/ Product / SBA Loan

SBA Loan

How a SBA-Backed Loan Helps Small Businesses Weather Hard Seasons & Changing Financial Situations

Apply Today

Funding Amount

$100,000 to $5,000,000

Payment Terms

10-25 years

You Get Funds

2 weeks - 1 month average

What is a SBA Loan?

A Small Business Administration (SBA) loan is a type of business financing provided by participating banks and lenders, not by the SBA itself. The SBA is a U.S. government agency that supports small businesses by partially guaranteeing a portion of certain loans made by approved lenders, which can help reduce risk for the lender.

While the SBA establishes program guidelines, all loan terms — including interest rates, repayment schedules, collateral requirements, and credit decisions — are determined by the individual lender. Borrowers remain fully responsible for repayment of the loan in accordance with the lender’s terms.

How Does a SBA Loan Work?

When a business applies for an SBA-backed loan, the lender evaluates the application and, if approved, issues the loan directly to the borrower. The SBA provides a partial guarantee to the lender, which may help facilitate approval for qualified borrowers.

Borrowers are required to make all payments on time and in full. Failure to do so may result in late fees, penalties, collection actions, or default, consistent with the lender’s loan agreement. The SBA does not make payments on behalf of borrowers and does not eliminate borrower responsibility in the event of financial hardship.

The Advantage

SBA-backed loans are designed to reduce risk for participating lenders, which may expand access to capital for qualified small businesses. As a result, borrowers may benefit from longer loan terms, improved affordability, and increased borrowing capacity compared to some traditional financing options.

What Can a SBA Loan Be Used For?

SBA-backed loans may be used for a variety of eligible business purposes, subject to SBA program guidelines and lender approval. Common permitted uses include:

Working capital and operational expenses
Purchasing or refinancing owner-occupied commercial real estate
Equipment, machinery, and furniture purchases
Business acquisition or expansion
Leasehold improvements and renovations
Inventory and supplies
Refinancing certain existing business debt, when permitted

Use of funds varies by SBA loan program and lender requirements. Borrowers should review all applicable restrictions and eligibility guidelines with their lender prior to closing.

Woman with glasses and a pen in her hand smiling

Why Choose a SBA Loan?

SBA-backed loans can offer advantages for qualified businesses, including:

Longer repayment terms compared to some conventional loans
Competitive interest rates, subject to lender underwriting
Lower down payment requirements for certain loan programs
Flexible use of funds, depending on the loan type

While SBA loans may be more accessible for some businesses, approval is not guaranteed. Borrowers must meet lender and SBA eligibility requirements and remain fully responsible for repayment under the loan agreement.

Important Disclosure

This website does not offer, originate, or fund SBA loans. All SBA loans are made by independent lenders and are subject to lender approval and SBA program requirements. The SBA provides a partial guarantee to lenders and does not guarantee repayment on behalf of borrowers.

How Much Does SBA Loan Let You Borrow?

Due to the mitigated risk with SBA-backed loans, the amount that can be borrowed is considerably higher. If you are approved for a SBA-backed loan, the borrowing amount can be anywhere from $100,000 to $5,000,000 million.

To qualify for a SBA loan though, you will need to have a credit score of 620+, have been in business for over 2+ years, and have a monthly revenue of at least $10,000 minimum to be considered.

What Criteria Is Needed to Qualify?

There are a few points of criteria that you will need to meet to be successfully approved for a SBA Loan.

Credit Score

620+

Time In Business

2 years+

Monthly Revenue

$10,000 minimum

How Quickly Do You Get Funds From a SBA Approval?

With SBA loans, the approval process and time that goes into documentation is much longer than other types of loans. This is due to the nature of the guarantee that a SBA loan provides the lender and the borrower, so certain criteria must be looked into and met. Most applicants will receive their funding in 2-weeks to a 1-month on average.

Apply Now

Business man learning about SBA payment terms

What Are The Payment Terms?

Unlike other lending types, SBA loans have much longer payment terms. Repayments are made over 10-25-year terms. The actual repayment term that you receive when you are approved is determined by the amount of money that is being borrowed and how much revenue your business earns every month.

Helping Small Businesses Access Affordable Financing Solutions.

Get Approved