Get answers to the most frequently asked questions about SBA loans, eligibility requirements, application process, and more.
An SBA (Small Business Administration) loan is a financing option where the government guarantees a portion of the loan, reducing risk for lenders and making it easier for small businesses to qualify for funding. SBA loans typically offer lower interest rates and longer repayment terms than conventional business loans.
The main SBA loan programs include: SBA 7(a) loans (most popular, up to $5M for working capital, equipment, real estate), SBA 504 loans (real estate and equipment, up to $5.5M), SBA Express loans (faster processing, up to $500K), and SBA Microloans (smaller amounts up to $50K).
SBA loan interest rates typically range from 9.5% to 10.5% as of 2025, though rates vary based on loan amount, term, and creditworthiness. SBA rates are generally 2-3% lower than conventional business loans due to the government guarantee.
To qualify for SBA loans, businesses must: be for-profit, meet SBA size standards (typically under 500 employees), operate primarily in the US, demonstrate good character and credit, show ability to repay, and have invested equity. Most industries qualify except gambling, lending, and speculative businesses.
SBA loan approval times vary: SBA Express loans can be approved in 36 hours by SBA (plus lender time), standard SBA 7(a) loans take 30-90 days total, and SBA 504 loans typically take 45-90 days. The lender's underwriting process adds additional time to SBA review.
SBA loans can finance: working capital, equipment purchases, real estate acquisition, business acquisitions, debt refinancing, inventory, and expansion. They cannot be used for: speculation, lending to others, or businesses in prohibited industries.
SBA loan amounts vary by program: SBA 7(a) loans up to $5 million, SBA 504 loans up to $5.5 million, SBA Express loans up to $500,000, and SBA Microloans up to $50,000. The exact amount depends on your business needs, cash flow, and collateral.
SBA loan down payments typically range from 10-15% for SBA 7(a) loans and 10% for SBA 504 loans (borrower contributes 10%, SBA covers 40%, bank covers 50%). Down payment requirements depend on the use of funds and borrower qualifications.
SBA loans may require collateral depending on the loan amount and use. For loans over $25,000, collateral is typically required. The SBA doesn't require collateral to cover 100% of the loan due to the government guarantee, but lenders may require available business and personal assets as collateral.
Yes, SBA loans are excellent for real estate. SBA 7(a) loans can finance up to 90% of real estate purchases with 25-year terms. SBA 504 loans are specifically designed for real estate and equipment, offering up to 90% financing with the SBA funding 40% at below-market fixed rates.
SBA loan calculators provide close estimates based on standard loan formulas, but actual rates and terms may vary based on creditworthiness, collateral, and lender requirements. Our calculators use typical rate ranges and should be used for planning purposes. Always consult with an SBA lender for exact terms.
SBA loan applications typically require: business financial statements (3 years), personal financial statements, business plan, tax returns (business and personal), bank statements, legal documents (articles of incorporation, licenses), and loan application forms (SBA Form 1919, personal history statements).
Use our free calculators to estimate payments and explore your financing options.
SBA Calculators is NOT affiliated with, endorsed by, or connected to the U.S. Small Business Administration (SBA), any federal agency, or any government entity.
This website is privately operated and provides educational financial calculators for planning purposes only. All calculations are estimates and actual loan terms may vary significantly.
Use of our calculators creates no obligation. We may connect you with qualified private lenders, but we do not guarantee loan approval, specific terms, or rates.
This website does not constitute financial, legal, or professional advice. Always consult qualified professionals regarding your specific situation.