SBA microloans, offered in amounts up to $50,000, have the lowest requirements of all the SBA loan types. You may qualify with a personal credit score as low as 620 and with fewer than two years in business. But note that SBA microloans often require collateral.
What is an SBA Loan?
SBA loans are small business loans partially guaranteed by the U.S. Small Business Administration and funded by SBA-approved lenders.
The main SBA loan programs—7(a), CDC/504, and microloan—can be used for a wide range of business purposes, including:
See Your Loan Options
Why get an SBA Loan?
SBA loans are attractive for their competitive interest rates, which currently range from 10.25% to 15.25%. They also offer long repayment terms, anywhere from 10 to 25 years. And if you get a 7(a) loan or microloan, you have the flexibility to use the funds for virtually any business purpose.
SBA loan types
SBA 7(a) Loans
This is the SBA’s main loan program and is very popular because the capital can be put toward a wide range of business purposes, and the interest rates and terms are highly competitive. SBA 7(a) loans come with either fixed or variable interest rates, determined by each SBA-approved lender. Your interest rate depends on your credit score and the length of your repayment term.
Terms 10–25 years
Max amount $5 million
SBA Express loans
SBA Express loans are part of the 7(a) loan program but typically fund faster. They come in the form of term loans or lines of credit. If you borrow less than $50,000, you won’t be required to provide collateral. The guarantee fee on an SBA Express loan is waived for eligible veteran-owned businesses.
Terms 10–25 years
Max amount $500,000
SBA CDC/504 loans
An SBA CDC/504 loan is used specifically for purchasing fixed assets, upgrading existing assets, or buying real estate. These loans are funded through a partnership between certified development companies (CDCs) and private lenders. Typically, the structure includes 50% of the loan amount from a bank or credit union, 40% from an SBA-approved CDC, and a 10% down payment from the borrower.
Terms 10–25 years
Max amount $5 million
SBA loan types
SBA 7(a) Loans
This is the SBA’s main loan program and is very popular because the capital can be put toward a wide range of business purposes, and the interest rates and terms are highly competitive. SBA 7(a) loans come with either fixed or variable interest rates, determined by each SBA-approved lender. Your interest rate depends on your credit score and the length of your repayment term.
Terms 10–25 years
Max amount $5 million
Qualifications for an SBA loan
(Based on past Fundera customers)
$180K+
annual revenue
660+
credit score
3 years+
time in business
How to get an SBA loan from Fundera?
1. Tell us about your business
Answer just a few questions about your business to see which lending products you qualify for. It’s free and won’t impact your credit score.
2. Compare your loan options
We match you with a variety of business loan options and provide guidance to help you choose the best one for your needs.
3. Get funded
After loan approval, you’ll sign closing documents to receive your funds. Some lenders can approve and issue funds within one business day.
Why choose Fundera by NerdWallet?
It’s free
Discover all of your options in one place for free.
Compare multiple options in one place
Complete one application and prequalify for multiple loan offers at once.
Get funding, fast
Receive funding in as little as one business day.
Frequently asked questions
You need to meet strict eligibility criteria to qualify for an SBA loan. With the exception of SBA microloans, you need at least a few years in business, strong annual revenue, and excellent personal credit. SBA loans also have a notoriously long and document-heavy application process. And, depending on the loan type and lender, you may be required to secure the loan with collateral.
To qualify for an SBA loan, a business must operate for profit within the U.S. and meet the SBA’s size requirements, as listed on the agency’s website. The business must be creditworthy, must be unable to get financing elsewhere, and must not fall under any of the SBA’s ineligible business types.
The SBA microloan program, in particular, is designed for newer businesses that have been operating for less than two years. The minimum credit score and financial requirements are also more accessible to startup business owners.