SBA loans
Partially guaranteed by the federal government, which is why they price the way they do.
| Typical amount | Speed | Typical term | Secured by |
|---|---|---|---|
| $50,000 – $5,000,000 | Typically 30–90 days | 5–25 years | Usually collateralised |
What sba loans actually is
SBA loans are made by banks and lenders, with a portion guaranteed by the Small Business Administration. That guarantee lowers the lender's risk and, in turn, your rate. The 7(a) programme covers general working capital and acquisition; 504 is for real estate and major fixed assets.
They are the lowest-cost and longest-term funding most small businesses can access. They are also the slowest and the most document-hungry, by a wide margin.
When it fits
- You can wait 30 to 90 days and the need is not urgent.
- The amount is large and the term long: acquisition, real estate, major expansion.
- You have two-plus years of filed returns and reasonable personal credit.
- You are prepared to personally guarantee and to produce a lot of paperwork.
When to think twice
- Speed. If you need money this month, this is not the product.
- Documentation is extensive: returns, statements, projections, debt schedules.
- Most programmes require a personal guarantee, and often collateral.
The honest version
See what you qualify for
Four minutes, a soft credit check, and a real answer, including when a different instrument suits you better.