SBA Loans
SBA loans are government-backed financing with some of the most competitive rates and longest repayment terms available to small businesses. The U.S. Small Business Administration guarantees a portion of each loan, reducing lender risk and giving you access to better terms than most conventional financing. Rise helps you navigate the SBA process, from choosing the right program to connecting with approved lenders. Loan amounts up to $5,000,000 with terms up to 25 years for qualified businesses.
Check Eligibility
What Is an SBA Loan?
An SBA loan is a business loan issued by a private lender, typically a bank or credit union, and partially guaranteed by the U.S. Small Business Administration. The SBA does not lend money directly; instead, it guarantees 50% to 85% of the loan amount, which reduces risk for the lender and enables them to offer lower rates and longer terms than they would otherwise.
SBA loans are considered the gold standard of small business financing because of their competitive interest rates (capped by the SBA), long repayment periods (up to 25 years for real estate), and flexible use of funds. However, they come with stricter qualification requirements and longer approval timelines than private alternatives like a short-term loan or merchant cash advance.
The three main SBA programs are the 7(a) loan (general purpose), 504 loan (real estate and equipment), and microloan (up to $50,000 for startups). Use our business loan calculator to estimate costs across programs.
Requirements to Qualify for an SBA Loan
Personal FICO Score
680+
SBA loans have higher credit requirements than most private alternatives. The SBA doesn't set an official minimum, but most lenders require 680+.
Monthly Revenue
Varies by Lender
Revenue must demonstrate your ability to repay the loan over the full term. Lenders evaluate cash flow projections, not just current revenue.
Time in Business
2+ Years
The SBA microloan program accepts startups, but 7(a) and 504 programs strongly prefer businesses with at least 2 years of operating history.
Additional Requirement
Exhausted Other Options
SBA requires that you demonstrate an inability to get comparable financing through non-government sources. You must also operate a for-profit business in the U.S.
SBA qualification is more rigorous than private lending, but the payoff is significantly better terms. Rise helps you understand whether an SBA loan is the right fit or whether a private long-term loan or business line of credit might be faster and more accessible.
How SBA Loans Work
Choose the Right SBA Program
The SBA 7(a) program is the most common, offering up to $5,000,000 for general business purposes. The 504 program funds real estate and large equipment. Microloans provide up to $50,000 for startups and underserved businesses. Rise helps you determine which program fits your needs.
Apply Through an SBA-Approved Lender
You apply through a bank, credit union, or approved lender, not through the SBA directly. The lender evaluates your application and submits it to the SBA for guarantee approval. Preferred Lenders can approve loans in-house for faster processing.
SBA Guarantees the Loan
The SBA guarantees 50% to 85% of the loan amount, depending on the program and loan size. This guarantee reduces the lender's risk, enabling them to offer you lower interest rates and longer terms than conventional business loans.
Receive Funds and Repay Monthly
Once approved, the lender disburses funds to your business account. You repay with fixed monthly installments over the agreed term: up to 10 years for working capital, up to 25 years for real estate. Rates are capped by the SBA to keep costs competitive.
See If You Qualify for an SBA Loan
SBA loans offer some of the best rates and terms available. Find out if your business qualifies. The initial assessment takes less than 5 minutes and won't impact your credit score.
Pros & Cons of SBA Loans
Advantages
Lowest Interest Rates Available
SBA caps interest rates, making these loans among the most affordable business financing products. Rates are based on the prime rate plus a margin set by the SBA.
Longest Repayment Terms
Up to 10 years for working capital, 25 years for real estate. Longer terms mean lower monthly payments and more manageable budgeting.
Large Loan Amounts
Borrow up to $5,000,000 with the 7(a) program. SBA 504 loans can exceed this for major real estate and equipment projects.
Government-Backed Security
The SBA guarantee reduces lender risk, which means lenders are more willing to work with businesses that might not qualify for conventional financing alone.
Flexible Use of Funds
SBA 7(a) loans can fund working capital, equipment, real estate, debt refinancing, and more. The versatility makes them suitable for a wide range of business needs.
Disadvantages
Strict Qualification Requirements
Most SBA lenders require a credit score of 680+, 2+ years in business, strong financials, and proof that you cannot get comparable financing elsewhere. If you don't qualify, a long-term business loan may offer a faster private alternative.
Slow Approval and Funding
SBA loans typically take 30 to 90 days from application to funding. If you need capital within days, a short-term loan or merchant cash advance is significantly faster.
Extensive Documentation
Expect to provide business and personal tax returns, financial statements, a business plan, a personal financial statement, and potentially a collateral schedule. The paperwork burden is substantially higher than private lending products.
Alternatives to SBA Loans
- Private long-term financing with faster approval, days instead of months
- Less documentation required than SBA applications
- Terms up to 10 years with fixed monthly payments
- Higher rates than SBA but more accessible qualification requirements
- Best for businesses that need capital faster than the SBA timeline allows
- Revolving access to funds without a lump sum commitment
- Draw only what you need and pay interest only on what you use
- Lower documentation requirements than SBA loans
- Good for ongoing working capital management and cash flow gaps
- Better when you don't have a single defined use for the funds
- Equipment-specific loans where the asset itself serves as collateral
- Faster approval than SBA 504 for equipment purchases
- No down payment options available with some lenders
- Easier qualification because the equipment secures the loan
- Best when the primary need is a specific equipment purchase
Frequently Asked Questions About
SBA Loans
An SBA loan is a business loan issued by a private lender, such as a bank or credit union, and partially guaranteed by the U.S. Small Business Administration. The SBA guarantees 50% to 85% of the loan, reducing lender risk and enabling better rates and terms for borrowers.
Trusted by Small Businesses Across the USA
Fast Approval
As Little As 2 Hours
Funding Available
$5K to $5M
Businesses Funded
Across All 50 States
SBA Loans in Your State
Available across all 50 states and Washington, D.C. Pick your state to see local programs, qualification specifics, and state-tailored FAQs.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Explore SBA Loan Options
SBA loans offer the best rates and terms for qualified businesses. Let Rise help you navigate the application process and connect with approved lenders.