An SBA loan is a business loan made by a participating lender and partially guaranteed by the U.S. Small Business Administration. The guarantee lowers the lender’s risk, which is why SBA loans often come with longer repayment terms than many other business loans. They also tend to involve more paperwork and a longer review.
Common types of SBA loans
SBA 7(a) loans are the program’s general-purpose option. Proceeds can be used for working capital, equipment, inventory, refinancing certain debt or buying a business. SBA 504 loans are designed for major fixed assets such as commercial real estate and long-lived equipment. Program limits and rules change, so confirm current details with your specialist.
What lenders usually look at
- Time in business and the strength of business cash flow
- Personal and business credit history
- Ownership details and your role in the business
- How the funds will be used and whether the business can repay them
- Collateral, where applicable
Documents to have ready
Expect to provide business and personal tax returns, recent bank statements, a year-to-date profit and loss statement, identification, and information on any existing business debt. Newer businesses may also be asked for a business plan and financial projections. Our secure client portal lets you upload documents as they are requested.
SBA loans vs. other funding
If you need money quickly or your business is very new, other options such as a business line of credit, working capital or equipment financing may fit better. If you can wait for a more involved process in exchange for longer terms, an SBA loan may be worth comparing.
Frequently asked questions
How long does an SBA loan take?
It depends on the program, the lender and how quickly documents are provided. It is generally longer than for non-SBA products.
Can I apply if I am not sure which loan I need?
Yes. Tell us about your business and a specialist will explain the options that may fit, with no obligation.
Funding products, amounts, rates, fees and terms vary and are subject to credit review and approval. Not all applicants will qualify. This page is general information, not a commitment to lend or financial advice.