SBA
SBA Loans
Government-backed loans with the lowest rates (US only).
SBA loans are backed by the US Small Business Administration and offer the lowest rates and longest terms available. Simply Approved Business Loans facilitates SBA 7(a), 504, and Express loans from $50,000 to $5,000,000 with terms up to 25 years and rates from 6.5% APR.
Best for
- Real estate purchases
- Long-term expansion projects
- Business acquisitions
- Working capital with low rates
Key features
- Rates from 6.5% APR
- Terms up to 25 years (real estate)
- 10% down typical for 504
- Personal guarantee required
- SBA 7(a), 504, and Express options
How SBA works
SBA loans are not loans from the SBA itself — they are loans from approved lenders that carry an SBA government guarantee (typically 75–85%). The guarantee reduces lender risk, which translates to lower rates and longer terms for borrowers.
There are three primary programs: SBA 7(a) (general purpose, up to $5M, terms up to 25 years), SBA 504 (owner-occupied real estate and large equipment, up to $5.5M, fixed rates), and SBA Express (faster process, up to $500k, lower SBA guarantee).
Underwriting is more intensive than conventional financing — expect to provide 3 years of business and personal tax returns, business plan, debt schedule, and projections. Closing typically takes 30–75 days.
Qualifications
| Time in business | 2+ years preferred |
| Min FICO | 680 |
| Documents | 3 yrs business + personal tax returns, business plan, debt schedule |
| Use of funds | Real estate, equipment, working capital, acquisitions |
Pros
- Lowest rates available (6.5–11%)
- Longest terms (up to 25 years)
- 10% down on 504 vs 25% conventional
- Working capital, real estate, and acquisition all eligible
- Builds long-term banking relationship
Cons
- •30–75 day closing timeline
- •Heavy documentation (3 years tax returns, business plan, projections)
- •Personal guarantee on all owners 20%+
- •Property may require Phase I environmental
Common mistakes to avoid
- Going SBA when you need 24-hour funding
SBA timelines don't fit emergencies. If you need cash this week, use working capital or MCA, then refinance into SBA later.
- Skipping the prepay penalty
SBA 7(a) loans over 15 years carry a 5/3/1 prepayment penalty (5% year 1, 3% year 2, 1% year 3). Plan accordingly.
- Not shopping multiple SBA lenders
Different SBA lenders price differently and have different approval criteria. We submit to multiple lenders to find the best fit.
Real-world scenarios
An associate dentist bought a retiring partner's share via SBA 7(a) — $140k down, $1.26M financed, 10-year term, 11.0% rate.
A manufacturer bought its industrial building via SBA 504 — 10% down ($280k), 90% financed across bank first and SBA debenture, 25-year term, blended rate ~7.2%.
When another product is a better fit
- Business Term Loan →
If you need funding in days, not weeks, and can absorb a higher rate.
- Commercial Real Estate Loans →
For investment (non-owner-occupied) properties that don't qualify for SBA 504.
- Equipment Financing →
For single-asset equipment purchases under $500k where speed matters more than rate.
How to apply
- 01
Pre-qualification consultation
- 02
Submit financials, tax returns, business plan
- 03
Underwriting and SBA approval
- 04
Closing and funding
SBA vs. other funding options
Side-by-side comparison of SBA against the most common alternatives. Use this to decide which structure fits your business stage, cash flow, and use of funds.
| Product | Amount | Term | Speed | Best for |
|---|---|---|---|---|
| SBA This page | $50,000 – $5,000,000 | 5 – 25 years | Funded in 30–60 days | Real estate purchases |
| Term Loan → | $25,000 – $5,000,000 | 1 – 5 years | Funded in 2–7 days | Expansion, renovations, or buildouts |
| CRE → | $250,000 – $25,000,000 | 5 – 25 years | Closes in 30–75 days | Owner-occupied commercial property |
| Equipment → | $10,000 – $5,000,000 | 1 – 7 years | Funded in 3–7 days | Trucking & fleet purchases |
FAQs about SBA
Lead-gen pre-check
See if you qualify for SBA
$50,000 – $5,000,000 · Funded in 30–60 days. Pre-qualification is free and doesn't affect your credit.
Free pre-check
Eligibility checker
No credit pull. No data stored. Instant answer.
Underwriting disclaimer: The eligibility checker is a self-reported pre-qualification tool. It does not constitute an offer of credit or a guarantee of approval. Every funded file goes through full underwriting — including bank statement analysis, business verification, and a credit inquiry whose type (soft or hard) is disclosed before you sign. Final terms, rates, and amounts depend on underwriting and the specific lender or program.
Apply now — funded in 24 hours
Free to apply. No upfront fees. Real underwriters review every file.
Related products
Business Term Loan
Fixed-rate financing for major investments
- Amount
- $25,000 – $5,000,000
- Speed
- Funded in 2–7 days
Commercial Real Estate Loans
Buy, refinance, or build your business property
- Amount
- $250,000 – $25,000,000
- Speed
- Closes in 30–75 days
Equipment Financing
Up to 100% financing for the gear you need
- Amount
- $10,000 – $5,000,000
- Speed
- Funded in 3–7 days
Get funded in as little as 24 hours
$5,000 to $25,000,000. Free pre-qualification. No upfront fees. Same-day decisions for clean files.