The U.S. Small Business Administration works with local lenders and Certified Development Companies to provide loans to small business owners across the United States.
The SBA offers a Lender Match service, as well as three loan types: 7(a) Loans, 504 Loans, and Microloans. There are no deadlines and available funding varies by loan type.
Eligibility
Regardless of the type of loan, all applicants must be:
- An officially registered for-profit business
- Operating in the United States or its territories
- Creditworthy
- Unable to obtain similar financing from non-government sources
- Able to meet size requirements for a small business
- Eligible based on federal regulations
Lender Match
SBA will match you with a lender and allow you to compare your options with Lender Match. You simply answer a few questions about your business and they will give you a list of interested lenders.
Lenders will typically expect applicants to have:
- A business plan
- Specifics on how much funding will be needed and how it will be used
- Collateral
- Financial projections
- Credit history
7(a) Loans
The majority of SBA loans are through the 7(a) program. The maximum loan amount is $5 million, but it is only open to business that are already in operation.
Loan funds may be used for:
- Purchasing, refinancing, or redeveloping property
- Purchasing furniture, fixtures, and supplies
- Purchasing and installing machinery and equipment
- Short and long-term working capital
- Refinancing business debt
504 Loans
504 Loans are long-term, fixed rate loans available through Certified Development Companies. The maximum 504 loan amount is $5.5 million and it is only open to businesses with a tangible net worth of less than $15 million and an average net income of less than $5 million.
Loan funds may be used for:
- Purchasing or redeveloping existing buildings or land
- Building new facilities
- Purchasing long-term machinery and equipment with a remaining useful life of at least 10 years
- Improving streets, utilities, parking lots, and landscaping
504 loan funds may not be used for:
- Working capital or inventory
- Consolidating, repaying, or refinancing debt
- Speculation or investment in rental real estate
- Financing AI-related working capital, intellectual property, or consulting services soft costs
Microloans
Microloans are $50,000 or less for start up and expansion costs for small businesses and certain not-for-profit childcare centers. Microloans are available through intermediary lenders and may be used for:
- Inventory
- Machinery
- Equipment
- Supplies
- Furniture
- Fixtures
- Working capital
Microloan funds may not be used to pay existing debts or purchase real estate.
