SBA Loan Programs
Ideal for real estate, equipment, acquisitions, and working capital when you can afford more processing time and documentation.
How It Works
SBA loans are partially guaranteed by the U.S. Small Business Administration, which allows lenders to give more favorable terms than conventional loans. You won't receive funds directly from the SBA- approved lenders provide the capital, and the SBA backs a portion of the loan. This structure results in longer repayment terms, lower interest rates, and lower down payment requirements compared to traditional bank loans.
Best Use Cases
Owner-occupied real estate: Refinance or purchase commercial property
Major renovations: Build out new space or upgrade facilities
Business acquisitions: Purchase an existing business with favorable terms
Equipment purchases: Purchase vehicles, machinery, or technology
Long-term working capital: Fund growth when you require extended terms
Refinancing debt: Lower payments on existing high-cost loans
SBA 7(a) Loan
SBA 504 Loan
Max Amount: Up to $5 million
Uses: Real estate, inventory, acquisitions, working capital, equipment, refinancing
Down Payment: 10-20% typically
Rates: Prime + 2-3% margin (variable or fixed)
Terms: Up to 10 years (working capital), 25 years (real estate)
Max Amount: Up to $5.5 million
Uses: Fixed assets (renovations, equipment, real estate)
Down Payment: As low as 10%
Structure: 50% lender, 40% CDC/SBA, 10% borrower
Terms: 10, 20, or 50 years (based on asset life)
Qualification Requirements
Minimum Criteria
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Meet SBA size standards (under 500 employees for most industries typically)
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Display ability to repay (positive cash flow)
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Owner must occupy at least 51% of real estate (for CRE purchases)
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Personal credit score of 680+ preferred
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Owner must invest equity (10 to 20% down typically)
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At least 2 years in business (some exceptions for startups)
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Operate as a for-profit business in the U.S.
Documentation Needed
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Financial statements (P&L, cash flow, balance sheet)
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SBA loan application forms
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Resumes of key management
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Personal financial statement
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Business plan and use of funds narrative
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Lease or purchase agreement (If applicable)
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Business licenses and formation documents
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Business and personal tax returns (3 years)
Advantages
Disadvantages
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Lower down payment requirements
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Builds business credit
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Longest repayment terms (Up to 25 years)
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Lowest interest rates available
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Can be used for acquisitions and real estate
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Larger loan amounts than alternative lenders
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Strict eligibility requirements
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Collateral typically required
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Personal guarantee required
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Longer approval process (4-12 weeks typically)
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Extensive documentation required
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Not suitable for emergency funding
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We help entrepreneurs unlock the growth their business deserves with our flexible funding.