer equity, a business valuation supporting the purchase price, and demonstrated cash flow at the target business sufficient to service the new debt (typically 1.15–1.25× debt service coverage ratio). The SBA also requires the seller to carry a portion of the financing in some cases (typically 5–10% standby seller note). Total transaction process: 90–120 days typically.
Yes, when available. SBA requires lenders to take collateral up to the loan amount when the borrower has it. Real estate is preferred. Equipment, accounts receivable, and inventory are also acceptable. Loans under $25K can be unsecured. The SBA does NOT require the lender to collateralize beyond what's reasonably available — under-collateralization alone is not a decline reason if other underwriting is strong. A personal guarantee from owners with 20%+ stake is always required regardless of collateral.
Pick 504 if your use case is fixed-asset only (real estate, large equipment, building improvements). The 504 fixed rate on the debenture portion is materially lower than 7(a). Pick 7(a) if you need any working capital, inventory, debt refinancing, or business acquisition mixed with the asset purchase — 504 is rigidly restricted to the asset itself. Many borrowers stack: 504 for the building purchase, 7(a) for working capital and improvements.
Most common decline reasons: FICO below 680, unresolved IRS tax liens, current or recent bankruptcy (less than 7 years for Chapter 7), federal student loan default, business size exceeding NAICS-based size standards, prior SBA loan default, principals with non-citizen non-LPR status above 50% ownership, businesses in ineligible industries (passive real estate, lending, religious orgs, MLM, marijuana, gambling primary, lobbying primary, life insurance, etc.).
Yes, with restrictions. SBA 7(a) can refinance existing business debt if you can demonstrate the new SBA loan reduces total debt service by 10%+ and/or extends the maturity beyond the original loan. Common targets: high-cost MCAs, expensive working capital lines, conventional bank debt with balloon maturities. Cannot refinance personal debt, SBA loans (except in specific circumstances), debt to insiders/owners, or debt incurred within 6 months. The cash savings from refinancing high-cost debt to 7(a) rates is often the strongest immediate ROI argument for going through the process.
Heavy paperwork. Last 3 years of personal and business tax returns. Last 6 months of business bank statements. Personal financial statement (SBA Form 413). Business debt schedule. Year-to-date P&L and balance sheet. Business plan or projections (especially for acquisitions or major changes). Business formation documents. Lease agreement or property deed. Resume / management qualifications statement. For acquisitions: business valuation, purchase agreement, seller financials. For real estate: appraisal, environmental assessment.
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