What are SBA loans?
SBA loans are partially guaranteed by the U.S. Small Business Administration, which lets lenders offer lower rates and longer repayment terms than almost any other business financing. The two most common are the 7(a) loan (flexible, general-purpose) and the 504 loan (for real estate and major fixed assets).
They take longer and require more paperwork, but if you qualify and can wait 30–90 days, an SBA loan is usually the lowest total cost way to fund a significant investment.
How it works
- 7(a): general-purpose financing up to $5M for working capital, expansion, debt refinancing, or acquisitions.
- 504: long-term, fixed-rate financing for owner-occupied real estate or large equipment.
- The SBA guarantees a portion, reducing lender risk and your rate.
- Underwriting is thorough — expect tax returns, financials, and a few weeks of review.
What it costs
SBA loan rates are capped by the SBA and set as the prime rate plus a spread, which works out to roughly 10.5–11% today. Terms run from 7 to 25 years, so monthly payments are among the lowest of any business financing.
Expect an SBA guarantee fee and lender closing costs on larger loans, and a longer process of 30 to 90 days. The SBA loan calculator estimates the payment for 7(a) and 504 terms.
Rates, amounts and terms on this page are typical ranges, not offers or guarantees. Your terms depend on your business and the lender that makes the offer. Cashifi is not a lender and does not make credit decisions.
Best for
- Buying commercial real estate or a building
- Acquiring another business
- Major expansion with the lowest possible rate
- Refinancing expensive existing debt
Pros and considerations
Pros
- + Lowest rates available to small businesses
- + Longest terms — up to 25 years
- + Large loan amounts (up to $5M+)
- + Lower monthly payments from longer amortization
Considerations
- – Slow — 30 to 90 days to fund
- – Heavy documentation and underwriting
- – Stronger credit (typically 650+) and 2+ years in business
- – Personal guarantee and sometimes collateral required
Do you qualify?
- 2+ years in business
- 650+ credit score
- Demonstrated repayment ability (tax returns, financials)
- U.S.-based, for-profit business
Typically you'll provide: 2 years of business + personal tax returns, Year-to-date P&L, Debt schedule, Business financials.
How to apply
- 1Complete one application online — about four minutes, with a soft credit check that won't affect your score.
- 2Upload your recent business bank statements so lenders can see your revenue and cash flow.
- 3Compare the offers that come back, ranked by total cost, and choose the one that fits. There is no obligation.
Frequently asked questions
What's the difference between SBA 7(a) and 504?
The 7(a) is flexible general-purpose financing up to $5M (working capital, expansion, acquisitions, refinancing). The 504 is for long-term fixed assets like owner-occupied real estate and major equipment, with below-market fixed rates.
How long does an SBA loan take?
Typically 30–90 days from application to funding, due to SBA underwriting. If you need cash faster, working capital or a term loan may be a better fit.
Do I need collateral for an SBA loan?
It depends on the loan size and type. Larger loans often require collateral and always require a personal guarantee from owners with 20%+ ownership.