What Are SBA Loans?
SBA loans are government-backed business loans facilitated through approved lenders (banks, credit unions, and CDFIs). The SBA guarantees a portion of each loan — typically 75–85% — which reduces the lender's risk and allows them to offer terms that would otherwise be unavailable in the private market. A strong business credit score and well-established business credit profile significantly improve your odds of approval and the terms you receive.
The SBA Loan Process
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1
Pre-Qualification (Week 1)
We review your financials, credit, and business plan to identify the best SBA program.
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2
Application Package (Week 1–2)
We help compile your complete application package: tax returns, financials, business plan.
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3
Lender Underwriting (Week 2–5)
The lender and SBA review your application. We manage all follow-up and documentation requests.
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4
Closing & Funding (Week 5–12)
Loan documents signed, SBA authorization issued, and funds disbursed.
Eligible Uses of SBA Loan Funds
- Purchasing or refinancing commercial real estate
- Acquiring an existing business or franchise
- Purchasing equipment or machinery
- Working capital and inventory
- Debt refinancing (in some cases)
- Business construction or renovation
SBA Loan Qualification Requirements
- Personal credit score 680+ (650 minimum for some programs)
- At least 2 years in business (some exceptions for SBA Microloan)
- Profitable or break-even operation
- Debt service coverage ratio (DSCR) of 1.25x+
- U.S.-based for-profit small business
- Owner invested equity into the business
Common lender considerations may include personal credit, debt-service coverage, business history, owner investment, cash flow, collateral availability, and the specific loan purpose. Requirements vary by lender and SBA program.
SBA Loan Programs Compared
| Program | Max Amount | Best For | Max Term |
|---|---|---|---|
| SBA 7(a) | $5M | Working capital, real estate, acquisitions | 25 years |
| SBA 504 | $5.5M | Owner-occupied real estate & equipment | 25 years |
| SBA Microloan | $50,000 | Startups, micro-businesses | 7 years |
| SBA Express | $500,000 | Faster approval needed | 10 years |
| SBA CAPLines | $5M | Revolving working capital | 10 years |
Illustrative example terms shown for demonstration only. Not an offer or guarantee of financing.
Why Use a Broker for SBA Loans?
SBA loans involve extensive paperwork and navigating multiple program options. Our brokers are experienced SBA loan packagers who know exactly which lenders are currently the most active, what documentation is required, and how to present your deal for the best possible outcome. Before applying, use our fundability checklist to confirm your business meets lender expectations across all key criteria.