SBA Loans.

The government-backed loan your business needs.

$
Applying is free and won't impact your credit*
Loan Amount
Up to $5 million
Time to Fund
1–2 months after approval
Loan Terms
10–30 years

What is an SBA loan?

An SBA loan is a small business loan partially backed by the government. Contrary to what you might think, the SBA doesn’t actually foot any of the cash. Instead, it establishes the guidelines for loans and then guarantees a portion of those loans. Because lenders have much less risk in the case of a default, they’re more likely to provide funds to entrepreneurs like you.

Your dedicated SBA team.

With a proprietary application platform thanks makes uploading documents fast and easy and a dedicated SBA team on call to answer any questions you have and assist you throughout the funding process, we’ve made it as easy as possible for business owners to access an SBA loan.

SBA eligibility requirements.

To be eligible for a SBA loan, a small business must meet certain requirements defined by the SBA.

You must:

- Meet SBA size standards
- Be a for-profit business
- Do business in the U.S.
- Have reasonable owner equity to invest
- Exhausted other means of financing

SBA loan interest rates.

SBA loan interest rates are some of the lowest in the business; they're based on prime rate, which in turn is influenced by the Federal Funds Rate set by the Federal Reserve.

Historically, the Federal Funds Rate is very low (it reached as high as 16.39% in 1981). If you want to save money on interest on a business loan, you will save the most with an SBA loan.

What types of SBA loans are available to small businesses?

SBA 504 Loans

Use SBA 504 loans for fixed assets, such as land, a building, or machinery.

Interest Rates:

10-year: 4.63%

20-year: 4.51%

Term Length
10-20 years
Max Loan Amount
$5 million


SBA 7(a) Loans

Use SBA 7(a) loans for working capital, debt refinancing, or to purchase business assets.

Interest Rates:

Variable rate: 5.75-8.25%

Fixed Rate: 8.5-11.5%

Term Length
5-10 years
Max Loan Amount
$5 million


SBA Microloans

Use SBA Microloans for working capital, or to purchase inventory or equipment.

Interest Rate:

6-9%

Term Length
Up to 7 years
Max Loan Amount
$50,000

Minimum requirements for a short-term loan.

Credit score
650+
monthly revenue
$8K+
time in business
2+ years
Quickly estimate your funding options.
Time In Business
0 - 6 Months
6 - 12 Months
1 - 3 Years
3+ Years
Monthly revenue
Industry
Credit Score
Business type
Legal partnership
LLC
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Congrats--it looks like you qualify.*

Based on your business information you could qualify for up to $ 52,000 in funding

Funding amount *

$ 36,000 - $ 52,000

*Amount is an estimate only using the information provided Businesses like yours typically receive offers like these.
Compare your funding options today.
Apply now

Many businesses don't qualify for funding for all kinds of reasons. A few factors could include:

Not enough revenue
Not enough time in business
Credit score is too low

*Qualification criteria, rates, and other funding terms will vary depending on the type and location of your business, and upon other factors. This is not a guarantee of funding, and it should not be relied upon as an accurate assessment of the availability or terms of the represented funding products.

How much can I qualify for?

Not sure what you need or what funding options are best for you? Use our simple calculator to get a rough idea of your options with no commitment, and apply when you’re ready.

How to apply for an SBA loan.

Tell us about your business.

Answer a few simple questions and complete the application in minutes.

Submit your application.

We’ll present your application to our marketplace 75+ lenders. Applying is free and won’t impact your credit score.

Compare offers.

Find the funding option with the terms that best fit your small business goals.

Get funded.

Once you accept, funding can hit your bank account in as little as 24 hours.

12+ years of serving small businesses.

Get the answers and the funding you need with support all along the way.

$16+ billion

in small business funding facilitated in the last decade.

4.8 stars

21,000 Trustpilot® reviews.
50% repeat customers.

400,000+

total small business loans funded in the last decade.

FAQs

Find answers to some commonly asked questions about SBA loans.

How to get an SBA loan?

The first step to applying for an SBA loan is choosing what type of SBA loan you want. There are 6 types of SBA loans including CAPLines, a business line of credit. Each type has its own set of advantages you’ll want to consider—from higher loan amounts, lower interest rates, or longer maturities.

After you’ve submitted your loan application to your chosen lender, you may be contacted for further questioning by a loan underwriter. Make sure to answer any questions you receive as quickly as possible so your loan application can proceed.

Typically, a soft underwriting process occurs next, followed by a loan proposal—if the lender initially likes what it sees. A loan proposal outlines the loan’s terms and lists out any additional fees that accompany the loan. Once signed, a more stringent underwriting process begins.

If your application passes through this second round of underwriting, you’ll be sent a commitment letter by the lender. Once signed, you can expect to receive your money in a few months.

Are SBA loans paid for by the government?

No, but they are backed by the US government. Private lenders are responsible for disbursing the entire loan amount to the borrower, and the US government only gets involved if the borrower defaults on the SBA loan. Depending on the loan amount, the SBA may insure up to 85% of the loan, which equates to less risk for lenders. This reduced risk means that lenders are able to offer lower interest rates.

Are SBA loans hard to get?

When compared to other financial products available to small businesses, SBA loans can be considered the most difficult to get mainly because of the eligibility requirements and application length. With underwriting, most lenders can take up to 3 months to approve or deny an SBA loan. With Lendio’s special application process and dedicated SBA team, time to funds can be reduced to as fast as two weeks.

Are SBA loans still available?

Any borrower looking for COVID EIDL loans should be aware that the SBA stopped taking loan applications for this loan due to lack of funding on January 1, 2022. However, borrowers may not have qualified for other reasons, too—such as having too many employees.

All other SBA loans, however, are still available.

Can anyone get an SBA loan?

SBA loans have specific eligibility requirements that businesses and business owners must meet. These include:

  • The business is a for-profit business
  • The business has been in operation for 2 years
  • The business operates, or will operate, in the United States or its territories
  • The business owner must be able to prove that they have used or tried alternative financial resources before seeking an SBA loan
  • The business owner has a reasonable amount of equity in the business
  • Business owner is a US citizen or a valid Visa holder
Do SBA loans have to be paid back?

Yes, SBA loans must be paid back. When a borrower agrees to the loan agreement of an SBA loan, they are agreeing to pay back the loan principal with interest.

SBA grants, however, don’t have to be paid back.

Is an SBA loan forgivable?

No. If an SBA loan is cancelled, collateral used to secure the loan may be liquidated. After liquidation the loan is settled by the SBA and bank.

What is a SBA 7(a) loan?

The 7(a) is one of the most flexible SBA loans. You can use it to:

  • Buy land
  • Cover construction costs
  • Buy or expand an existing business
  • Refinance your existing debt
  • Buy machinery, furniture, supplies, or materials

SBA 7(a) loan amounts.

There are two types of SBA 7(a) loans: SBA 7(a) Standard and SBA 7(a) Small Loan. They have similar rates and terms, but the Small Loan is capped at a maximum loan amount of $350,000.

For SBA 7(a) loans under $350,000, the SBA lender will require collateral of all business assets no matter how small. No personal collateral will be required. For loans over $350,000 or higher, personal collateral will almost always be required.

If you’re looking for a large amount of money, you can access a 7(a) loan for up to $5 million—if you meet all the qualification requirements.

What is a SBA 504 loan?

SBA 504 loans can be a bit more complicated than 7(a)s. Because you must use a 504 to fund a specific fixed asset, a thorough examination of your project costs will come into play. When your loan is funded, the lender will initially cover 50% of your costs and the SBA will cover 40%—which means that you’re responsible for covering at least 10% right off the bat. You’ll also be required to personally guarantee at least 20% of the loan.

You must use an SBA 504 loan to finance fixed assets, although some soft costs can also be included. Examples of qualifying projects include:

  • Buying an existing building
  • Building a new facility or renovating an existing facility
  • Buying land or making land improvements such as grading, landscaping, and adding parking lots
  • Buying long-term machinery
  • Refinancing debt incurred through the expansion of your business or the renovation of your facilities or equipment

There are some cool perks to the SBA 504 loan. For example, you’ll benefit from 90% financing, longer amortizations, no balloon payments, and fixed interest rates.

To qualify for an SBA 504 loan, your business must have a tangible net worth of less than $15 million and an average net income of $5 million or less for the two years before your application.

What is a SBA Express loan?


If you need cash in a jiffy, the SBA Express is the loan for you. Unlike the somewhat slower review processes you might encounter with other SBA loans, SBA Express applications are reviewed within 36 hours. This doesn’t mean that you’ll get access to funds that fast, though—it often takes at least 30 days to fund your SBA Express loan.

SBA Express loan amounts.

You can finance up to $500,000 with an SBA Express loan. If your loan amount is more than $25,000, your lender may require you to secure your loan with collateral. The loan can be used as working capital (5–10 year term), a line of credit (7-year term), or a commercial real estate loan (25-year term).

How much can you borrow from a SBA loan?


The short answer: it depends on what type of SBA loan you take out. The SBA 7(a), CAPLine, and 504 each have a maximum loan amount of $5 million. The next highest is the SBA Disaster Loan, which has a maximum borrowing amount of $2 million.

For the SBA Export Loan, borrowers may be able to borrow as much as $500,000, and for an SBA Microloan, the maximum is $50,000.

When deciding which type of SBA loan to pursue, borrowers should consider both the interest rate and the term length. Loans with longer term lengths typically have lower monthly payments, but this also means that you’ll pay more money in interest over time.

If you have the cash flow to support a higher monthly payment, you may want to consider a loan option with a shorter maturity in order to save money in interest, but the maximum maturity often depends on your plans for the money. If you need the loan to purchase commercial real estate, for example, a 20-year loan maturity may be in your best interest.

Ready for funding?

See what you can qualify for on the Lendio Marketplace.