SBA Loans
Back your next major investment with a government-backed SBA loan, and secure some of the lowest rates and longest terms your business can borrow at.
Talk to an SBA specialist before you start assembling paperwork.
What is an SBA loan?
An SBA loan is the cheapest money most established businesses can borrow, and through FundBetter it puts government-backed pricing within reach that a conventional lender would rarely match. It exists because the U.S. Small Business Administration guarantees part of the loan for the lender, which takes risk off the lender's table so you capture the upside: some of the lowest rates and longest repayment terms in small business financing.
If you're making a major, long-term investment, this is the product built for it. An SBA loan takes longer to fund than other options because of the added paperwork and approval steps, but for the right project the low cost and long terms pay you back for the patience.
Benefits of an SBA loan
Backed by the U.S. government
With the SBA guaranteeing a portion of the loan, a lender can approve the deal it would otherwise decline.
Some of the lowest rates
Government backing keeps your interest rate low.
Long repayment terms
Terms up to 25 years spread a large purchase into a monthly payment your business can carry.
Expert SBA guidance
An SBA specialist handles the paperwork and approval process alongside you from start to finish.
How does an SBA loan work?
Because SBA loans involve more documentation, the process is built to keep the work off your desk: it starts with a conversation to confirm the program is a good fit and to gather what you need, then the FundBetter team does the heavy lifting with you, preparing and submitting a complete application so nothing stalls in review.
Once you're approved, you walk away with a large, low-cost loan repaid over a long term, up to 25 years depending on the use, at a payment your business can plan around.
SBA loan programs compared: 7(a), 504, and microloans
The SBA doesn't hand out the money itself. It guarantees a portion of a loan made by a bank, credit union, or other approved lender, and that guarantee is exactly what unlocks the low rates and long terms for your business. (Disaster loans are the one exception, and the SBA funds those directly.) Which program you apply under depends mostly on what you're buying, and choosing the right one is the difference between a smooth approval and a stalled file.
| SBA program | Typical maximum | What it can be used for | Typical term | Who it suits |
|---|---|---|---|---|
| 7(a) loans | Up to $5 million | The broadest use of funds: working capital, inventory, equipment, buying an existing business, partner buyouts, refinancing costly debt, and owner-occupied property. | Around 10 years for working capital and equipment, up to 25 years for real estate. | Most applicants. If you are unsure which program fits, this is the one our advisors look at first. |
| 504 loans | Up to $5 million of SBA-backed debenture inside a larger total project | Fixed assets only: buying or building owner-occupied commercial property, land, major renovations, and the heavy machinery manufacturing businesses run on. Not working capital, not inventory. | Commonly 10, 20, or 25 years, matched to the life of the asset. | Businesses buying the commercial real estate they operate out of, or making a large one-time equipment purchase. |
| Microloans | Up to $50,000 | Working capital, inventory, supplies, furniture, and small equipment. Not real estate and not debt refinancing. | Shorter than the other programs, generally under seven years. | Newer and very small businesses that need a modest amount and would be turned down for a larger loan. |
How long an SBA loan takes to fund
The honest answer is weeks, not days, and sometimes longer, and knowing that up front is what lets you plan around the timeline with confidence instead of being caught out by it. An SBA loan passes through more hands than any other product on this site, and each set of hands adds time.
The process moves through four rough stages. First, a fit review, where one of our funding advisors confirms you meet the program requirements before anyone spends effort on paperwork. Second, document collection, which is where most of the calendar is actually spent. Third, underwriting, where the lender verifies your financials, orders valuations or appraisals on any property involved, and builds the credit file. Fourth, closing, where the loan documents are drawn, conditions are cleared, and funds are disbursed.
Almost every delay traces back to stage two. A missing year of tax returns, a debt schedule that doesn't reconcile to the balance sheet, an operating agreement that was never signed, a partner who is slow to return a personal financial statement. Any one of these stops the file until it's resolved. Real estate purchases add their own timeline, because appraisals and environmental reviews run on the schedule of third parties.
You can beat the average applicant to funding by doing three things. Gather the full document set before you apply rather than sending it piece by piece. Make sure every owner with a meaningful stake is ready to sign and to share personal financials. And answer underwriter questions the same day they arrive, because a file that sits waiting on you'll lose its place in the queue.
If the money is needed sooner than the SBA timeline allows, that gap can usually be bridged. FundBetter can arrange short-term funding to cover the immediate need and have it repaid or refinanced when the SBA loan closes. If the timeline simply doesn't work at all, long-term business loans fund far faster with lighter paperwork, at a higher cost.
Documents you need for an SBA loan
Every lender has its own checklist, but the core file looks much the same everywhere, so a little preparation now is the surest way to keep your loan moving. Assemble these before you apply and you remove the single largest source of delay, which is the fastest lever you control over how quickly your loan funds.
Business financial statements
A profit and loss statement and balance sheet for the last two to three fiscal years, plus interim statements covering the current year to date. Keep them internally consistent and reconciled to your tax returns, because clean numbers move you through underwriting faster than almost anything else on this list. Unexplained gaps between the two are one of the most common reasons a file stalls.
Business tax returns
Complete federal returns for the past three years, including all schedules and attachments. Send them whole the first time, because partial returns get sent back and cost you days. If a return is on extension, provide the extension filing along with the most recent statements so the lender can see the gap is accounted for.
Personal financials from every guarantor
Anyone owning roughly 20 percent or more of the business will generally need to guarantee the loan personally. Each of those owners provides a personal financial statement listing assets, liabilities, and income, along with three years of personal tax returns. Chase these down early, because one absent partner holds up the whole application, which is a common snag at law firms and other partnerships.
A business plan or projections
Required when the loan funds something new: an acquisition, a second location for a restaurant group, a construction project, or a major expansion. This is your chance to show the lender how the borrowed money produces the cash flow that repays it. Make the projections month by month for at least the first year and tie them back to real assumptions.
Your business debt schedule
A single list of every outstanding obligation: lender name, original amount, current balance, monthly payment, rate, maturity date, and collateral pledged. Include equipment leases, merchant advances, and lines of credit, and make the totals match your balance sheet. This is the document applicants most often submit incomplete, so getting it right the first time keeps you ahead of the queue.
Ownership and legal documents
Articles of incorporation or organization, operating agreement or bylaws, current ownership breakdown, business licenses, and your EIN letter. Add any commercial leases, franchise agreements, or purchase agreements tied to the loan. For an acquisition, expect the lender to review the target business financials in full, so line those up early too.
When an SBA loan is the right choice
An SBA loan is usually the cheapest money an established small business can borrow, which makes it worth real effort to qualify for. That advantage is only worth claiming if the timeline and the paperwork suit what you're trying to do, which is why FundBetter will point you to a faster product the moment an SBA loan is the wrong fit.
An SBA loan fits when
- You are buying property, a business, or equipment you will still be using in ten years, which is why healthcare practices lean on the program.
- The project is planned rather than urgent, and a start date months out is acceptable.
- You have two or more years of clean books and returns already prepared.
- The loan is large enough that a lower rate saves a meaningful amount over the term.
- You are refinancing expensive debt and the interest saved justifies the process.
Skip the SBA loan when
- The money is needed in days or weeks and no bridge option is available, which is where short-term business loans do the job instead.
- The amount is small enough that the paperwork costs more effort than the rate saves.
- Your business is under two years old or has not yet turned a profit, in which case revenue-based financing judges you on sales rather than history.
- Recent tax returns are unfiled, or your books are not close to lender ready.
- No owner is willing to sign a personal guarantee or pledge collateral.
- The need is seasonal or short lived, and a term of ten years or more does not match it.
Best ways to use an SBA loan
SBA money is patient money. It suits purchases you will still be using long after the loan is repaid.
Who qualifies for an SBA loan?
SBA programs set a higher bar than our other products. Established, profitable businesses clear it most comfortably.
Check if you qualifyFrequently Asked Questions
Does the SBA lend the money directly?
No. For standard business programs the SBA guarantees a portion of a loan made by a participating lender. The lender underwrites the file, approves it, and disburses the funds. The guarantee reduces the lender risk, which is why rates and terms are better than conventional financing. The only loans the SBA funds directly are disaster loans.
What is the difference between a 7(a) loan and a 504 loan?
A 7(a) loan is flexible and covers almost any legitimate business purpose, including working capital, acquisitions, and refinancing. A 504 loan is restricted to fixed assets such as owner-occupied property and heavy machinery, and it's structured through a Certified Development Company alongside a third-party lender. If you need anything other than fixed assets, 7(a) is the program to look at.
Do SBA loans require a down payment or collateral?
Usually both. Expect to contribute equity toward the purchase price, particularly on acquisitions and real estate, and expect the lender to take a lien on business assets. Where business collateral doesn't cover the loan, personal assets including real estate may be pledged. A FundBetter advisor will tell you what a specific offer requires before you commit to anything.
Can a startup get an SBA loan?
It's difficult but not impossible. Most SBA lenders want to see at least two years of operating history and profitability. A newer business has a better chance with a microloan, or with a 7(a) loan supported by strong industry experience, a detailed plan, a larger equity injection, and solid personal credit. Otherwise a different product, such as invoice factoring against invoices you have already issued, is usually the faster route.
Do I have to sign a personal guarantee for an SBA loan?
In almost every case, yes. Owners holding roughly 20 percent or more of the business are generally required to guarantee the loan personally, which means you're responsible for repayment if the business can't pay. This is standard across SBA programs and isn't something a lender can waive on its own.
Can I get funding while my SBA loan is still being processed?
Often, yes. Because SBA approval takes weeks, FundBetter can frequently arrange short-term bridge funding to cover an immediate need while the application moves forward. Tell us early if you have a deadline, since the bridge has to be structured so that it doesn't interfere with the SBA underwriting or the eventual closing.
Other business funding options
Unlock your growth with an SBA loan
An SBA specialist will tell you honestly whether you qualify, and what to do instead if you do not.