top of page

An SBA loan is a government-backed small business loan partially guaranteed by the U.S. Small Business Administration (SBA), reducing risk for lenders and making it easier for businesses to qualify. These loans offer competitive, long-term financing—up to $5.5 million—for working capital, real estate, equipment, and debt refinancing, often with lower down payments and no balloon payments. 

Small Business Administration (.gov) +4

Key Types of SBA Loans

  • 7(a) Loans: The primary program, offering up to $5 million for flexible needs like expansions, acquisitions, and working capital.

  • 504 Loans: Used for major fixed assets, such as purchasing commercial real estate or machinery, usually with a 10% down payment.

  • Microloans: Smaller loans, up to $50,000, for startup or expansion costs, often with more flexible requirements.

  • SBA Express Loans: Faster turnaround, offering up to $500,000. 

    Small Business Administration (.gov) +4

Eligibility and Requirements

  • For-Profit Business: The business must be operating for profit in the U.S. or its territories.

  • Size Standards: The company must meet SBA's definition of a "small business".

  • Financial Need: You must demonstrate a need for the loan, which often includes having exhausted other financing options.

  • Personal Guarantee: Owners with 20% or more stake must personally guarantee the loan.

  • Creditworthiness: Lenders will assess your business financials and personal credit history. 

    Citadel Credit Union +1

Why Choose an SBA Loan?
SBA loans are attractive because they typically offer better rates, lower down payments, and longer, more flexible repayment terms compared to traditional bank loans. They are often used for: 

Comerica Bank +1

  • Real Estate: Buying or renovating commercial property.

  • Working Capital: Covering daily operations or seasonal inventory.

  • Equipment: Purchasing machinery.

  • Refinancing: Paying off higher-interest debt. 

    Small Business Administration (.gov) +3

How to Apply
The SBA does not lend money directly (except for disaster loans); instead, you must apply through an SBA-approved lender

bottom of page