FAQ

An SBA loan is a small business loan partially guaranteed by the U.S. Small Business Administration (SBA). The SBA doesn’t lend money directly — instead, it works with approved banks and lenders to make financing more accessible to small businesses.

SBA loans can fund a wide range of business needs, such as:

• Working capital
• Equipment and inventory purchases
• Business expansion or acquisition
• Commercial real estate (buying or renovating)
• Refinancing existing debt

Loan Terms:
Up to 10 years for working capital or equipment
Up to 25 years for real estate

Interest Rates:
Generally variable, based on the Prime Rate + margin (often 10–13% as of 2025)
504 loans often offer lower fixed rates (6–7%)

Typically 10–20%, depending on the loan type, business financials, and risk level. Startups and special-purpose properties may require a higher down payment.

SBA 7(a): About 30–90 days
SBA 504: 60–120 days (more paperwork)
SBA Express: 1–3 weeks

To qualify, a business must:

• Operate for profit in the U.S.
• Meet SBA size standards (small business by industry)
• Have reasonable owner equity investment
• Show ability to repay the loan from cash flow
• Have no delinquent government debt (e.g., student loans, taxes)

Collateral is required if available, but lack of collateral alone won’t disqualify you. Real estate, equipment, or other business assets can be pledged, depending on loan size and type.

• Lower down payments
• Longer repayment terms
• Competitive interest rates
• Easier qualification for newer or growing businesses
• Government backing increases lender confidence

Yes. Ineligible businesses include:

• Speculative real estate investment
• Gambling, pyramid sales, or illegal activities
• Non-profit organizations
• Passive income ventures (e.g., rental-only property)

Yes — if it improves your business’s cash flow or debt structure, you can use a 7(a) loan to refinance high-interest or short-term debt.

Yes, though it’s more challenging. Startups typically need:

• A solid business plan and projections
• Relevant industry experience
• Personal investment (at least 10–20%)

We can secure you alternative financing. Just submit your business information and we can see if we can make something happen for you and your business.