What it is
SBA loans are made by banks and non-bank lenders with a federal guarantee on a portion of the loss. Common uses: acquisition, real estate, equipment, and working capital with longer amortization than conventional loans.
Who it fits
- An established contractor buying a yard and fleet.
- A manufacturer expanding into a second bay.
- A multi-location services firm acquiring another book of business.
What many lenders look for
- Many SBA lenders want ~2+ years in business and strong personal guarantees from owners ≥20%.
- Many cite 650+ FICO for 7(a); higher for best terms.
- Clean tax and legal history — liens and prior government loan defaults are scrutinized.
Pros
- Longer terms can mean lower payments.
- Can combine real estate and equipment in one plan.
Cons
- Slow — weeks to months.
- Heavy documentation and personal guarantee.
Questions to ask any provider
- 7(a) vs. 504 — which fits this use?
- What is the total project cost including SBA and bank fees?
Compare other options
FAQ
- Does the SBA lend directly?
- No — you apply through an SBA lender; LoanHelp sends your file to one partner.