SBA Loan Programs Compared
| Program | Max Amount | Best For | Rates | Terms |
|---|---|---|---|---|
| SBA 7(a) | $5 million | Most business purposes | Prime+2.25–4.75% | Up to 25 years |
| SBA 504 | $5.5 million | Real estate, major equipment | Below market fixed | 10–25 years |
| SBA Microloan | $50,000 | Startups, small needs | 8–13% | Up to 6 years |
| SBA Express | $500,000 | Faster approval (36 hrs) | Prime+4.5–6.5% | Up to 25 years |
| SBA CAPLines | $5 million | Lines of credit | Prime+3.0–4.5% | Up to 10 years |
The most flexible and widely used SBA loan. Can be used for working capital, equipment, real estate, refinancing debt, or purchasing a business. Requires 2+ years in business, 650+ credit score, and proof of inability to get conventional financing on reasonable terms. Apply through an SBA-preferred lender for fastest processing.
Designed for fixed assets — commercial real estate or major equipment purchases. Structure: 50% from a bank, 40% from an SBA Certified Development Company (CDC), 10% down from the borrower. Lowest available rates for real estate purchase. Requires job creation or retention commitment.
1. Find an SBA-approved lender at sba.gov/lender-match. 2. Gather documents: 2 years business/personal tax returns, business plan, financial projections, business license, and any existing business debt schedules. 3. Complete SBA Form 1919 (borrower information). 4. Wait 30–90 days for processing. SBA Preferred Lenders can approve in-house without SBA review — faster timeline.
Frequently Asked Questions
Prior SBA loan default or delinquency on any government debt (including student loans or taxes). Being in a non-eligible industry (gambling, speculation, lending, pyramid schemes). Having adequate resources to fund the business yourself. Criminal history in certain cases. Outstanding federal judgments or debarments.
SBA microloans (up to $50,000) are the most accessible for startups with limited history. Standard SBA 7(a) loans require 2+ years in business. Some SBA lenders make exceptions for well-prepared startups with strong personal credit (720+), significant collateral, and industry experience. A strong business plan and personal investment in the business improve startup SBA loan chances.