SBA Loans
The Small Business Loan that Every Business can Get Behind
Small Business Administration loans are government-guaranteed term loans designed to increase the odds of a small business obtaining funding by reducing the risk taken on by the loan provider.
Loan Amount
$5,000 to $500,000
Interest Rate
Prime+
Term Length
5 to 25 years
Time to Funding
As fast as 2 weeks
Pros
- Longest repayment terms
- Lower interest Rates
- Can be more likely to qualify than a traditional bank loan
- Can address a wide range of business purposes
Cons
- Longer Approval times
- May require collateral
- Lengthy paperwork
- Difficult for startups to qualify
Compare to other loan types
| Loan types | Max amount | Interest rate | Speed |
|---|---|---|---|
| SBA Loan | $5K – $5M | Starting at 7.75% | As fast as 2 weeks |
| Business Term Loan | $25K to $500K | 7 – 30% | As fast as 2 days |
| Business Line of Credit | $5K to over $1M | 7% – 25% | As fast as 1 day |
| Invoice Financing | Up to 100% of invoice value | Roughly. 3% + % per week outstanding | As little as 1 day |
| Equipment Financing | Up to 100% of equipment value | 7% – 30% | As fast as 2 days |
| Short-Term Business Loan | $2.5K – $250K | Starting at 10% | As fast as 1 day |
| Merchant Cash Advance | $5K to $500,000 | As low as 1.15 | As fast as 1 day |
SBA Loans
Finally, Programs from Uncle Sam Every Business Can Agree On
SBA Loans are virtually sought out by every business at one point or another as they are considered to be some of the lowest cost options on the market and can be easier to qualify for than a traditional bank loan – thanks to the U.S. Small Business Administration guaranteeing up to 85% of the loan.
There are a variety of programs that can address almost any business purpose –working capital, refinancing business debt, and purchasing fixed assets. If you have strong credit, good revenues, or simply struggled to get funds from any other lender, then you should consider applying.
Rather than get intimidated by the process, get help from our specialists so you can spend more time on the business.
3 Popular SBA Loan Programs
SBA 7(a) Loan
- Up to $5 Million
- Repayment up to 10 years (working capital loans) or up to 25 years (commercial real estate loans)
- Guaranty fee of 1.7% for loans up to $150,000, and 2.25% for loans greater than $150,000
- Interest Rate: Maximum of 2.75% + Prime Rate (typically between 5-10%)
- Working Capital
- Purchase land
- Cover construction costs
- Purchase or expand an existing business
- Refinance Business Debt
- Purchase equipment or inventory
- Can be used for virtually any business purpose
- Interest Rate capped by SBA
- Longer repayment terms
- Large Amounts of Capital
SBA CDC/504 Loan Program
- Up to $5.5 Million (must put down around 10% of purchase to secure loan)
- Repayment term of 10 or 20 years
- Fees amount to typically 3% of loan amount
- Interest Rate: typically 5-6% but not confirmed until roughly 45 days after closing
- Purchasing an existing building
- Constructing a new facility or renovating an existing facility
- Purchasing land or making land improvements (grading, landscaping, adding parking lots)
- Purchasing long-term machinery
- Refinance debt incurred through the expansion of your business or renovation of your facilities or equipment
- 90% financing
- Longer Loan amortizations
- No Balloon Payments
- Fixed Rates
- Improved Cash flow due to savings
SBA Express Loan
- Up to $350,000
- Repayment up to 10 years (working capital loans) or up to 25 years (commercial real estate loans)
- Guaranty fee of 1.7% for loans up to $150,000, and 2.25% for loans greater than $150,000
- Interest Rate: Maximum of 2.75% + Prime Rate (typically between 5-10%)
- Collateral may be required for loans over $25,000
- Can be used for virtually any business purpose
- Interest Rate capped by SBA
- Longer repayment terms
Minimum Qualifications
- Minimum 620 Credit
- 2 years in business (exceptions exist for startups)
- $50,000 Annual Revenue
- Sufficient business and personal cash flow to service debt
- No Bankruptcies or foreclosures in past 3 years
- No open Tax liens or outstanding collections
- Operating for Profit and located in the U.S.
- No felonies, delinquencies, and/or default on government loans
Documents Needed to Qualify
- Business Bank Statements
- Corporate Tax Returns
- Personal Tax Returns
- Year to Date Financials
- Business Debt Schedule
- Business Plan
- Bank Statements
Ready to See your Options?
It’s free to apply and it won’t impact your credit