SBA loans: types and requirements
SBA 7(a) loans provide up to $5 million through participating lenders for purposes including working capital, equipment, real estate and business ownership changes. SBA: 7(a) loans. Last checked .
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Types of SBA loans
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SBA 7(a) loans
SBA 7(a) loans provide up to $5 million through participating lenders for purposes including working capital, equipment, real estate and business ownership changes. SBA: 7(a) loans. Last checked .
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SBA Express loans
SBA Express is a 7(a) delivery method with a $500,000 maximum and a 50% SBA guarantee. Participating lenders make the credit decision using delegated authority. Revolving lines can run up to ten years. SBA: types of 7(a) loans. Last checked .
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SBA 504 loans
SBA 504 financing supports major fixed assets through a Certified Development Company (CDC) working with a senior lender. The usual SBA 504 limit is $5 million; eligible manufacturing and energy projects can reach $5.5 million. These limits concern the 504 loan, not the total project financing. SBA: 504 loans; eCFR: 13 CFR 120.931. Last checked .
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SBA microloans
SBA microloans provide up to $50,000 through approved community intermediary lenders for small businesses and certain nonprofit childcare centers. The maximum repayment period is seven years. SBA: microloans; eCFR: 13 CFR 120.707. Last checked .
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SBA disaster loans
SBA disaster assistance includes loans for uninsured physical damage and economic injury after a declared disaster. Business physical-damage loans and Economic Injury Disaster Loans (EIDL) generally share a $2 million combined limit. Apply through SBA’s disaster application route. SBA: disaster recovery. Last checked .
SBA loan requirements
Key 7(a) requirements include an operating, for-profit business in the United States that meets SBA size rules, is creditworthy and can reasonably repay. The business must be unable to obtain the desired credit on reasonable terms from other non-government sources. These are starting requirements; the lender must check the full rules for your application. SBA: 7(a) loans. Last checked .
Nonprofits, speculative businesses and many passive investment businesses are excluded from SBA business lending under 13 CFR 120.110. The regulation lists additional exclusions and exceptions; review them with the lender. eCFR: 13 CFR 120.110. Last checked .
How to find SBA lenders
SBA’s Lender Match is a free online tool for connecting small businesses with prospective lenders. SBA: Lender Match instructions (PDF). Last checked .
You describe your business and financing needs on SBA’s site. SBA says it provides a summary of interested lenders after two business days; you can then compare rates, terms and fees and submit a separate application to a lender. SBA: Lender Match. Last checked .
Lender Match is not a loan application and guarantees neither a match nor a loan offer. Personal information submitted there is used to connect you with prospective lenders; participating lenders may also offer conventional loans. SBA: Lender Match. Last checked .
Ask lenders about the interest rate, minimum credit score, cash-flow requirements, fees, prepayment penalties, grace periods and when the lender may demand full repayment. Compare the written terms before applying. SBA: Lender Match. Last checked .
Documents to prepare
Prepare a business plan, requested amount and proposed use of funds, financial projections, credit information and details of possible collateral. SBA also recommends working with a resource partner to organize tax returns and bank statements. The lender supplies the final document checklist. SBA: Lender Match; SBA: financial preparation; SBA: 7(a) loans. Last checked .
Apply to a participating lender, which determines the application package for the loan size, processing method and your circumstances. SBA’s program table requires Form 1919 for Standard 7(a), 7(a) Small and SBA Express loans. SBA: 7(a) loans; SBA: types of 7(a) loans. Last checked .
Interest rates and fees
A variable 7(a) rate is a permitted base rate plus a negotiated spread, limited by loan size. The regulation names prime and SBA’s Optional Peg Rate and allows SBA to authorize alternatives. The ceilings below are percentage-point spreads, not a quote of today’s total interest rate. eCFR: 13 CFR 120.214. Last checked .
Fixed-rate 7(a) loans have separate maximums that SBA publishes periodically. SBA directs lenders to its Fiscal Transfer Agent publications for the current schedule. Ask the lender to identify the applicable fixed-rate ceiling and give you a written rate and fee quote. eCFR: 13 CFR 120.213; SBA: 7(a) terms, conditions and eligibility; SBA: current fixed-rate publications. Last checked .
A lender may pass the upfront SBA guarantee fee to the borrower. It cannot pass on SBA’s annual lender service fee, which is 0.55% of the outstanding guaranteed balance for FY2027 approvals. Ask for an itemized quote identifying other permitted charges. SBA: 7(a) terms, conditions and eligibility; SBA: FY2027 7(a) fee notice (PDF). Last checked .
Questions about SBA loans
What documents do I need for an SBA loan?
Prepare a business plan, requested amount and proposed use of funds, financial projections, credit information and details of possible collateral. SBA also recommends working with a resource partner to organize tax returns and bank statements. The lender supplies the final document checklist. SBA: Lender Match; SBA: financial preparation; SBA: 7(a) loans. Last checked .
Apply to a participating lender, which determines the application package for the loan size, processing method and your circumstances. SBA’s program table requires Form 1919 for Standard 7(a), 7(a) Small and SBA Express loans. SBA: 7(a) loans; SBA: types of 7(a) loans. Last checked .
Can a nonprofit get an SBA loan?
Nonprofits, speculative businesses and many passive investment businesses are excluded from SBA business lending under 13 CFR 120.110. The regulation lists additional exclusions and exceptions; review them with the lender. eCFR: 13 CFR 120.110. Last checked .
SBA microloans provide up to $50,000 through approved community intermediary lenders for small businesses and certain nonprofit childcare centers. The maximum repayment period is seven years. SBA: microloans; eCFR: 13 CFR 120.707. Last checked .
Businesses of any size and most private nonprofits may qualify for physical-damage loans for uninsured disaster losses. Eligible repairs or replacements include real estate, equipment, machinery, fixtures, inventory and leasehold improvements. Expansion or upgrades are generally excluded except building-code requirements and eligible mitigation. SBA: disaster recovery. Last checked .
Do I apply to SBA or a lender?
Apply to a participating lender, which determines the application package for the loan size, processing method and your circumstances. SBA’s program table requires Form 1919 for Standard 7(a), 7(a) Small and SBA Express loans. SBA: 7(a) loans; SBA: types of 7(a) loans. Last checked .
Start with SBA’s CDC directory or a local SBA office. A CDC guides the 504 application and lender financing; discuss the project, its eligibility and the documents required before applying. SBA uses Form 1244 to review 504 eligibility; obtain the current form and required supporting exhibits from your CDC. SBA: 504 loans; SBA: Form 1244 for 504 applications. Last checked .
Apply through an SBA-approved intermediary in your area. The intermediary makes the credit decision and sets the loan terms. Ask it for its document checklist, collateral requirements and an itemized description of any fees; SBA’s borrower overview does not give a universal borrower fee schedule. SBA: microloans. Last checked .
Begin by checking your declaration and applying through the official SBA disaster portal. SBA requires IRS Form 4506-C with each disaster application to authorize release of tax information, including when the applicant is not required to file a federal tax return. Follow the application’s requests for additional records. SBA: disaster recovery; SBA: disaster application tax authorization. Last checked .
Official SBA help
SBA’s Lender Match is a free online tool for connecting small businesses with prospective lenders. SBA: Lender Match instructions (PDF). Last checked .
SBA district offices and resource partners help with business planning and applications. The local-assistance directory includes Small Business Development Centers, SCORE, Women’s Business Centers and Veterans Business Outreach Centers, with free or low-cost counseling and training. SBA: local assistance; SBA: 7(a) loans. Last checked .
Each fact links to the official source checked on the date shown. Confirm the requirements and costs for your application with SBA or the participating lender.