SBA Loans for Small Businesses
Helping business owners understand SBA loans — and find the best alternative when speed or flexibility matters.
What Is an SBA Loan?
An SBA loan is a small business loan that is partially guaranteed by the U.S. Small Business Administration and issued through banks and approved lenders. Because the government reduces the lender’s risk, SBA loans typically offer:
Low interest rates
Long repayment terms
Higher loan amounts
But they also come with strict requirements, significant paperwork, and approval timelines that can stretch from weeks to months.
Types of SBA Loans
SBA 7(a) Loan
The SBA 7a loan program is the most popular, designed for general business purposes — from working capital to refinancing certain debts. Loan amounts can go up to $5 million, with repayment terms ranging from 7 to 25 years.
SBA 504 Loan
The 504 program is geared toward real estate and large equipment purchases. Loans can reach up to $20 million, but require substantial collateral and down payments.
SBA Microloan
Microloans provide up to $50,000 for small businesses and non-profit childcare centers. Funds can be used for working capital, equipment, or inventory — but not to refinance existing debt or buy real estate.
What Can A Microloan Be Used For?
- Start-up costs
- Funding a business
- Commercial Real Estate
- Working Capital
- Equipment and supplies
- Land
- Repairing existing capital
- Refinancing debt
*Proceeds from an SBA microloan cannot be used to pay existing debts or to purchase real estate
SBA Loan Requirements (At a Glance)
To qualify for most SBA loans, businesses generally need:
Strong personal and business credit (680+ recommended)
At least 2 years of operating history
Proven cash flow and financial statements
Personal guarantee and, in many cases, collateral
A detailed business plan
How the SBA Loan Process Works
Apply through an SBA-approved bank or lender.
Provide business and personal financial documentation.
Wait for lender review, SBA approval, and final underwriting.
Receive funding (can take 30–90+ days).
Alternatives to SBA Loans
Many small businesses either don’t qualify for SBA funding or can’t afford to wait months for approval. Capitalize helps you access faster alternatives with a single application:
Business Term Loans → Flexible terms, faster approval.
Business Lines of Credit → Ongoing access to working capital.
Merchant Cash Advances (MCAs) → Quick funding, minimal paperwork.
Equipment Financing → Fund equipment purchases without large upfront costs.
FAQs About SBA Loans
How long does SBA loan approval take?
Typically 30–90 days, depending on lender and loan type.
What credit score is needed for an SBA loan?
Most lenders require 680+ personal credit.
Can I get an SBA loan with less than 2 years in business?
It’s rare — newer businesses often need to consider alternatives.
Can SBA loan funds be used for working capital?
Yes, most SBA loan programs allow working capital use.
What’s the difference between SBA 7(a) and 504 loans?
7(a) is general purpose; 504 is specifically for real estate and large fixed assets.
Capitalize Helps You Find the Right Fit
Whether SBA loans make sense for your business or you need a faster alternative, Capitalize helps you cut through the complexity. One quick application connects you with lenders that match your goals — so you can get funding on the terms that work for you.
Ready to Get Started?
Apply now and get matched with the right working capital solution for your business.