SBA loans and other long-term options are built for bigger plans: expansion, buying a location, acquiring a business or refinancing heavier debt. They usually involve more paperwork and more patience, and they can be well worth it. No hard credit pull to start.
SBA 7(a) loans are flexible and can be used for working capital, equipment, buying a business and real estate. SBA 504 loans are designed for major fixed assets like owner-occupied real estate and long-life equipment. Both are made by participating lenders and partly backed by the SBA, and both usually take longer than other options.
By Robbie Garvey, Founder · Last updated
What this means: Loans from approved lenders, partly backed by the SBA, with longer terms.
New to these words? See the glossary. Every decision and every term comes from the lender.
SBA loans are made by participating lenders and partially backed by the U.S. Small Business Administration. That backing helps lenders offer longer repayment periods than many other business products. The SBA sets program rules, and each lender adds its own requirements.
The two programs owners hear about most are the 7(a) program and the 504 program.
SBA 7(a) is the most flexible program. It can be used for working capital, equipment, purchasing a business, refinancing certain debts and buying real estate. It is often the first program owners consider.
SBA 504 is designed for major fixed assets, such as owner-occupied real estate and long-life equipment. It typically involves a bank lender and a Certified Development Company working together. If you invest in flips, rentals or new builds, see our real estate financing page as well.
Other long-term options outside the SBA also exist, and we help you compare them when an SBA path is not the right fit.
These programs tend to suit established businesses with solid financial records, reasonable credit and a clear plan for the funds. Many lenders look for at least two years in business, though some programs consider newer companies with strong plans and experienced owners.
If you need capital in the near term while an SBA application is in process, a line of credit or working capital may help bridge the gap. If credit is holding you back, our credit improvement partner may help you prepare.
Expect to provide business and personal tax returns, year-to-date financial statements, a debt schedule, business licenses, ownership information and a description of how the funds will be used. Real estate and acquisitions require additional items.
SBA loans usually take longer than other options because of the documentation and review involved. We give honest timeline expectations based on your situation and help you get organized early. Our A to Z Funding Prep Checklist is a good place to start.
We help you understand whether an SBA or long-term path fits, prepare a clean package, and connect with lending partners who work with your type of business. Every decision is made by the lender, and you are never obligated to move forward.
Compare line of credit options side by side.
Get the trucks, ovens, units or machines you need. The equipment usually backs the financing.
Investment property loans for flips, rentals and ground-up builds.
Credit shapes the options open to you. See how lenders look at it, check where you stand and find help if you need it.
For most programs, no. Participating lenders make the loans, and the SBA backs a portion of them.
Common uses include working capital, equipment, business acquisition, certain refinancing and real estate.
Some lenders consider startups with strong plans and experienced owners, but most prefer an operating history.
SBA loans involve more documentation and review than many other options.
Applying is free and takes a few minutes. Here is what to expect, step by step.
A short online application, or a call with our team. About the business, what the money is for and how much you have in mind.
My team and I review what you shared and call or text you, usually to ask a few questions and explain what we see.
Usually recent bank statements and your own credit report through our IdentityIQ link. No hard credit pull to start.
We shop your file with lending partners and walk you through any offers, including the total payback.
Take an offer or don't. There is never pressure, and you can stop at any point.
Timing depends on the option and the lender. We'll give you honest expectations once we know your situation. Rather talk first? Book a free 20-minute call.
A short, free application. No hard credit pull to start.
No pressure and no hard credit pulls to start. Tell us where your business stands, and we'll walk the options together.
