Thu. Aug 18th, 2022

How SBA helps small businesses get loans

The U.S. Small Business Administration helps small businesses get funding by setting guidelines for loans and reducing lender risk. These SBA-backed loans make it easier for small businesses to get the funding they need.

In order to get an SBA-backed loan:

  • Visit our Loans page to find the loan that best suits your need
  • Enter your Zip Code on Lender Match to find a lender in your area
  • Apply for a loan through your local lender
  • Lenders will approve and help you manage your loan

SBA only makes direct loans in the case of businesses and homeowners recovering from a declared disaster.

SBA partners with lenders to help increase small business access to loans.

SBA partners with lenders to help increase small business access to loans.

Loans for borrowers

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7(a) loans


A group of SBA loans which guarantee portions of the total amount, cap interest rates, and limit fees.Read more about 7(a) loans

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504 loans


Long-term, fixed-rate financing to purchase or repair real estate, equipment, machinery, or other assets.Read more about 504 loans

Man and woman looking at lap top at kitchen table

Microloans


Our smallest loan program, providing $50,000 or less to help businesses start up and expand.Read more about microloans

Benefits of SBA-guaranteed loans

  • Competitive terms: SBA-guaranteed loans generally have rates and fees that are comparable to non-guaranteed loans.
  • Counseling and education: Some loans come with continued support to help you start and run your business.
  • Unique benefits: Lower down payments, flexible overhead requirements, and no collateral needed for some loans.

Stay safe

Protect yourself from predatory lenders by looking for warning signs. Some lenders impose unfair and abusive terms on borrowers through deception and coercion. Watch out for interest rates that are significantly higher than competitors’ rates, or fees that are more than five percent of the loan value. Make sure the lender discloses the annual percentage rate and full payment schedule. A lender should never ask you to lie on paperwork or leave signature boxes blank. Don’t get pressured into taking a loan. Survey competing offers and consider speaking with a financial planner, accountant, or attorney before signing for your next loan.FIND LENDERS

Get $500 to $5.5 million to fund your business

Loans guaranteed by SBA range from small to large and can be used for most business purposes, including long-term fixed assets and operating capital. Some loan programs set restrictions on how you can use the funds, so check with an SBA-approved lender when requesting a loan. Your lender can match you with the right loan for your business needs.

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Working capital


Like seasonal financing, export loans, revolving credit, and refinanced business debt.

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Fixed assets


Like furniture, real estate, machinery, equipment, construction, and remodeling.

Eligibility requirements

Lenders and loan programs have unique eligibility requirements. In general, eligibility is based on what a business does to receive its income, the character of its ownership, and where the business operates. Normally, businesses must meet SBA size standards, be able to repay, and have a sound business purpose. Even those with bad credit may qualify for startup funding. The lender will provide you with a full list of eligibility requirements for your loan. 

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Be a for-profit business


The business is officially registered and operates legally.

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Do business in the U.S.


The business is physically located and operates in the United States or its territories.

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Have invested equity


The business owner has invested their own time or money into the business.

A rejected loan application.

Exhaust financing options


The business cannot get funds from any other financial lender.

SOURCE https://www.sba.gov/funding-programs/loans

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