SBA Loans -- Compare Programs and Apply

Government-backed financing with the lowest rates available to small businesses

SBA Loan Programs

SBA 7(a) Loans

Up to $5M for general business purposes. Most popular SBA program.

Max Amount: $5,000,000
Typical Rate: Prime + 2.25% - 4.75%
Terms: Up to 25 years
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SBA 504 Loans

Fixed-rate financing for real estate and major equipment.

Max Amount: $5,500,000
Typical Rate: 5.0% - 7.0% (fixed)
Terms: 10 or 20 years
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SBA Microloans

Up to $50,000 for startups and small businesses.

Max Amount: $50,000
Typical Rate: 8.0% - 13.0%
Terms: Up to 6 years
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SBA Express Loans

Faster approval with up to $500,000 available.

Max Amount: $500,000
Typical Rate: Prime + 4.5% - 6.5%
Terms: Up to 25 years
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Featured Lender

Lendmate Capital

Business Loans $5K-$5M, Same-Day Decisions, 550+ Credit Score

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SBA Loans by Your Situation

Twelve scenario-specific guides — each with its own 2-minute quiz, program recommendations, and editorial depth for the situation that fits you.

New to SBA? Start with the complete SBA loan requirements guide — credit, time in business, equity, citizenship, and the full documentation list.
See SBA loan requirements →
By qualification scenario
Bad credit No collateral After bankruptcy Self-employed
By business type
Startups Franchise Business acquisition All requirements
By demographic
Veterans Women-owned Minority-owned
By circumstance
Disaster recovery

SBA Loans by Your Industry

Industry-specific guides backed by proprietary stats from the SBA FOIA 7(a) dataset. Each page covers the dominant use cases, charge-off performance, top lenders, and state concentration for that industry.

Food service
Restaurants
16,355 loans, $8.6B approved. Acquisition-heavy deals with favorable 0.89x charge-off ratio.
Medical & veterinary practices
Dental practices
Avg deal $910K. 0.20x charge-off ratio — one-fifth the SBA average.
Physician practices
Specialty mix and payer concentration drive underwriting. 0.50x charge-off ratio.
Chiropractic practices
Smaller deals than dental/physician (median $150K). Payer mix matters.
Veterinary practices
SBA's best-performing category. 0.13x charge-off ratio, +40% YoY growth.
Automotive
Auto repair shops
Mechanical repair. +27% YoY, equipment-strong collateral.
Auto body shops
Collision repair. DRP relationships with insurance carriers drive revenue.
Construction trades & building services
Plumbing & HVAC
Largest single-trade SBA category. Licensing and fleet collateral dominate.
Landscaping
Equipment-heavy, seasonal working capital story. Recent volume softening.
Specialty trades
Welding, painting, site prep, demolition. Bonding capacity matters.
Building services
Commercial cleaning, pest control. +33% YoY, B2B contract revenue.
Personal, child & pet services
Child care
Facility + licensing heavy. 0.38x charge-off ratio, +17% YoY growth.
Pet care
Boarding, grooming, daycare. 27% franchise-heavy, recession-resistant.
Personal care (medspa / wellness)
Medspas, nail salons, skincare, wellness. 28% franchise, equipment-heavy.
Beauty salons
Hair salons specifically. Smaller deals (median $80K); 1.14x charge-off ratio.
Professional services
CPA firms
Licensed-CPA firms. Book-of-business valuation, 0.35x charge-off ratio.
Accounting & bookkeeping
Non-CPA services. Fastest-growing category at +49% YoY.
Insurance agencies
Book-of-business acquisitions. Residual-revenue underwriting.

How to Qualify for an SBA Loan

SBA loans have specific eligibility requirements set by both the Small Business Administration and individual lenders. Meeting these baseline criteria is the first step toward securing government-backed financing for your business.

Time in Business

Most SBA lenders prefer businesses that have been operating for at least two years, though some programs like SBA Microloans are available to newer businesses and startups. A longer operating history demonstrates stability and increases your chances of approval.

Credit Score

While the SBA does not set a minimum credit score, most lenders look for personal credit scores of 650 or higher for standard 7(a) and 504 loans. SBA Microloans may have more flexible credit requirements. A higher credit score will help you secure better rates and terms.

Annual Revenue

Lenders need to see that your business generates enough revenue to cover the loan payments. Most require proof of consistent revenue, typically through two years of business tax returns and recent financial statements. Your debt service coverage ratio, which compares net operating income to debt payments, should generally be at least 1.25:1.

Business Plan and Purpose

You must demonstrate a clear, legitimate business purpose for the loan funds. The SBA requires that borrowers have a sound business plan and that funds will be used for approved purposes such as working capital, equipment, real estate, or refinancing existing debt.

The SBA Loan Process

1

Assess Eligibility

Review SBA size standards and lender requirements for your industry.

2

Gather Documents

Prepare tax returns, financial statements, business plan, and legal documents.

3

Choose a Lender

Compare SBA-approved lenders based on rates, terms, and experience.

4

Submit Application

Complete the SBA loan application and provide all required documentation.

5

Get Funded

After approval, complete closing and receive your loan proceeds.

Frequently Asked Questions

What is an SBA loan?
An SBA loan is a small business loan partially guaranteed by the U.S. Small Business Administration, which reduces risk for lenders and allows them to offer more favorable terms to borrowers. SBA loans are issued by approved partner lenders, including banks, credit unions, and online lenders, rather than by the SBA itself. The government guarantee typically covers 50% to 85% of the loan amount, which makes lenders more willing to approve businesses that might not qualify for conventional financing.
Who qualifies for an SBA loan?
To qualify for an SBA loan, your business must operate for profit within the United States, meet the SBA's size standards for a small business, and have exhausted other financing options. Most lenders look for at least two years in business, a credit score of 650 or higher, and annual revenue sufficient to cover loan payments. Startups may qualify for SBA Microloans or 7(a) loans with a strong business plan and relevant industry experience.
What are current SBA loan rates?
SBA 7(a) loan rates are typically prime plus 2.25% to 4.75%, depending on the loan size and term. SBA 504 loan rates for the CDC portion are fixed and generally range from 5% to 7%. SBA Microloan rates fall between 8% and 13%. These rates are generally lower than conventional small business loans because of the government guarantee that reduces lender risk.
How long does SBA loan approval take?
The SBA loan approval process typically takes 30 to 90 days from application to funding, depending on the loan type and lender. SBA Express loans can be approved within 36 hours because of a streamlined review process. Standard 7(a) and 504 loans require more documentation and underwriting, which extends the timeline. Working with an experienced SBA lender and having all documents prepared in advance can significantly speed up the process.
What is the difference between SBA 7(a) and 504 loans?
SBA 7(a) loans are the most versatile, allowing funds to be used for working capital, equipment, inventory, or real estate, with loan amounts up to $5 million. SBA 504 loans are specifically designed for major fixed assets like commercial real estate and heavy equipment, with a structure that involves a bank, a Certified Development Company, and the borrower. The 504 program offers lower down payments and fixed rates on the CDC portion, making it ideal for businesses looking to purchase property or expand facilities.
Can startups get SBA loans?
Yes, startups can qualify for certain SBA loan programs, particularly SBA Microloans (up to $50,000) and some 7(a) loans. However, startups face higher scrutiny and typically need a strong business plan, relevant industry experience, good personal credit, and some form of collateral or personal investment. The SBA Microloan program is often the best entry point for new businesses because it has more flexible requirements and provides mentoring resources through intermediary lenders.
What collateral is needed for an SBA loan?
The SBA requires lenders to collateralize loans to the maximum extent possible, which typically means pledging business assets and sometimes personal assets. For loans under $50,000, no specific collateral may be required beyond a personal guarantee. For larger loans, lenders will generally take a lien on business assets, equipment, or real estate. If business assets are insufficient, the lender may require personal assets such as home equity as additional collateral.
What fees are associated with SBA loans?
SBA loans include a guarantee fee that ranges from 0% to 3.75% of the guaranteed portion, depending on the loan amount and term. There is also an annual servicing fee of approximately 0.55% of the guaranteed balance. Lenders may charge additional closing costs, packaging fees, and third-party expenses such as appraisals and environmental reviews. Despite these fees, the total cost of an SBA loan is typically lower than conventional alternatives due to favorable interest rates and longer repayment terms.

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