7(a) Loans
Flexible business financing
Up to $5 million
Maximum loan amount
Working capital, equipment, eligible real estate, refinancing, or business acquisitions.
Provided through
Participating SBA lenders
Business Financing Guide
Types of SBA Loans
Different programs. Different purposes.
A clearer path to an informed decision.
Compare 7(a) loans, 504 loans, and microloans—including what they can fund, who provides them, and what to prepare before applying.
Business Credit / SBA Loans • Reviewed October 21, 2026
Lender-issued financing
Most business loan programs work through lenders or intermediaries.
Approval is not guaranteed
An SBA guarantee protects the lender—not your eligibility.
Preparation matters
Accurate records and repayment ability support a lender’s review.
The Program at a Glance
Which SBA Loan Fits Your Purpose?
Start with how you intend to use the funds. These are program ceilings, not promised loan amounts; actual eligibility and terms depend on the application.
Explore 7(a) Loans
504 Loans
Major fixed-asset investment
Up to $5.5 million
Eligible SBA-backed portion
Eligible owner-occupied real estate, facilities, and long-term machinery or equipment.
Provided through
Certified Development Companies (CDCs) and lenders
Microloans
Smaller startup & growth needs
Up to $50,000
Maximum loan amount
Working capital, inventory, supplies, furniture, fixtures, machinery, and equipment.
Provided through
SBA-approved nonprofit intermediaries
01 / SBA Loan Programs
7(a) Loans: Flexible business financing
The 7(a) program is SBA’s main business loan program. It supports a range of eligible business purposes, rather than only working capital.
Eligible uses
Working capital, equipment, eligible real estate, refinancing, or business acquisitions.
Repayment terms
Generally up to 10 years; up to 25 years for eligible real estate.
Loan size, interest rate, collateral, and repayment terms depend on the specific product and lender’s review. Rates may be fixed or variable and are subject to SBA limits.
The SBA guarantees a portion of the lender’s loan—not the borrower’s repayment obligation. An SBA guarantee does not eliminate personal guarantees or make approval automatic.
02 / SBA Loan Programs
504 Loans: Major fixed-asset investment
The 504 program provides long-term, fixed-rate financing for major fixed assets that support business growth and job creation. A typical project combines a lender’s loan, a CDC loan, and the borrower’s contribution.
Eligible uses
Eligible owner-occupied real estate, facilities, and long-term machinery or equipment.
Repayment terms
10-, 20-, or 25-year maturities for the SBA-backed portion.
The maximum SBA-backed amount depends on the project category; eligible projects can qualify for up to $5.5 million. This is not the same as the total project cost.
504 loans cannot generally fund working capital or inventory, speculative activities, or investment in rental real estate. Certain refinancing projects may qualify under program rules.
03 / SBA Loan Programs
Microloans: Smaller startup & growth needs
SBA microloans help small businesses and certain nonprofit childcare centers start or expand. Applications are handled by local nonprofit intermediary lenders, not by large banks under the microloan program.
Eligible uses
Working capital, inventory, supplies, furniture, fixtures, machinery, and equipment.
Repayment terms
Up to 7 years; rates and terms vary by intermediary.
Each intermediary sets its own credit requirements. Collateral and a personal guarantee are generally required; startup eligibility does not mean easy or guaranteed approval.
Microloan proceeds cannot be used to purchase real estate or pay existing debts. Intermediaries may also offer training and technical assistance.
Beyond the Main Programs
Specialized 7(a) Options & Disaster Loans
A general-purpose term loan is not the only option. Some programs address export activity, seasonal needs, or a declared disaster.
- SBA Express
- A 7(a) option with a maximum loan amount of $500,000. A faster SBA response is not a promise of lender approval or funding within a fixed time.
- Export & international trade
- Export Express, Export Working Capital, and International Trade loans serve different export-related needs. Discuss the specific use of funds and eligibility with a participating lender.
- CAPLines
- Seasonal, Contract, Builders, and Working CAPLines address eligible short-term or cyclical working-capital needs. They are specialized 7(a) products, not interchangeable general-purpose credit lines.
- Working Capital Pilot
- A monitored 7(a) line-of-credit program for eligible transaction-based or asset-based working-capital needs. Ask the lender about operating-history, reporting, and borrowing requirements.
Disaster assistance is different
SBA makes disaster loans directly to eligible applicants. They address qualifying physical damage or economic injury connected to declared disasters—not unrestricted everyday financing. Availability, uses, limits, and terms depend on the program and disaster declaration.
Check SBA disaster assistanceBefore You Apply
Prepare a Lender-Ready Application
There is no single score, collateral rule, or document list that applies to every SBA loan. Ask the lender or intermediary for the requirements for your specific product.
- 1
Confirm business eligibility
Review the program’s size standards, eligible activities, location, ownership requirements, and permitted use of funds with the lender.
- 2
Show a realistic repayment plan
Prepare financial statements, tax returns when available, cash-flow projections, existing debts, and a clear explanation of how the loan will support the business.
- 3
Review credit and obligations
Lenders assess creditworthiness. There is no universal personal-credit score or tradeline count that guarantees approval across all SBA products.
- 4
Understand collateral & guarantees
Requirements vary by program and loan size. Owners holding 20% or more generally must personally guarantee 7(a) and 504 loans; confirm the applicable terms.
- 5
Keep ownership records accurate
Provide consistent entity, ownership, registration, and operating-history information. A formation date is not proof of revenue or time actively trading.
- 6
Compare the full borrowing cost
Review interest rates, repayment schedules, guaranty or other fees, required equity, and any prepayment terms before accepting an offer.
Keep the Records Clear
Company Age Is Not Business Credit
An aged LLC or shelf corporation has an existing legal formation date. That date does not establish years of active operations, revenue, a payment history, or eligibility for an SBA loan.
- Disclose current ownership and actual operating history accurately.
- Review business credit reports and dispute errors with the reporting agency.
- A D-U-N-S number or PAYDEX score does not cancel a personal guarantee.
- Use credit for real business needs, not to collect a promised number of tradelines.
Verify Before Borrowing
Official SBA Resources
Program rules and lender terms can change. Verify the current requirements directly with SBA and a participating lender before applying.
Common Questions
SBA Loan FAQs
For 7(a) loans, participating lenders make the loans and SBA guarantees a portion. 504 financing involves Certified Development Companies and lenders; microloans come through nonprofit intermediaries. SBA makes disaster loans directly to eligible applicants.
7(a) loans and microloans can cover eligible working-capital needs. Specialized 7(a) credit lines may also fit. The 504 program is intended for eligible major fixed assets, not ordinary working capital or inventory.
No. Maturities, rates, fees, and structures differ by program and lender. Some 7(a) loans have variable rates, and a low monthly payment does not necessarily mean a low total borrowing cost.
Some programs can support eligible startups. The lender or intermediary still evaluates creditworthiness, repayment ability, the business plan, and any required contribution or collateral. Not every product is available to a new business.
No. A D-U-N-S number identifies a business; it does not replace underwriting or cancel personal-guarantee requirements. A business credit score also does not guarantee an SBA loan.
No. An older legal formation date is not operating history, cash flow, or creditworthiness. Lenders review the current business and ownership. Describe the entity’s formation date and your actual business activity accurately.
A Separate Business Decision
Considering a Shelf Company?
Review available entities, formation records, transfer documentation, and pricing. Choose a business structure on its merits—not on a promise of loan approval.
Add-On: Aged Domains
Pair Your Aged Company With an Aged Domain
A domain registered 5+ years with real activity helps your company's online presence match its formation date during bank, vendor and lender reviews. It supports verification; it never guarantees approval.