SBA 7(a): Government-backed loans for small businesses.

You apply through an approved lender, not through the SBA itself. A good first step is SBA's free Lender Match tool at sba.gov/loans/lender-match, which sends you a list of interested lenders two business days after you submit a request.

You can also approach any local bank or credit union that offers SBA loans, or search for Preferred Lenders (PLPs) who can approve loans without additional SBA review. Prepare three years of tax returns, financial statements, a business plan, and personal financial statements before you start.

SBA does not set a minimum personal credit score; each lender sets its own standard. On March 1, 2026, SBA dropped the mandatory FICO SBSS credit-score requirement for 7(a) Small Loans of $350,000 or less.

That gives lenders more room to underwrite based on cash flow, industry experience, and character.

Standard 7(a) loans go up to $5 million. Express loans cap at $500,000, and Export Express also caps at $500,000. The average 7(a) loan in fiscal year 2025 was roughly $477,000 (SBA: $37 billion across 77,600 loans).

Your actual financing size depends on collateral, projected cash flow, industry, and the lender's appetite. SBA publishes updated weekly and annual program statistics at sba.gov.

For loans approved from October 1, 2026 with terms over 12 months, the upfront guaranty fee is 2 percent of the guaranteed portion for loans of $150,000 or less and 3 percent for $150,001 to $700,000.

From $700,001 to $5 million, it is 3.5 percent of the guaranteed portion up to $1 million plus 3.75 percent above $1 million. Loans of 12 months or less pay 0.25 percent.

The fee is 0 percent on loans of $700,000 or less to manufacturers, some food supply chain businesses, and rural businesses, and $0 on SBA Express loans to veteran-owned businesses. Your lender may also charge its own fees.

Express is a 7(a) variant built for speed. The maximum is $500,000 (vs $5M for standard 7(a)), and the SBA guaranty is 50 percent (vs 75 to 85 percent). The lender makes the credit decision itself, without SBA review, and uses its own closing documents.

That speed makes Express useful for working capital lines of credit or urgent equipment purchases.

Yes. 7(a) loans can finance owner-occupied commercial real estate up to $5 million with terms up to 25 years, which is longer than most conventional commercial mortgages. The business must occupy at least 51 percent of an existing building.

For new construction it must occupy at least 60 percent at first, with more of the space taken over time. For larger owner-occupied real estate projects, the SBA 504 loan program is often a better fit, with fixed rates and a 10 percent down payment. Neither program finances pure investment property.

Often, yes. For loans of $50,000 or less, SBA does not require collateral. For $50,001 to $500,000, the lender follows its own collateral policy for similar non-SBA loans.

For larger Standard 7(a) loans, SBA expects liens on the assets being financed and on available fixed assets up to the loan amount, which can include personal real estate.

SBA says a loan is not to be declined only because collateral is short, but collateral still shapes the lender's decision and terms.

For standard 7(a), the SBA guaranty is 85 percent for loans of $150,000 or less and 75 percent for loans over $150,000, up to a maximum guaranteed amount of $3.75 million (75 percent of the $5M cap). Express loans carry a 50 percent guaranty regardless of size.

Export Express loans have a 90 percent guaranty for loans up to $350,000 and 75 percent for larger loans. The guaranty is what the agency pays the lender if the borrower defaults, which is why lenders are willing to make borrowers they would otherwise decline.

Yes, but it is harder than for an established business. SBA requires a startup to put in at least 10 percent equity, and many lenders ask for more. Expect to show good personal credit, relevant industry experience, and a detailed business plan with monthly cash flow projections.

SBA's Microloan program (up to $50,000, offered by nonprofit intermediary lenders) is often more accessible for true startups.

SBA lists its own turnaround for a Standard 7(a) as 5 to 10 business days after the lender submits the package. For SBA Express, the lender makes the decision itself. The lender's own underwriting adds time on top.

Total time depends heavily on how complete and organized your application package is at submission. Missing documents, unresolved tax issues, or unclear business plans are the most common causes of delay.

Preferred Lenders can approve loans without additional SBA review, which is why they are usually the faster path.

Yes. Business acquisition is one of the most common uses of the SBA 7(a) program. You can finance up to 100 percent of the purchase price minus your required equity injection, which is at least 10 percent of project cost for a full business purchase.

A seller note can cover up to half of that 10 percent injection, but only if it is on full standby (no payments) for the life of the SBA loan.

You will need a business valuation, a detailed post-purchase business plan, and evidence that the target business generates enough cash flow to service the financing.

Yes, but this is typically better served by SBA CAPLines, a variant of the 7(a) program specifically for cyclical or contract-based working capital. CAPLines are revolving lines of credit up to $5 million tied to a specific contract, seasonal cycle, or working capital need.

Standard 7(a) loans can also be used for general working capital that indirectly supports government contracting, and the agency offers additional programs like the 8(a) Business Development Program for socially and economically disadvantaged businesses seeking federal contracts.

Common disqualifiers include unresolved federal tax liens or delinquent federal debt (including federal student loans). Since March 1, 2026, any owner who is not a U.S. citizen or U.S. national also makes the business ineligible.

Engagement in ineligible activities also disqualifies you (gambling, most passive real estate, most political or religious activity, pyramid sales, or businesses of a prurient nature).

So do inability to demonstrate reasonable repayment ability from projected cash flow and lack of the required equity injection. Some lenders also decline loans in industries they consider high-risk (restaurants, trucking, gas stations), even though program rules do not prohibit them.

SBA 7(a) is a general-purpose loan up to $5M for working capital, equipment, real estate, and business acquisition, funded by a single lender with an SBA guaranty.

SBA 504 is a real-estate and equipment program with loans up to $5.5 million (small manufacturers can get more than one 504 loan for separate projects) that combines a bank loan (50 percent of project cost), a Certified Development Company (CDC) loan backed by SBA (40 percent), and borrower equity (10 percent).

504 offers fixed rates (terms up to 25 years for real estate, 10 for equipment) and is usually cheaper for large real estate or heavy equipment purchases, while 7(a) offers more flexibility and covers more use cases including working capital and business acquisition.

Yes. SBA's May 18, 2026 policy change, which doubled the cumulative 7(a) + 504 loan cap, took effect on July 4, 2026.

Qualified small businesses can now stack up to $5 million from the 7(a) program with up to $5 million from the 504 real-estate program for a combined $10 million in SBA-backed financing. The previous cumulative cap was $5 million across both programs.

You still must qualify independently for each loan, meet SBA size standards, and use each program for its authorized purposes (7(a) for working capital, equipment, or acquisition; 504 primarily for real estate and heavy equipment).