What is an SBA Loan?

The U.S. Small Business Administration helps small business owners get funding through SBA loans. With their multiple SBA funding programs, this government agency provides SBA loan guarantees of up to 85% of the loan amount provided through an SBA-approved lender. The three main SBA loan programs let you borrow money for nearly any business purpose—including working capital, purchasing inventory or equipment, refinancing other debts, or buying real estate—through these SBA-guaranteed loans.

$5K - $5M

Maximum Loan Amount

5 - 25 years

Loan Term

Starting at 6.75%

Interest Rates

As fast as 3 weeks

Speed

Things to consider

PROS

  • Lowest down payments
  • Longest payment terms
  • Reasonable interest rates
  • Suitable for a wide range of business purposes

CONS

  • Lengthy Paperwork
  • Longer approval times
  • May require collateral

Most customers who were approved had

Annual Revenue

Over $180K

Credit Score

680

Time in Business

Over 4 years

Compared to other loan types 

Loan TypesMax AmountInterest RateSpeed
SBA Loan$5K - $5MStarting at 6.75%As fast as 3 weeks

Commercial Lending$25K to $5M7% - 30%As fast as 2 days
Invoice FinancingUp to 100% of
invoice value
8% - 30%As little as 1 day
Line of Credit$10K to over $1M7% - 25%As little as 1 day

Merchant Cash Advance$2.5K - $500K1.14 - 1.49As little as 1 day
Business Credit Card$500 - $250K0% - 25%As fast as 7 days