SBA Loans for Small Businesses — Low Rates, Long Terms

SBA Loan at a glance

Typical amount

$50,000 – $5,000,000

Typical term

5 – 25 years

Variable APR

Prime + 2.25% – Prime + 4.75%

Minimum time in business

2 years

Minimum credit score

650+

Common uses for a SBA Loan

• Business acquisition
• Real estate purchase
• Equipment
• Working capital
• Refinancing

How LendWorks matches you with a SBA Loan lender

1. Apply in about two minutes — no credit-score impact.
2. Our AI underwriting engine grades your file and matches you with a dedicated advisor.
3. Your advisor presents vetted SBA Loan offers side by side — you choose or walk away.

SBA Loan FAQs

What is a SBA Loan?

SBA 7(a) and 504 loans are government-backed programs offering some of the lowest rates and longest terms available for qualifying small businesses.

How much can I borrow with a SBA Loan?

Typical funding amounts range from $50,000 – $5,000,000. Your exact offer depends on revenue, time in business, credit profile, and business performance.

What are the rates for SBA Loan?

SBA Loan typically runs Prime + 2.25% – Prime + 4.75%. Your actual pricing depends on revenue, time in business, credit profile, and term — your advisor breaks down the real cost and total payback before you commit, so there are no surprises.

How long does it take to get funded with SBA Loan?

Funding timelines vary by product and lender — some options fund within a few business days, while larger or government-backed programs take longer. Your advisor gives you a realistic timeline for SBA Loan based on your documents and lender fit.

What do I need to qualify for SBA Loan?

Most lenders look for at least 2 years in business and a 650+ credit score. Your advisor will assess your full profile.

Is SBA Loan right for my business?

SBA Loan fits best when you need business acquisition or real estate purchase and can work with a 5 – 25 years term. If your timeline is longer or you can wait for a lower rate, your advisor may recommend an alternative — the goal is the right fit, not just the fastest approval.

How does LendWorks match me with a SBA Loan lender?

LendWorks runs your profile through AI underwriting to match you with a real advisor — not a lead form. Your advisor reviews your situation and presents options from our vetted lender network.

Does applying for SBA Loan hurt my credit score?

Checking your options with LendWorks does not impact your credit score. We use a soft pull to assess eligibility. A hard pull only occurs when you move forward with a specific lender offer.

Frequently asked questions

What is the difference between an SBA 7(a) loan and an SBA 504 loan?

The 7(a) program is the SBA's flagship general-purpose loan — it can be used for working capital, equipment, inventory, business acquisition, refinancing, and real estate. It is originated by a single lender and the SBA guarantees 75–85%. The 504 program is specifically designed for long-term fixed assets like real estate and heavy equipment. A 504 deal involves two lenders: a conventional bank covers 50% of the project, a Certified Development Company (CDC) covers 40% with a 100% SBA-guaranteed debenture, and the borrower contributes 10% down. The 504 offers fixed rates on the CDC portion, which is attractive for commercial real estate.

How long does it take to get an SBA loan?

Standard SBA 7(a) loans typically take 60–90 business days from application to funding. SBA Preferred Lenders (PLPs) can process approvals internally without submitting to the SBA, reducing timelines to 30–45 days. SBA Express loans (up to $500,000) must receive a response within 36 hours but still require full underwriting and closing, so total timeline is typically 30–45 days. 504 loans often take 60–90 days due to the involvement of both a bank and a CDC.

What are SBA loan interest rates?

SBA 7(a) interest rates are variable and tied to the prime rate, with the SBA setting maximum spreads above prime. As of 2026, rates for 7(a) loans typically range from prime + 2.25% to prime + 4.75% depending on loan size and term. For a $500,000 loan at a prime rate of 7.5%, the rate might be 10.25–12.25%. SBA 504 loans offer fixed rates on the CDC portion — typically in the 5–7% range for the 20- or 25-year debenture — which are often the most attractive long-term rates available for commercial real estate.

Can I use an SBA loan to buy an existing business?

Yes. SBA 7(a) loans are frequently used for business acquisitions, and the SBA has specific rules for these transactions. The buyer typically needs to contribute at least 10–20% equity (often through seller financing structured as a standby note). The business being acquired must meet SBA size standards and be a legitimate operating business with historical financials. Acquisitions require a business valuation from a qualified appraiser and a detailed business plan. SBA Express is not suitable for most acquisitions due to the $500,000 cap.

What industries are ineligible for SBA loans?

The SBA has a list of ineligible business types that cannot receive SBA financing under any program. These include businesses primarily engaged in lending (banks, finance companies), passive real estate investment (rental properties, REITs), life insurance companies, businesses involved in gambling, certain multi-level marketing companies, businesses that have previously defaulted on a federal loan, and businesses with principal owners who are on probation or parole. The full ineligibility list is published in the SBA's Standard Operating Procedures (SOP 50 10).

Do I need collateral for an SBA loan?

SBA lenders are required to follow a "collateral first" approach — they must take all available business and personal assets as collateral to the extent they are available. However, the SBA does not decline loans solely due to insufficient collateral. If a business lacks sufficient collateral to fully secure the loan, the lender can still proceed as long as all available collateral is pledged. Personal guarantees from all owners with 20%+ equity are always required. Real estate, equipment, and inventory are common collateral sources.

What is an SBA Preferred Lender and why does it matter?

SBA Preferred Lenders (PLPs) are high-volume SBA lenders that the SBA has granted delegated authority to approve 7(a) loans internally, without submitting for SBA review. This significantly speeds up the approval process — often cutting 3–6 weeks from the timeline. Working with a PLP lender (vs. a non-preferred or SBA Express lender) is one of the most impactful choices a broker can make when placing an SBA deal. LendWorks Connect gives you access to PLP lenders with fast track approval pipelines.

What happens if I default on an SBA loan?

If you default, the lender will first attempt collection and workout, including loan modification or deferral. If the loan goes into default and cannot be resolved, the lender claims the SBA guarantee, which covers 75–85% of the outstanding balance. The SBA then pursues collection from the borrower directly, including against personal assets if a personal guarantee was signed. SBA defaults also appear on your credit report and disqualify you from future SBA financing until the balance is resolved or a compromise settlement is reached.