SBA Loans

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 advance maximum Amount

Loan Amount

$5,000 to $500,000

Interest Rate

Interest Rate

Starting at 7.75%

Repayment Frequency

Term Length

5 to 25 years

Processing Time to Fund

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