SBA 7(a) Business Loan

What is SBA business loan?

The SBA Business Loan Program does not involve the SBA lending directly. Instead, loans are made by SBA approved banks or lenders. A loan becomes an SBA loan when it is guaranteed by the Small Business Administration (SBA). The SBA is a federal agency that guarantees 70%-85% of the loan amount to the bank. If the borrower fails to repay the loan, the SBA pays the guaranteed amount to the bank. This reduces the risk for the bank, allowing them to offer lower interest rates and longer repayment terms. This program is considered one of the best in terms of loan conditions. 

 

Even if you already have an SBA loan, you can still qualify for an additional SBA loan. The SBA loan limit is $5,000,000, and you can receive a free pre-approval within 1-2 weeks.

 

We work with a network and partnerships with over 35 SBA approved or preferred banks and lenders to provide SBA loans. Among the various SBA programs offered by different banks and lenders, we can offer the most suitable terms for you.

✅35+ SBA Preferred & Specialist Lenders

✅ Free
Pre-Qualification

✅ Professional, Personalized Service

✅ Competitive,
Low Fees

* What is prime rate?

 

The prime rate in the United States refers to the basic interest rate applied by banks when lending to the most creditworthy companies. The U.S. prime rate is mainly based on rates announced by leading U.S. banks such as Wells Fargo, Chase, and Citi. These banks typically lead the economy and hold important positions in the financial market, so the prime rates they announce influence the overall interest rate trend in the market. Therefore, the U.S. prime rate has a significant impact on both domestic and international financial markets and is used as the benchmark rate for various financial products such as mortgages and corporate loans.

SBA 7(a) Business Loan :

  • Loan Amount: Up to $5,000,000
  • Unsecured Financing: Up to $350,000 (no collateral required)
  • Variable Annual Interest Rate: Prime Rate + Margin (1.75% – 3.75%)
  • Repayment Term:
      • Business Loans: Up to 10 years
      • Commercial Real Estate Loans: Up to 25 years
  • Funding Timeline: Approximately 2 – 3 months
  • Monthly Payment: Principal and interest payments. The interest rate and monthly payment may change quarterly based on the current Prime Rate.
  • Multiple SBA Loans Allowed: More than one SBA loan may be permitted, with up to four UCC filings, provided the total SBA loan balance does not exceed $5,000,000.
  • Existing COVID EIDL Loans Accepted: Having a COVID EIDL loan does not automatically disqualify you.
  • Business Acquisition: As little as 10% down payment.
  • Commercial Real Estate Purchase: 0% – 10% down payment depending on the situation; in some cases, no down payment may be required. See our SBA Commercial Real Estate Financing page for details.
  • 90-Day Waiting Period: If you already have an SBA loan, you may be eligible to apply for another SBA loan after a 90-day waiting period.

Use of SBA loans:

  • Various types of business working capital
  • Acquisition of a new business: 10% down – See more details
  • Refinancing
  • Expansion or purchase of machinery and equipment
  • Purchase of commercial real estate for business use: 0% – 10% down – See SBA real estate loan details for more information

Basic Qualification Criteria

  • Personal credit score of 650 +
  • Business in operation for at least 2 years U.S.
  • US citizen (Effective March 1, 2026, green card holders are no longer included.)
  • No record of bankruptcy or property foreclosure in the past 3 to 10 years
  • No outstanding tax liens Not currently in default or delinquent on any government loans 

Required Documents

  • Recent 2-3 years of business and personal tax returns
  • Year-to-date (YTD) financial statements: profit & loss, balance sheet
  • Remaining loan schedule (debt schedule)
  • Recent 6 months of bank statements

SBA 7(a) Express Loan Program

The SBA 7(a) Loan Program is the U.S. Small Business Administration’s flagship business financing program. Because the loan is partially guaranteed by the SBA, it offers attractive benefits such as lower down payment requirements, longer repayment terms, and competitive interest rates. As a result, it is one of the most widely used financing options for small business owners.

 

However, the standard SBA 7(a) loan process can be time-consuming. The underwriting process is often more complex, requires extensive documentation, and may take several weeks or even months from application to funding. For Working Capital loans, it is not uncommon for the entire process to take two to three months or longer.

 

To help streamline the process, some SBA-approved lenders offer the SBA Express Loan Program. Under this program, participating banks have greater authority to make credit decisions, allowing for a faster underwriting process and quicker access to funding than a traditional SBA 7(a) loan.

Not all SBA Express programs are the same, however. Loan limits, eligibility requirements, documentation, underwriting guidelines, and funding timelines can vary from one bank to another.

 

We introduce the SBA Express Loan programs offered by our two banking partners and highlight the unique features and advantages of each program.

 

 

 

SBA Express up to $350,000

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    • Funding Timeline: 15–30 Days
    • Interest Rate: Prime + 2.5% to 4.5%
    • Repayment Term: Up to 10 Years
    • No hard pull, soft pull
    • No broker fee

SBA Express up to $150,000

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  • Funding Timeline: Approximately 30 Days
  • Interest Rate: Prime + 3.75%
  • Repayment Term: Up to 10 Years
  • Eligible for Low Revenue Businesses