SBA loans: up to $5 million, repaid over as long as 25 years.
Backed by the U.S. Small Business Administration, SBA loans stretch repayment as long as 25 years — so you can borrow serious capital and keep the monthly payment low. Learn exactly how they work, what they cost, and whether you qualify — then compare SBA lenders through Fundur with a single application.
Fundur is a financing marketplace, not a lender. Checking your options is a soft inquiry and won't affect your credit score.
monthly payment $6,340/mo
Illustrative only. Your amount, rate, and term depend on the lender and your business qualifications.
What is an SBA loan?
An SBA loan is a small-business loan issued by a bank or online lender and partially guaranteed by the U.S. Small Business Administration — a federal agency. The SBA doesn't lend the money itself; its guarantee is what unlocks lower rates and longer terms.
When people say they "got an SBA loan," the funds still came from a private lender — a bank, credit union, or online SBA lender. What makes the loan an SBA loan is that the Small Business Administration promises to repay that lender for a large share of the balance if the borrower can't. That promise is called the guaranty.
Because the government absorbs most of the lender's risk, the lender can say yes to businesses it might otherwise decline, and can offer terms a conventional loan rarely matches: lower interest rates, longer repayment periods, and smaller down payments. In exchange, SBA loans follow federal rules on who qualifies, how the money can be used, and how the loan is underwritten — which is why they take longer to fund and ask for more paperwork than fast alternatives like a working capital loan or line of credit.
The result is the best-priced, longest-term financing most small businesses can get — if they meet the requirements and can wait 30–90 days. That one trade-off — lower cost and longer terms in exchange for stricter qualifying and slower funding — is the key to everything below.
The guaranty protects the lender, not you. On a 7(a) loan the SBA backs 85% up to $150,000 and 75% above it. You still repay the full loan — but that safety net is what earns you a lower rate and a longer term.
How do SBA loans work?
Four things shape every SBA loan: who actually lends the money, how your rate is built, how long you have to repay, and what you pledge to back it.
You borrow from a lender, not the government
You apply through an SBA-approved lender — or through a marketplace like Fundur that submits one application to several of them. The lender underwrites and funds the loan; the SBA reviews and guarantees it. For the 504 program, a nonprofit Certified Development Company (CDC) partners with the bank to fund part of the loan. Either way, the SBA sets the rules but never sends you a check.
Your rate is the prime rate plus a lender spread
Most 7(a) loans carry a variable rate built from two parts: a public base rate (usually the Wall Street Journal prime rate) plus a spread the lender adds, which the SBA caps by loan size. When prime moves, your rate moves with it. Some lenders offer fixed rates, and 504 loans use long-term fixed rates tied to Treasury notes. We break the exact numbers down in rates & fees.
Terms are long — up to 25 years
SBA repayment terms are set by what the money is for: up to 10 years for working capital, equipment, and business acquisition, and up to 25 years for commercial real estate. These are among the longest terms in business lending, and the reason SBA monthly payments are so much lower than short-term financing — the heart of the affordability case below.
Most loans need collateral and a personal guarantee
Lenders take available collateral when it exists — real estate or equipment being financed, for example — but the SBA prohibits declining a loan for insufficient collateral alone if the business is otherwise sound. What is almost always required is a personal guarantee from anyone owning 20% or more of the business, making you personally responsible if the business can't repay.
Types of SBA loans
"SBA loan" is an umbrella over several programs. Four cover almost every need — the flagship 7(a), the fast-track Express, the real-estate-focused 504, and the small-dollar microloan.
SBA 7(a)
Up to $5MThe flagship, all-purpose program — working capital, equipment, real estate, refinancing, or buying a business.
- Terms: up to 10 yrs (working capital/equipment), 25 yrs (real estate)
- Guaranty: 85% up to $150K, 75% above
- Best for: most established businesses seeking flexible, low-cost capital
SBA Express
Up to $500KA streamlined 7(a) variant with a faster SBA decision — often within 36 hours — in exchange for a lower guaranty. See what SBA Express lending actually looks like in the data.
- Speed: SBA decision in ~36 hours; less paperwork
- Guaranty: 50% (lender takes more risk)
- Best for: smaller amounts where speed matters most
SBA 504
Up to $5.5MLong-term, fixed-rate financing for major fixed assets — commercial real estate and heavy equipment — via a bank + a CDC.
- Structure: ~50% bank, ~40% CDC, ~10% your down payment
- Terms: 10, 20, or 25 yrs at fixed rates
- Best for: buying or building owner-occupied property
SBA Microloan
Up to $50KSmaller loans through nonprofit intermediary lenders — often the most startup-friendly SBA option.
- Average: around $13,000
- Terms: up to 7 years
- Best for: newer or smaller businesses and working capital
| 7(a) | Express | 504 | Microloan | |
|---|---|---|---|---|
| Max amount | $5 million | $500,000 | $5.5 million | $50,000 |
| Best use | Almost anything | Fast, smaller needs | Real estate & equipment | Startups, small needs |
| Max term | 10–25 years | 10–25 years | 10–25 years | Up to 7 years |
| Funding speed | 60–90 days | 30–45 days | 90–120 days | 30–90 days |
| SBA guaranty | 75–85% | 50% | Debenture-backed | Via intermediary |
The SBA also runs specialized programs — the Working Capital Pilot, Export loans, and Disaster loans. As of 2026, a business can hold up to $10 million combined across 7(a) and 504 loans.
What an SBA loan costs — in brief
SBA loans carry some of the lowest rates in business lending, but the rate is only part of the cost. Here's how your rate is built, and the one fee that surprises borrowers.
How your SBA rate is built
A 7(a) rate isn't a single sticker number — it's a base rate (most often the prime rate, 6.75% as of August 2026) plus a lender spread the SBA caps by loan size. Larger loans get smaller maximum spreads, so the ceiling currently runs from 13.25% on loans of $50,000 or less down to 9.75% on loans over $350,000. Because the formula is public, you can always estimate your own ceiling — and it's why comparing lenders matters, since each sets its spread within the cap.
SBA caps the 7(a) spread by loan size — from Base + 6.5% on loans of $50,000 or less to Base + 3.0% over $350,000 — and lenders set their spread within that cap, so real pricing is often lower. Most lenders use the WSJ prime rate as the base; SBA permits four alternatives — the optional peg rate, SOFR, and the 5- and 10-year Treasury note rates — set out in full on SBA loan rates and fees, along with the current rate ceilings by loan size. Prime changes over time, so variable rates move with it.
The guaranty fee — the cost people miss
To fund the guaranty program, the SBA charges an upfront guaranty fee, which the lender passes to you (it can be financed into the loan). Crucially, it's charged only on the guaranteed portion, not the whole loan — and small manufacturers and veterans can owe $0 in 2026. On top of it, expect ordinary closing costs like appraisal or title on real-estate deals.
| FY2026 calculation | On | Result |
|---|---|---|
| SBA guaranty — 75% above $150,000 | $500,000 | $375,000 |
| Fee rate — $150,001 to $700,000 band | 3.0% | $11,250 |
| Total upfront guaranty fee | on $375K guaranteed | $11,250 |
Charged on the $375,000 guaranteed portion (75% of the loan), not the full $500,000 — and typically financed into the loan rather than paid at closing. The rate is a single percentage set by the loan size band, not a tiered build-up: SBA Information Notice 5000-872051 sets 2% at $150,000 or less, 3% from $150,001 to $700,000, and 3.5%/3.75% above that. $0 for FY2026 for veterans (Express) and small manufacturers borrowing $950K or less.
- One application, spreads compared across lenders.
- See your actual rate, not a national average.
- No credit impact to check.
Why SBA payments are so much lower
The reason business owners choose SBA financing usually isn't the rate — it's the payment. A long term spreads the same loan over more months, so far less comes out of your account each one.
Take the same $500,000. On a typical 5-year business loan, the monthly payment lands near $10,000. Stretch it over a 10-year SBA term and the payment drops to about $6,340 — roughly $3,800 less every month, freeing up cash flow to actually run and grow the business. On a 25-year SBA real-estate loan, it falls further still.
There's an honest trade-off: a longer term means you pay interest for more years, so the total interest over the life of the loan is higher even though each payment is lower. For most businesses, protecting monthly cash flow is worth it — but it's exactly why you should compare the full picture, not just the payment. Use the estimates below as a starting point, run your own figures in the SBA loan calculator, then see real numbers for your situation.
| $500,000 loan | Est. monthly | Typical use |
|---|---|---|
| 5-year term | ~$10,120 | Short-term / conventional |
| 10-year SBA term | ~$6,340 | Working capital, equipment |
| 25-year SBA term | ~$4,200 | Commercial real estate |
Illustrative estimates near a 9% rate to isolate the effect of term length. Actual payments depend on your rate, term, and lender.
Who qualifies for an SBA loan
SBA loans are harder to qualify for than fast alternatives, but the criteria are knowable. Most lenders build a picture from the same signals — here's where you'll want to stand.
The full qualification picture
Lenders weigh these together — a strong business can offset a weaker area. These are general industry guidelines, not Fundur requirements; every lender sets its own criteria.
- Down payment / equity
- None on most 7(a) loans. SBA sets a 10% minimum for start-ups and for a change of ownership; 504 starts at 10% and rises to 15–20% for new businesses or special-purpose property. SOP 50 10 8 · 13 CFR §120.910
- Collateral
- Pledged when available, but the SBA bars declining a sound loan for lack of collateral alone.
- Personal guarantee
- Required from every owner of 20% or more of the business.
- Business standing
- For-profit, operating in the U.S., not delinquent on federal debt, and unable to get similar terms elsewhere.
Businesses the SBA won't finance
- Gambling or businesses earning >⅓ of revenue from gambling
- Lending, finance, and investment firms
- Passive real estate held for investment
- Speculative ventures (e.g., flipping)
- Nonprofits (except certain microloan childcare)
- Businesses of a prurient or illegal nature
What can you use an SBA loan for?
SBA 7(a) proceeds are famously flexible — most legitimate business purposes qualify. These are the most common.
What SBA funds can't do: pay owners a distribution, repay delinquent taxes, fund a passive investment, or cover anything not tied to your operating business. If your need is short-term or unpredictable rather than a planned investment, a line of credit or working capital loan is usually the better tool — which is exactly what the comparison below is for.
SBA loan vs. other business financing
An SBA loan is the lowest-cost option for most borrowers — but not always the right one. Here's how it lines up, and when to reach for something faster.
| SBA Loan | Bank / Term Loan | Line of Credit | Working Capital | |
|---|---|---|---|---|
| Cost | Lowest rates | Low (if you qualify) | Moderate | Highest |
| Terms | Up to 25 years | 1–10 years | Revolving | Months |
| Funding speed | 30–90 days | Days–weeks | Fast | Fastest |
| Qualifying | Strictest | Strict | Moderate | Most flexible |
| Best for | Large, long-term investment | A defined one-time purchase | Ongoing cash-flow gaps | Fast, short-term needs |
Some lenders market a working capital loan as a Merchant Cash Advance (MCA). Structures, rates, and terms vary by lender across Fundur's network.
An SBA loan wins when…
- You're making a large, long-term investment (real estate, acquisition, expansion)
- Lowest possible rate and payment matter more than speed
- You have 2+ years in business and solid financials
- You can wait 30–90 days and gather documentation
Choose something else when…
- You need money in days, not months
- The need is ongoing or unpredictable — a line of credit fits better
- You're under 2 years old or rebuilding credit
- The amount is small enough that speed beats a slightly lower rate
How to get an SBA loan
The SBA process is more involved than a fast loan, but it's predictable. Through Fundur, the first step takes minutes and one application reaches multiple SBA lenders.
Prepare & pre-qualify
Gather financials and check your options with a soft inquiry that won't affect your credit.
1–30 daysApply & underwrite
Submit one application; the lender reviews financials, credit, and collateral.
10–21 daysSBA review
The lender sends the approved file to the SBA for its guaranty sign-off.
5–10 daysClose & fund
Sign closing documents and receive your funds; then repay on schedule.
7–14 daysHow long it actually takes, measured
Those stage estimates are the plan. The SBA’s own loan file shows what happens after approval: across 293,686 loans approved between FY2020 and FY2025, the median gap between approval and first disbursement was 16 days, with only 2.6% disbursing on the day they were approved and 6.3% still waiting after 90 days. That is the wait that begins once you have already been told yes — see the full funding-speed breakdown. (Fundur analysis of the SBA 7(a) FOIA file, as-of 30 June 2026.)
What actually slows things down
Nearly every delay traces back to documentation — missing tax returns, incomplete financial statements, or slow third-party reports like appraisals on real estate. Businesses that assemble their paperwork up front (recent business and personal tax returns, year-to-date financials, bank statements, business formation documents, and a debt schedule) routinely fund weeks faster. Express loans move quickest; 504 real-estate loans take longest.
One application, compared across SBA lenders
SBA terms vary more than most borrowers expect — the same business can be quoted a full point apart. Fundur helps you find the lender with the best offer, without applying to each one separately. Which lenders are active also varies by state: see SBA loans in Texas for a worked example built from SBA’s own lending data.
SBA loan FAQs
How hard is it to get an SBA loan?+
SBA loans are among the harder business loans to qualify for — most lenders look for 2+ years in business, stronger personal credit (often in the high 600s; SBA itself sets no minimum), and cash flow that comfortably covers the new payment (a debt-service coverage ratio above the 1.10:1 SBA minimum). They're worth the effort for the low rate and long term, but if you fall short or need money fast, a working capital loan or line of credit may fit better.
What credit score do I need for an SBA loan?+
SBA does not set one universal consumer credit-score minimum. In practice, participating lenders commonly look for stronger personal credit, often in the high 600s, but their standards vary, and they weigh credit alongside revenue, time in business, and cash flow, so a strong business can offset a middling score. The full credit discussion, including what replaced the SBSS screen in 2026, is on SBA loan requirements.
How long does an SBA loan take to fund?+
Typically 30–90 days. A standard 7(a) loan runs 60–90 days, SBA Express is faster at 30–45 days, and 504 real-estate loans take 90–120 days. The biggest variable is how quickly you provide documentation — prepared borrowers fund noticeably faster.
What are current SBA loan rates?+
SBA sets maximum rates, not set rates. For variable-rate 7(a) loans the ceiling is a base rate — most often the prime rate, 6.75% as of August 2026 — plus a spread the SBA caps by loan size: currently 13.25% on loans of $50,000 or less, down to 9.75% on loans over $350,000. Those are ceilings, and well-qualified borrowers are frequently priced below them. Fixed-rate maximums use different loan-size breakpoints. 504 loans use long-term fixed rates tied to Treasury notes and are often a bit lower for real estate.
How much down payment does an SBA loan require?+
It depends on the use. SBA 504 real-estate loans start at 10% down, rising to 15–20% for new businesses or special-purpose property; buying a business requires at least 10%. Many general 7(a) working-capital loans require no set down payment at all. Lenders may ask for more from newer businesses.
Do SBA loans require collateral?+
Lenders take collateral when it's available — such as the real estate or equipment being financed — but the SBA prohibits declining an otherwise-sound loan solely for a lack of collateral. Nearly all SBA loans do require a personal guarantee from owners of 20% or more.
What can an SBA loan be used for?+
Most legitimate business purposes: working capital, equipment, commercial real estate, buying a business, refinancing higher-cost debt, expansion, and inventory. They can't be used for owner distributions, passive investments, or anything unrelated to your operating business.
What's the difference between SBA 7(a) and 504 loans?+
The 7(a) is the flexible, all-purpose program (up to $5M for almost any business need). The 504 is purpose-built for major fixed assets — commercial real estate and heavy equipment — using a bank plus a nonprofit CDC, with long fixed rates and roughly 10% down. Choose 7(a) for flexibility, 504 for buying property.
Are SBA loans forgivable?+
No. Standard SBA loans (7(a), 504, microloans) must be repaid in full. Loan forgiveness was specific to the temporary pandemic-era PPP program, which has ended. An SBA loan is financing, not a grant.
Is Fundur an SBA lender?+
No. Fundur is a financing marketplace, not a lender. We help you compare SBA lenders in our network with a single application; the lender underwrites, sets your terms, and funds the loan, and the SBA provides the guaranty. Checking your options with Fundur is a soft inquiry and won't affect your credit.
See the SBA options you qualify for
Compare SBA lenders in Fundur's network with one application, see your real rate and payment — not a national average — and move forward with the offer that fits. Checking won't affect your credit.