What is an SBA loan?
An SBA loan is a business loan partly guaranteed by the U.S. Small Business Administration. That guarantee lets lenders offer lower down payments and longer terms than most conventional loans, which is why SBA financing often has the lowest monthly payment for owner-occupied commercial real estate and business acquisitions. There are two main programs:
- SBA 7(a): the flexible option. Up to $5 million for real estate, business acquisition, equipment, working capital, partner buyouts, and expansion.
- SBA 504: for owner-occupied real estate and heavy equipment, structured as a bank loan plus a fixed-rate CDC debenture plus a down payment.
SBA loan terms at a glance
| Loan amount | $100,000 to $5,000,000 (7(a)); 504 projects can be larger |
| Financing | Up to 100% on qualifying owner-occupied deals with select lenders |
| Rates | Set by the lender within SBA limits; quoted after review |
| Term | Up to 25 years for real estate; shorter for equipment and working capital |
| Uses | Owner-occupied CRE · acquisition · equipment · expansion · working capital |
| Where we serve | Illinois and Texas; other states by request |
What SBA loans can fund
- Buying a building your business occupies (for an existing building, your business generally must occupy at least 51%).
- Buying a business, including goodwill.
- Equipment and machinery.
- Expansion or renovation for your operating business.
- Working capital and, on 7(a), partner buyouts.
Do you qualify?
- A for-profit U.S. business that will occupy or operate the asset.
- Good personal credit (many lenders look for around 680 or higher) and no unresolved federal debt.
- Cash flow that supports the new debt, plus some liquidity after closing.
- Owner or operator experience, especially for acquisitions.
Figures are general examples drawn from current lender programs, not an offer or commitment to lend. Actual terms are set by the lender and depend on the deal, the borrower, and underwriting.
How it works with US Funding
- Initial review. Tell us the deal and the numbers. You get a fast, honest read at no cost.
- Engagement. If we can help, we sign a short engagement letter and a business-purpose certification. No fee is due unless your loan closes.
- Strategy & placement. We match your file to the lenders most likely to approve it and compare the term sheets with you.
- Close. Documents, signatures, and funding, managed to the finish. Our fee, if any, is paid at closing through the closing statement.
FAQs
How much can I borrow with an SBA loan?
SBA 7(a) loans go up to $5 million. SBA 504 projects can be larger by combining a bank loan, a CDC debenture, and your down payment.
Do SBA loans really offer up to 100% financing?
Some lenders offer up to 100% on qualifying owner-occupied real estate and certain acquisitions. Most deals involve a down payment. The structure depends on the lender and the deal.
What credit score do I need?
Many SBA lenders look for a personal score around 680 or higher, plus a business that can support the debt. We match your file to the lender most likely to approve it.
How long does an SBA loan take?
SBA loans take longer than bridge loans. Timing depends on the lender and how quickly documents come together. We will give you a realistic timeline after review.
Do you charge a fee up front?
No. US Funding charges no application or upfront fee. Any fee is paid only at closing, after you accept a binding lender commitment.
See if an SBA loan is right for your deal
Start your application in minutes, or let our quick tool point you to the right program. No upfront fees to find out.