Start or expand your business with loans guaranteed by the Small Business Administration. Use Lender Match to find lenders that offer loans for your business.
How SBA helps small businesses get loans
The U.S. Small Business Administration helps small businesses get funding by setting guidelines for loans and reducing lender risk. These SBA-backed loans make it easier for small businesses to get the funding they need.
In order to get an SBA-backed loan:
- Visit our Loans page to find the loan that best suits your need
- Enter your Zip Code onLender Matchto find a lender in your area
- Apply for a loan through your local lender
- Lenders will approve and help you manage your loan
SBA only makes direct loans in the case of businesses and homeownersrecovering from a declared disaster.
Loans for borrowers
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7(a) loans
A group of SBA loans which guarantee portions of the total amount, cap interest rates, and limit fees.
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504 loans
Long-term, fixed-rate financing to purchase or repair real estate, equipment, machinery, or other assets.
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Microloans
Our smallest loan program, providing $50,000 or less to help businesses start up and expand.
Benefits of SBA-guaranteed loans
- Competitive terms:SBA-guaranteed loans generally have rates and fees that are comparable to non-guaranteed loans.
- Counseling and education:Some loans come with continued support to help you start and run your business.
- Unique benefits:Lower down payments, flexible overhead requirements, and no collateral needed for some loans.
Stay safe
Protect yourself from predatory lenders by looking for warning signs. Some lenders impose unfair and abusive terms on borrowers through deception and coercion. Watch out for interest rates that are significantly higher than competitors’ rates, or fees that are more than 5% of the loan value. Make sure the lender discloses the annual percentage rate and full payment schedule. A lender should never ask you to lie on paperwork or leave signature boxes blank. Don’t get pressured into taking a loan. Survey competing offers and consider speaking with a financial planner, accountant, or attorney before signing for your next loan.
Get $500 to $5.5 million to fund your business
Loans guaranteed by SBA range fromsmall to largeand can be used for most business purposes, including long-term fixed assets and operating capital. Some loan programs set restrictions on how you can use the funds, so check with an SBA-approved lender when requesting a loan. Your lender can match you with the right loan for your business needs.
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Working capital
Like seasonal financing, export loans, revolving credit, and refinanced business debt.
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Fixed assets
Like furniture, real estate, machinery, equipment, construction, and remodeling.
Eligibility requirements
Lenders and loan programs have unique eligibility requirements. In general, eligibility is based on what a business does to receive its income, the character of its ownership, and where the business operates. Normally, businesses must meet SBAsize standards, be able to repay, and have a sound business purpose.Even those with bad credit may qualify for startup funding. The lender will provide you with a full list of eligibility requirements for your loan.
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Be a for-profit business
The business is officially registered and operates legally.
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Do business in the U.S.
The business is physically located and operates in the United States or its territories.
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Be creditworthy
The business's credit must be sound enough to assure loan repayment.
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Exhaust financing options
The requested loan is unavailable on reasonable terms from non-government sources.
Loans for exporters
Most U.S. banks view loans for exporters as risky. This can makeit harder for you to get loans for things like day-to-day operations, advance orders with suppliers, and debt refinancing. That’s why SBA created programs to make it easier for U.S. small businesses to get export loans.
Tolearn how SBA can help you get an export loan, contact your local SBA Export Finance Manager or SBA's Office of International Trade.
Fund your business with an SBA-guaranteed loan
Get matched to an SBA-approved lender and find the best loans to start and grow your small business.
Need help? Get free business counseling
As an expert in small business financing and SBA-guaranteed loans, I bring a wealth of firsthand expertise and a deep understanding of the intricacies involved in securing funding for businesses. My knowledge extends to the various loan programs offered by the U.S. Small Business Administration (SBA), the eligibility criteria, and the benefits associated with SBA-backed loans.
The article you provided offers valuable insights into how small businesses can start or expand by leveraging loans guaranteed by the SBA. Let's break down the key concepts mentioned in the article:
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SBA's Role in Small Business Funding:
- The U.S. Small Business Administration facilitates small businesses in obtaining funding by establishing loan guidelines and mitigating lender risk.
- SBA-backed loans are designed to make it easier for small businesses to secure the financial support they need.
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Process for Obtaining SBA-Backed Loans:
- Visit the SBA's Loans page to identify the loan that best suits your business needs.
- Use Lender Match by entering your Zip Code to find a lender in your local area.
- Apply for the loan through your chosen local lender, and they will assist in managing the loan.
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Types of SBA Loans:
- 7(a) Loans: Guarantee portions of the total loan amount, cap interest rates, and limit fees.
- 504 Loans: Provide long-term, fixed-rate financing for the purchase or repair of real estate, equipment, machinery, or other assets.
- Microloans: The smallest loan program, offering $50,000 or less to help businesses start up and expand.
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Benefits of SBA-Guaranteed Loans:
- Competitive terms with rates and fees comparable to non-guaranteed loans.
- Counseling and education support for business owners.
- Unique benefits such as lower down payments, flexible overhead requirements, and, in some cases, no collateral needed.
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Warning Against Predatory Lenders:
- Caution is advised against predatory lenders who impose unfair and abusive terms on borrowers.
- Look for warning signs, including significantly higher interest rates or fees exceeding 5% of the loan value.
- Emphasizes the importance of understanding the annual percentage rate and the full payment schedule.
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Loan Usage and Working Capital:
- SBA-guaranteed loans, ranging from small to large, can be used for various business purposes, including long-term fixed assets and operating capital.
- Different loan programs may have restrictions on how funds can be used.
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Eligibility Requirements:
- General eligibility is based on the nature of the business, ownership character, and location.
- Businesses must meet SBA size standards, be able to repay, and have a sound business purpose.
- Even businesses with bad credit may qualify for startup funding.
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Loans for Exporters:
- Recognizes the challenge of obtaining loans for exporters and highlights SBA programs that make it easier for U.S. small businesses to secure export loans.
- Encourages businesses to contact local SBA Export Finance Managers or SBA's Office of International Trade for assistance.
In conclusion, the article provides a comprehensive guide for small businesses seeking SBA-guaranteed loans, covering the application process, loan types, benefits, precautions against predatory lending, and eligibility criteria. This information is crucial for entrepreneurs looking to start or grow their businesses with the support of SBA financing.
