Funding solutions
SBA Loans for Small Businesses
SBA loans are bank loans partially guaranteed by the U.S. Small Business Administration, which lets lenders offer longer terms and lower payments than most private financing. They take longer to close, but for established businesses they are often the lowest-cost money available.
Check your SBA Loans options
SBA Loans may be a good fit if…
- You have two or more years in business and filed tax returns
- You are buying a business, real estate or major equipment
- You want the lowest monthly payment and can wait several weeks
- You are refinancing expensive short-term debt
Consider something else if…
- Need money in days, not weeks? A line of credit or working capital is faster. See Business Line of Credit
- Buying one piece of equipment? Equipment financing is simpler. See Equipment Financing
Requirements
What lenders typically look for.
These are common guidelines across our lender network, not hard cutoffs. Your advisor will tell you where you stand.
| Time in business | Usually 2+ years |
|---|---|
| Revenue | Steady, documented revenue that covers the new payment |
| Credit | Typically 650+ personal credit |
| Documents | Tax returns, financial statements, debt schedule, ownership and ID details |
How it works
How SBA Loans work with WellRounded
Pre-qualify
Answer a few questions so your advisor can tell you which SBA program fits: 7(a), 504 or Express.
Build the package
Your advisor gives you one checklist: tax returns, financials, debt schedule and a short use-of-funds summary.
Lender underwriting
An SBA lender reviews cash flow, credit and collateral, then issues terms subject to SBA guidelines.
Close and fund
You sign closing documents and funds are disbursed, either in a lump sum or against project costs.
Costs
How SBA Loans are priced.
SBA loan rates are tied to the prime rate plus a lender spread capped by SBA rules, and most loans carry an SBA guarantee fee that varies by loan size. Because terms run up to 10 years for working capital and 25 years for real estate, the monthly payment is usually far lower than short-term financing of the same size. Your advisor will show you the total cost and payment before you commit.
‡ Ranges shown are typical and illustrative, not an offer of credit. Final amounts, rates and terms are set by the lender.
Calculator
Estimate your payment.
Estimates for illustration only, not an offer of credit. Your actual rate, term and fees are set by the lender and depend on your business.
Industries that often use SBA Loans
How long does an SBA loan take?
Most SBA 7(a) loans take 30 to 90 days from complete application to funding. SBA Express can be faster. Having your documents ready is the single biggest factor in speed.
What credit score do I need for an SBA loan?
There is no single SBA minimum, but most lenders look for personal credit around 650 or higher, along with strong cash flow and a clean recent payment history.
Do SBA loans require collateral?
Lenders take available business assets as collateral, and may take personal real estate on larger loans. A lack of collateral alone is not supposed to be a reason for decline under SBA rules.
Do I need a personal guarantee?
Yes. Owners with 20% or more of the business typically sign a personal guarantee on an SBA loan.
Can I use an SBA loan to buy a business?
Yes. SBA 7(a) is one of the most common ways to finance a business acquisition, often with a 10% buyer injection.
What is the difference between SBA 7(a) and 504?
The 7(a) is flexible and covers working capital, acquisitions and refinancing. The 504 is for fixed assets like real estate and heavy equipment, and pairs a bank loan with a loan from a Certified Development Company.
Ready to explore SBA Loans? See your options today.
- Decisions in as little as 24 hours*
- $10K–$5M+ across 10 products
- No hard credit pull to apply
- One dedicated funding advisor