An SBA loan is a small business loan partially guaranteed by the U.S. Small Business Administration and issued through approved lenders. That guarantee reduces the lender's risk, which means lower rates and longer terms than most conventional financing — making SBA loans one of the most affordable ways to fund a serious investment.
SBA loan types
SBA 7(a)
The most popular SBA program — flexible funds for almost any business purpose: working capital, expansion, refinancing debt, or buying a business.
SBA 504
For major fixed assets like commercial real estate or large equipment, which serve as collateral for the loan.
Benefits
- Long terms — up to 25 years, keeping monthly payments low.
- Low rates — among the most competitive available to small businesses.
- Large amounts — up to $5 million.
- Refinance existing debt — consolidate higher-cost loans into one lower payment.
How to qualify
| Requirement | Typical minimum |
|---|---|
| Time in business | 2+ years |
| Annual revenue | $120,000+ |
| Credit score | Around 675 |
| Documents | Application, tax returns, financials & bank statements |
Don't qualify, or need money sooner? SBA loans are worth it when you have time and strong credit — but they take longer and ask for more paperwork. If you were declined or can't wait, same-day funding and working capital have easier requirements and fund in days.
Frequently asked questions
What is an SBA loan?
A small business loan partially guaranteed by the SBA and issued through lenders, which allows lower rates and longer terms than conventional loans.
What credit score do I need?
Typically around 675, plus 2+ years in business and $120,000+ in annual revenue. Faster options exist if you fall short.
My SBA loan was declined — now what?
Revenue-based funding, term loans and equipment financing have easier requirements and fund far faster. Get matched to see what fits.