Small Business Administration (SBA) Loans

The U.S. Small Business Administration (SBA) is a federal agency that helps entrepreneurs manage their businesses and gain access to capital. SBA loans have some of the lowest interest rates available, but usually require strong personal and/or business credit. The SBA pre-screens loan applicants with FICO’s SBSS score, a small business credit score. While most businesses, even younger ones, can qualify for an SBA loan, having a limited business history makes it more difficult.

7(a) loans, the most popular loan provided by the SBA, are available to new and established businesses with a FICO SBSS Score of 140 or above.

SBA Community Advantage Loans are a type of SBA 7(a) loan designed to help provide affordable financing and technical assistance to underserved businesses that may not qualify for traditional financing. These loans are provided by many mission-driven lenders and do not have some requirements of more traditional financing products.

504/CDC(Certified Development Company) Loans provide long term financing for businesses to purchase real estate or high-cost assets they need to run their business.

SBA Microloans are small loans of up to $50,000, available to new and established businesses through non-profit community lenders.

SBA 7(A)
7(a) loans are negotiated between a borrower and SBA-approved lender. The maximum loan amount is $5 million.

SBA 504
Maximum loan amounts are determined by how funds will be used and based on which business goal they support.

For more information about the SBA (7)a and 504 loans, as well as other loans offered by the SBA, visit the SBA site.

Features: 
  • Lowest down payments
  • Longest payment terms
  • Reasonable interest rates
  • Suitable for wide range of business purposes
  • Multiple programs available
Things to consider: 
  • Lengthy paperwork
  • Longer approval times
  • May require collateral
  • Strict acceptance criteria
  • May be restricted from taking on another loan
Credit Score Requirements: 
Good
Annual Interest Rates: 
6% – 13 %
Turnaround Time: 
30 days – 6 months

Loan amounts

Loan range: 
$50 000-$5 000 000