Prime plus two to three, for as long as twenty-five years.

A federal guarantee on part of the loan is the whole reason the pricing works. It takes thirty to ninety days, and when nothing is expiring that wait is the cheapest decision an owner can make.

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Amount
$50,000 – $5,000,000
Rate
Prime + 2–3%
Term
5–25 years
Speed
Typically 30–90 days
Cost to apply
$0

SBA caps the spread a lender may add to Prime on 7(a) loans. That cap is public; your actual rate depends on size and term.

What it is

An SBA loan is made by a bank or lender with a portion guaranteed by the Small Business Administration. The guarantee lowers the lender’s risk, and the lender passes most of that saving on. The 7(a) program covers working capital and acquisition; 504 covers real estate and major fixed assets.

The reputation for slowness is mostly earned, but not by the agency. Files sit in bank queues behind whatever that bank’s balance sheet prefers this quarter. Packaging the file properly is most of what shortens it.

When it fits

  • You can wait a month or three. Nothing expires. No opportunity closes while the file is in underwriting.
  • The amount is large and the term long. Acquisition, real estate, a build-out you’ll still be using in a decade.
  • Two or more years of filed returns. Plus reasonable personal credit, usually 650 and up.
  • You’re ready to guarantee it personally. Every SBA loan requires it from owners of 20% or more.

What it is not good for

  • Speed. If the money is needed this month, this is the wrong page.
  • Paperwork. Returns, statements, projections, debt schedules, a Form 413 per owner.
  • Collateral. Available business assets get pledged, and on larger files personal real estate can be pulled in.

The part most sites leave out

Questions we get on this one

Can I pay it off early?
Yes, on most of them. Loans under fifteen years carry no prepayment penalty. Fifteen years and over carry a declining penalty for the first three years only.
I was declined for SBA before. Worth trying again?
Often, yes. A decline at one bank isn’t an SBA blacklist, and credit boxes differ more than people expect. Usually the file died on thin packaging or the wrong lender for the industry.
How long does it really take?
Five to ten business days to a term sheet, then two to four weeks through the agency and closing. Complete files at the front end are what move that number.
Is my house at risk?
Not usually. The guarantee is personal, but that isn’t the same as pledging your home. On larger files with insufficient business collateral, the agency’s rules can require a lien on personal real estate.
What actually slows a file down?
Missing pages in bank statements, an unexplained deposit, undisclosed existing debt, and a use of funds that doesn’t read clearly. All four are fixable before we submit.

Common in

Is this the right instrument for you?

That's the advisory question, and it needs your numbers rather than a web page. Send three to six months of statements and we'll tell you which structures your file actually supports.

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