The Complete Guide to SBA Loans in 2026

SBA loans are among the most sought-after financing options for small businesses, and for good reason. They offer lower interest rates, longer repayment terms, and lower down payments than conventional loans. Here's everything you need to know.

What Are SBA Loans?

SBA loans are business loans partially guaranteed by the U.S. Small Business Administration. The SBA doesn't lend money directly - instead, they guarantee a portion of loans made by approved lenders, reducing the lender's risk.

This guarantee allows lenders to offer better terms than they otherwise could for small business borrowers.

Types of SBA Loans

SBA 7(a) Loans

The most common SBA loan program, 7(a) loans can be used for almost any business purpose:

•Loan amounts: Up to $5 million

•Terms: Up to 25 years for real estate, 10 years for equipment, 7 years for working capital

•Interest rates: Prime + 2.25% to Prime + 4.75% (variable)

•Uses: Working capital, equipment, real estate, refinancing, business acquisition

SBA 504 Loans

Designed for major fixed assets like real estate and heavy equipment:

•Loan amounts: Up to $5 million (up to $5.5 million for manufacturing or energy projects)

•Terms: 10, 20, or 25 years

•Interest rates: Below-market fixed rates

•Structure: 50% from a lender, 40% from a CDC, 10% down payment from borrower

•Uses: Real estate, major equipment, renovations

SBA Microloans

For smaller financing needs:

•Loan amounts: Up to $50,000

•Terms: Up to 6 years

•Interest rates: 8% to 13%

•Uses: Working capital, inventory, supplies, equipment

SBA Disaster Loans

For businesses affected by declared disasters:

•Loan amounts: Up to $2 million

•Terms: Up to 30 years

•Interest rates: As low as 4%

SBA Loan Requirements

To qualify for an SBA loan, you generally need:

1. **Be a for-profit business** operating in the U.S.

2. **Meet SBA size standards** (varies by industry)

3. **Have invested equity** in the business

4. **Demonstrate ability to repay** from business cash flow

5. **Have exhausted other financing options**

6. **Good character** - no recent bankruptcies or criminal history

Credit Requirements

While the SBA doesn't set minimum credit scores, most lenders want to see:

•Personal credit score of 680+

•No recent bankruptcies (typically within 3 years)

•No defaults on government loans

Collateral

SBA loans typically require collateral for loans over $25,000. This can include:

•Business assets

•Real estate

•Equipment

•Inventory

The Application Process

Step 1: Determine Eligibility

Review the basic requirements and make sure your business qualifies.

Step 2: Gather Documentation

You'll typically need:

•Business and personal tax returns (3 years)

•Financial statements

•Business plan

•Personal financial statement

•Business licenses and registrations

Step 3: Find a Lender

Work with an SBA-approved lender. You can find them through:

•SBA Lender Match tool

•Local banks and credit unions

•Online lenders like FastLoan

Step 4: Submit Application

Complete the application with your chosen lender. They'll review your documents and make a decision.

Step 5: Approval and Funding

If approved, you'll sign loan documents and receive funding. This process typically takes 30-90 days.

Tips for Approval

1. **Prepare thorough documentation** - Incomplete applications cause delays

2. **Write a strong business plan** - Show lenders you have a clear vision

3. **Demonstrate cash flow** - Prove you can make loan payments

4. **Maintain good credit** - Both personal and business

5. **Have collateral ready** - Real estate or equipment strengthens your application

Is an SBA Loan Right for You?

SBA loans are ideal if you:

•Need favorable rates and long terms

•Have time to wait for funding (30-90 days)

•Can provide required documentation

•Meet the eligibility requirements

They may not be ideal if you:

•Need funding quickly

•Have poor credit

•Don't want to pledge collateral

Get Started

Ready to explore SBA loan options? Check your rate with FastLoan to see what you qualify for. Our network includes SBA-approved lenders who can help you through the process.