Frequently Asked Questions

  • An SBA loan is a small business loan partially guaranteed by the U.S. Small Business Administration (SBA), designed to help businesses access capital with flexible terms and lower interest rates.

  • The most common SBA loan types include:

    • 7(a) Loan – General-purpose loan

    • 504 Loan – For real estate and equipment

    • Microloan – Small loans up to $50,000

    • SBA Express – Faster approval, lower limits

    • Disaster Loans – For declared emergencies

  • To qualify, you typically need to:

    • Be a for-profit business in the U.S.

    • Have reasonable owner equity investment

    • Show repayment ability

    • Meet SBA size standards

    • Operate in an eligible industry

  • Loan amounts range from $500 to $5 million, depending on the loan type and your qualifications.

  • Most lenders prefer a minimum credit score of 650–680, but exceptions exist depending on cash flow and collateral.

  • Approval can take 1–3 months, though some SBA Express loans may be processed in a few days to a couple of weeks.

  • SBA loans can be used for:

    • Working capital

    • Buying equipment or real estate

    • Refinancing debt

    • Inventory purchases

    • Business acquisition

  • Not always. Collateral is often required for loans over $25,000, but lack of it may not automatically disqualify you.

  • Rates typically range from Prime + 2.25% to 6%, depending on the loan size and term length.

  • Yes, but it’s harder. Startups need a solid business plan, good credit, and sometimes industry experience or personal collateral.