Competitive interest rates and fees comparable to non‑SBA loans
Lower down payments and flexible overhead requirements
Potentially no collateral for certain loan sizes
Support and education through SBA‑connected programs
7(a) Loan Program — The Most Popular Option
The 7(a) program provides broad financing options for:
Working capital
Equipment
Furniture and fixtures
Inventory
Business acquisition
Leasehold improvements
Loans go up to $5 million and can have fixed or variable interest rates based on Prime + allowable lender spread.
504 Loan Program — Fixed‑Rate Funding for Major Assets
504 loans are funded through SBA‑certified development companies (CDCs) and used for:
Large equipment purchases
Owner‑occupied commercial real estate
Construction and expansion projects
These loans offer long‑term fixed rates, generally tied to U.S. Treasury bond yields. Typical 504 rates fall around 6–7%.
Microloan Program — Smaller Loans up to $50,000
Microloans are issued through SBA‑designated nonprofit intermediaries and support:
Startups
Small working capital needs
Equipment and supplies
Nonprofit childcare centers
Typical loan caps: up to $50,000.
While each lender and program has specific guidelines, SBA eligibility generally requires that the business:
Meets SBA size standards
Operates for profit in the U.S.
Has a sound business purpose
Demonstrates ability to repay
Has owners with acceptable credit and character
Recent policy updates (June 1, 2025) added new requirements, including:
Owners and key employees must be U.S. citizens, nationals, or lawful permanent residents
Reinstated personal resources test to ensure borrowers cannot access credit elsewhere
Guiding Small Business Success Since 1990.
