The SBA offers several loan programs. Here's what you need to know:
SBA 7(a) Loan Program The most common SBA loan
Details:
- ●Amount: Up to $5,000,000
- ●Terms: Up to 25 years (real estate), 10 years (equipment), 7 years (working capital)
- ●Rates: Prime + 2.25% to Prime + 4.75%
- ●Down payment: 10-20%
Best For:
- ●Working capital
- ●Equipment purchases
- ●Business acquisition
- ●Debt refinancing
- ●Real estate (owner-occupied)
SBA 504 Loan Program For real estate and major fixed assets
Details:
- ●Amount: Up to $5,500,000
- ●Terms: 10, 20, or 25 years
- ●Structure: 50% bank, 40% CDC, 10% borrower
- ●Fixed rate on CDC portion
Best For:
- ●Purchasing real estate
- ●Building construction
- ●Large equipment with long useful life
SBA Express Faster version of 7(a)
Details:
- ●Amount: Up to $500,000
- ●SBA turnaround: 36 hours
- ●Higher guaranty fee
- ●Same uses as 7(a)
Best For:
- ●When you need SBA benefits faster
- ●Smaller loan amounts
SBA Microloan For small funding needs
Details:
- ●Amount: Up to $50,000
- ●Terms: Up to 6 years
- ●Through non-profit intermediaries
- ●Often includes technical assistance
Best For:
- ●Startups
- ●Very small businesses
- ●Businesses needing mentorship
General Requirements (All SBA):
- ●2+ years in business (flexible for some)
- ●680+ credit score
- ●US-based, for-profit business
- ●Reasonable owner equity
- ●No defaults on government debt