What is an SBA loan?
SBA loans are business loans made by banks and other lenders and partially guaranteed by the U.S. Small Business Administration. The guarantee lets lenders offer longer terms and lower down payments. The two main programs are 7(a), the flexible all-purpose loan, and 504, built for owner-occupied real estate and long-life equipment.
What the program covers
SBA 7(a)
- Up to $5 million
- Business acquisitions and partner buyouts
- Owner-occupied real estate, equipment and working capital
- Refinance of existing business debt
SBA 504
- Owner-occupied real estate and long-life equipment
- Typically 10% down
- Long-term fixed-rate portion through a Certified Development Company
- Tied to job creation or public policy goals
Eligibility
- For-profit U.S. business
- Meets SBA size standards
- Existing buildings: business occupies at least 51%
- Owners of 20% or more personally guarantee
What to have ready
- Three years of business and personal tax returns
- Interim financial statements
- Business debt schedule
- Personal financial statement
From first review to closing
Tell us about it
A short intake or a call. Progress saves as you go.
CPA-led underwriting
We analyze the numbers, structure and documents before anything moves forward.
Term sheet or placement
On select investor programs, qualifying deals receive a term sheet from us. Other financing is structured and presented to sources in our network.
Approval and closing
Final approval, appraisal, title and insurance through funding. Steps vary by program.
Before you apply
Should I use 7(a) or 504?+
504 usually fits owner-occupied real estate and heavy equipment, with a low down payment and long fixed-rate portion. 7(a) is more flexible and covers acquisitions, working capital and mixed-use purposes.
Can an SBA loan buy an existing business?+
Yes. SBA 7(a) is commonly used for business acquisitions and partner buyouts, including goodwill.
Why do SBA loans take longer?+
They require more documentation than conventional loans. We prepare the package up front, so the lender can move as soon as it is submitted.