Compare SBA Loan Options for Your Business
SBA-backed financing may help an eligible small business fund working capital, equipment, an acquisition, owner-occupied real estate or other approved business purposes. The correct program depends on what the business needs to finance, the requested amount, repayment ability, project structure and the participating lender or intermediary.
The SBA does not automatically approve every applicant or usually make these business loans directly. A participating lender, Certified Development Company or approved intermediary reviews the transaction, makes the credit decision and sets permitted terms within applicable program rules.
Exploring options is not an application or commitment. Eligibility, approval, program, amount, rate, fees, collateral, closing and timing are not guaranteed.
What a provider may review
Start with the use of proceeds. SBA 7(a) is the broadest primary program and may support working capital, equipment, eligible debt refinancing, real estate and qualifying changes of ownership. SBA 504 focuses on long-term fixed assets such as owner-occupied real estate and qualifying long-life equipment. Microloans provide smaller loans through approved nonprofit intermediaries. The 7(a) Working Capital Pilot supports monitored lines of credit for eligible operating businesses.
A guarantee is not borrower protection: An SBA guaranty protects an eligible portion of the lender’s exposure if program requirements are satisfied. It does not erase the borrower’s repayment obligation, prevent collateral enforcement, eliminate guarantor liability or convert the loan into a grant.
Which Program Fits the Objective?
Scroll the table sideways to see all columns.
| Business objective | Likely starting path | Important limitation |
|---|---|---|
| Flexible multi-purpose financing | Likely starting pathSBA 7(a) | Important limitationLender and SBA program conditions apply |
| Owner-occupied real estate or long-life equipment | Likely starting pathSBA 504 | Important limitationNot for working capital, inventory or passive investment property |
| Smaller startup or expansion need | Likely starting pathSBA Microloan | Important limitationUp to $50,000; the intermediary controls the decision and terms |
| Receivables, inventory, contracts or projects | Likely starting path7(a) Working Capital Pilot | Important limitationA monitored line with reporting and collateral controls |
| Immediate emergency funding | Likely starting pathCompare all options | Important limitationSBA processing may not match an urgent deadline |
SBA Fit Navigator
Assumptions: This navigator organizes questions and routes content only. It does not predict eligibility, approval, a rate, a fee, a guarantee percentage, a collateral decision or a closing date. Do not enter a tax ID, bank credentials or any document. Nothing entered is stored or transmitted.
Programs and topics to compare
- Select an option above to see which programs may be worth comparing.
This navigator organizes questions and routes content; it does not determine eligibility, approval, program qualification, amount, pricing, fees, guarantee percentage, collateral requirements or closing dates. SBA rules and the participating lender, CDC or intermediary control. Compare written terms with independent providers and with qualified legal, tax and accounting advisers.
How SBA-Backed Lending Works
- The business identifies a specific eligible financing need.
- A participating lender, CDC or intermediary screens program fit and lender-specific credit requirements.
- The applicant supplies ownership, financial, tax, debt, project and use-of-proceeds records.
- The provider underwrites repayment ability, eligibility, management, credit, equity, collateral and transaction structure.
- The provider uses an authorized SBA processing path and obtains any required SBA authorization or guarantee.
- Closing conditions, liens, insurance, equity injection and documentation are completed.
- The borrower uses proceeds only as authorized and follows payment and servicing requirements.
Program Comparison
Scroll the table sideways to see all columns.
| Program | Best known for | Official maximum or structure | Apply through |
|---|---|---|---|
| 7(a) | Best known forBroad eligible business purposes | Official maximum or structure$5 million maximum | Apply throughParticipating SBA lender |
| 504 | Best known forMajor fixed assets | Official maximum or structure$5.5 million maximum; 10-, 20- and 25-year maturities | Apply throughCertified Development Company with a senior lender |
| Microloan | Best known forSmaller startup and expansion needs | Official maximum or structure$50,000 maximum; up to seven years | Apply throughSBA-approved nonprofit intermediary |
| 7(a) Working Capital Pilot | Best known forMonitored working-capital line | Official maximum or structure$5 million maximum; up to 60 months | Apply throughParticipating SBA lender |
SBA 7(a)
The 7(a) program is SBA’s primary business loan program. Official SBA materials list eligible uses including acquiring, refinancing or improving real estate and buildings; short- and long-term working capital; refinancing eligible business debt; purchasing machinery, equipment, furniture, fixtures and supplies; and complete or partial changes of ownership. The maximum loan amount is $5 million.
Scroll the table sideways to see all columns.
| Good starting fit | Verify before proceeding |
|---|---|
| Multiple eligible business purposes | Verify before proceedingExact proceeds allocation and lender policy |
| Business acquisition or partner buyout | Verify before proceedingValuation, buyer equity, seller terms and change-of-ownership rules |
| Working capital plus equipment | Verify before proceedingMaturity allocation and cash-flow support |
| Owner-occupied real estate | Verify before proceedingOccupancy, appraisal, environmental and construction conditions |
| Eligible debt refinancing | Verify before proceedingOriginal use, payment history and demonstrable benefit |
SBA 504
The 504 program provides long-term fixed-rate financing for major fixed assets that promote business growth and job creation. A Certified Development Company works with a senior lender. SBA’s public page lists a maximum 504 loan of $5.5 million and 10-, 20- and 25-year maturities.
Scroll the table sideways to see all columns.
| Potential use | Do not read this as implying |
|---|---|
| Purchase, construct or renovate eligible owner-occupied facilities | Do not read this as implyingThat all investment real estate qualifies |
| Long-life machinery and equipment | Do not read this as implyingThat working capital can be included automatically |
| Certain qualified debt refinancing | Do not read this as implyingThat any old debt can be refinanced |
| Expansion tied to eligible economic-development objectives | Do not read this as implyingThat jobs or policy goals can be ignored |
SBA Microloans
SBA Microloans are made through approved nonprofit intermediaries. The official maximum is $50,000, and SBA reports an average microloan of about $13,000. Proceeds may support working capital, inventory, supplies, furniture, fixtures, machinery and equipment, but cannot be used to pay existing debts or purchase real estate. The maximum repayment term is seven years, and the intermediary makes the credit decision and sets terms.
7(a) Working Capital Pilot
The 7(a) Working Capital Pilot is a monitored line-of-credit option for eligible businesses. SBA identifies potential users including manufacturers, wholesalers and professional-services firms with at least one year of operating history that can produce timely financial statements, receivables and payables agings and inventory reports. It may support domestic or export transactions, large contracts and borrowing against receivables or inventory.
Scroll the table sideways to see all columns.
| Feature | Official public-page framework |
|---|---|
| Maximum amount | Official public-page framework$5 million |
| Maximum maturity | Official public-page framework60 months |
| Guarantee | Official public-page framework85% at $150,000 or less; 75% above $150,000 |
| Pricing cap tiers | Official public-page framework$50,000 or less: base + 6.5%; $50,001–$250,000: base + 6.0%; $250,001–$350,000: base + 4.5%; $350,001 and above: base + 3.0% |
| Operational expectation | Official public-page frameworkAccurate periodic financial, receivables, payables and inventory reporting |
Eligible Business Basics
General SBA eligibility is only the first screen. Official program pages generally require an operating, for-profit business located in the United States, small under SBA size standards, not engaged in an ineligible business type, and able to demonstrate creditworthiness and a reasonable ability to repay. For 7(a), the business also must not be able to obtain the desired credit on reasonable terms from non-government sources.
Questions a provider may evaluate
- What the business sells and how it earns revenue.
- Business location, ownership, affiliates and size-standard calculations.
- Purpose and traceable use of every dollar of proceeds.
- Historical and projected ability to repay from business cash flow.
- Management experience, operating history and business plan.
- Business and owner credit history, prior government debt and legal disclosures.
- Available collateral, lien position, insurance and guarantor support.
- Equity injection or source of funds where the transaction requires it.
Use of Proceeds by Program
Scroll the table sideways to see all columns.
| Use | 7(a) | 504 | Microloan | Working Capital Pilot |
|---|---|---|---|---|
| Working capital | 7(a)Potentially eligible | 504Not eligible | MicroloanPotentially eligible | Working Capital PilotCore use |
| Inventory and supplies | 7(a)Potentially eligible | 504Not eligible | MicroloanPotentially eligible | Working Capital PilotMay support an eligible borrowing base |
| Equipment | 7(a)Potentially eligible | 504Long-life fixed assets | MicroloanPotentially eligible | Working Capital PilotTransaction-dependent |
| Owner-occupied real estate | 7(a)Potentially eligible | 504Core use | MicroloanNot eligible | Working Capital PilotNot a primary use |
| Business acquisition | 7(a)Potentially eligible | 504Not stand-alone acquisition capital | MicroloanNot a primary use | Working Capital PilotNot a primary use |
| Eligible debt refinance | 7(a)Potentially eligible | 504Qualified debt only | MicroloanNot eligible | Working Capital PilotTransaction-dependent |
What Providers May Review
Scroll the table sideways to see all columns.
| Review area | Possible evidence | What it helps test |
|---|---|---|
| Historical cash flow | Possible evidenceTax returns, profit and loss, balance sheets, bank statements | What it helps testRepayment capacity and trends |
| Projections | Possible evidenceForecast, assumptions, contracts, pipeline | What it helps testFuture repayment and execution risk |
| Existing debt | Possible evidenceDebt schedule, statements, agreements | What it helps testTotal obligations and refinance structure |
| Ownership | Possible evidenceFormation records, ownership schedule, resumes | What it helps testEligibility, control and management |
| Project | Possible evidencePurchase agreement, bids, invoices, leases | What it helps testEligible use and required amount |
| Equity | Possible evidenceStatements and transfer trail | What it helps testSource, seasoning and injection |
| Collateral | Possible evidenceAppraisals, lien searches, titles, schedules | What it helps testValue, priority and closing conditions |
| Credit and character | Possible evidenceCredit reports and required disclosures | What it helps testPayment history and program integrity |
Cash Flow Comes Before a Headline Rate
A lower stated rate does not make a loan affordable. Model monthly debt service using the expected funded amount, rate structure, maturity and fees. Stress-test lower revenue, margin compression, a delayed opening, construction overruns, rate changes and acquisition transition costs.
Collateral and Guaranties
Collateral treatment depends on the program, loan size, lender policy and available assets. A collateral shortfall does not always decide the application by itself, but a borrower generally should expect the lender to take available collateral as required and to document lien position.
Owners should review all personal-guaranty, spousal-signature, life-insurance and default provisions with qualified advisers before signing.
Equity Injection
There is no universal SBA down payment. Required borrower equity varies by program and transaction, and can be affected by startup status, acquisition structure, property type, special-purpose assets, appraisal, lender policy and current SBA rules. Verify the amount, acceptable sources, timing and documentation before moving funds.
Business Acquisition Financing
- Identify whether the transaction is an asset purchase, equity purchase, partner buyout or partial change of ownership.
- Document valuation, purchase price allocation, buyer experience, working-capital need and post-close liquidity.
- Identify seller financing, standby requirements, earnouts and any noncompete or consulting terms.
- Model add-backs conservatively and reconcile tax returns, financial statements and debt-service assumptions.
- Confirm required equity and source-of-funds evidence before signing nonrefundable commitments.
Owner-Occupied Real Estate
- Confirm occupancy rules, affiliate ownership and eligible project costs.
- Plan for appraisal, environmental review, title, survey, insurance and construction documentation.
- Separate business-use property from passive investment property.
- Compare 7(a) flexibility with the 504 bank and CDC structure.
- Budget for interim financing, closing costs, contingencies and timing risk.
Debt Refinancing
- Trace the original proceeds and current use.
- Document payment history, balance, rate, maturity and collateral.
- Show the business benefit and improved payment or structure where required.
- Identify any lender, affiliate or insider debt limitations.
- Do not assume that delinquent, defaulted or ineligible debt can be refinanced.
Rates, Fees, Terms and Payments
Scroll the table sideways to see all columns.
| Cost or term | What to compare | Control |
|---|---|---|
| Interest rate | What to compareFixed or variable; base; spread; reset; floor | ControlDo not rely on unsourced current rates |
| SBA guaranty fee | What to compareAmount financed, waived or payable; current program schedule | ControlVerify current fiscal-year rules |
| Lender fee | What to comparePackaging, closing or permitted charges | ControlItemize and verify permissibility |
| Third-party costs | What to compareAppraisal, environmental, title, legal, filing | ControlObtain estimates and a refund policy |
| Maturity | What to compareUseful life, purpose and program limit | ControlMatch the payment to the asset or need |
| Prepayment | What to comparePenalty or subsidy recoupment where applicable | ControlReview the exact note and program |
| Payment | What to comparePrincipal, interest, timing and variable-rate effect | ControlModel a stressed payment |
| Closing conditions | What to compareEquity, liens, insurance, documents and approvals | ControlTrack in writing |
Document Readiness
Scroll the table sideways to see all columns.
| Category | Prepare |
|---|---|
| Identity and ownership | PrepareGovernment ID, formation records, ownership schedule, affiliates and resumes |
| Financial history | PrepareBusiness tax returns, interim profit and loss, balance sheet and cash-flow statement |
| Banking and debt | PrepareBusiness statements, debt schedule, notes and payoff statements |
| Projections | PrepareForecast, assumptions and opening or transition budget where relevant |
| Use of proceeds | PrepareInvoices, bids, purchase agreement, construction budget or refinance schedule |
| Acquisition | PrepareLetter of intent or purchase agreement, seller financials, valuation and transition plan |
| Real estate | PrepareProperty contract, leases, occupancy, plans, environmental and appraisal records |
| Collateral | PrepareAsset schedule, titles, lien information and insurance |
| Equity | PrepareSource statements and traceable transfer evidence |
| Legal and compliance | PrepareLicenses, good standing, litigation, bankruptcy and government-debt disclosures |
Financial statements, tax returns, identification and bank records belong in an authenticated, encrypted upload process with role-based access, retention and deletion rules. Never send these through ordinary email, a general website form or analytics.
Application Timeline
Scroll the table sideways to see all columns.
| Stage | Primary work | Delay risks |
|---|---|---|
| 1. Program screen | Primary workPurpose, amount, eligibility and timing | Delay risksWrong program or incomplete ownership facts |
| 2. Lender fit | Primary workSelect a lender, CDC or intermediary | Delay risksThe provider does not serve the transaction |
| 3. Complete package | Primary workFinancial, tax, project and ownership records | Delay risksMissing, stale or inconsistent documents |
| 4. Underwriting | Primary workCash flow, credit, collateral and eligibility | Delay risksUnexplained losses, debt or projections |
| 5. Authorization | Primary workProvider and SBA processing as applicable | Delay risksRule questions or a changed structure |
| 6. Closing diligence | Primary workAppraisal, environmental, title, liens, insurance | Delay risksThird-party reports and unresolved conditions |
| 7. Funding | Primary workEquity verified and documents executed | Delay risksWire verification or an unmet condition |
| 8. Servicing | Primary workPayments, reporting and approved use | Delay risksUnauthorized proceeds or missed covenants |
Who Does What
Scroll the table sideways to see all columns.
| Party | Role | What it does not mean |
|---|---|---|
| SBA | RoleSets program rules and provides eligible guarantees or program funding | What it does not meanSBA does not usually underwrite the borrower directly for these products |
| Participating lender | RoleOriginates, underwrites, closes and services eligible loans | What it does not meanParticipation does not require approval of every applicant |
| Certified Development Company | RoleNonprofit SBA partner that helps structure 504 financing | What it does not meanA CDC is not the senior bank lender |
| Microloan intermediary | RoleCommunity nonprofit that makes microloans and provides assistance | What it does not meanSBA does not make the borrower credit decision |
| ShopRates | RoleEducational comparison and referral platform | What it does not meanNot a lender, government agent or approval authority |
Offer Comparison Worksheet
Scroll the table sideways to see all columns.
| Field | Option A | Option B | Option C |
|---|---|---|---|
| Program and product | Option A | Option B | Option C |
| Legal lender, CDC or intermediary | Option A | Option B | Option C |
| Loan amount and proceeds allocation | Option A | Option B | Option C |
| Fixed or variable rate formula | Option A | Option B | Option C |
| Maturity and amortization | Option A | Option B | Option C |
| Estimated payment | Option A | Option B | Option C |
| SBA and lender fees | Option A | Option B | Option C |
| Third-party closing costs | Option A | Option B | Option C |
| Equity injection and source rules | Option A | Option B | Option C |
| Collateral and lien position | Option A | Option B | Option C |
| Personal guaranties | Option A | Option B | Option C |
| Prepayment provisions | Option A | Option B | Option C |
| Closing conditions | Option A | Option B | Option C |
| Estimated timeline and dependencies | Option A | Option B | Option C |
Compare the same funded amount and use of proceeds. Include fees, closing costs, required equity, the payment under a rate-change scenario, collateral, guaranties, prepayment exposure and the consequences of missing the business deadline. An indication is not approval, a commitment or final loan documents.
Readiness Test
Scroll the table sideways to see all columns.
| Scenario | Test | Action |
|---|---|---|
| Revenue decline | TestCan stressed cash flow still cover debt and operations? | ActionReduce the request, add liquidity or revise timing |
| Rate increase | TestWhat happens to the payment on a variable-rate loan? | ActionModel higher-rate cases |
| Project overrun | TestWho funds costs above budget? | ActionDocument contingency and sources |
| Acquisition transition | TestCan cash flow absorb customer or employee loss? | ActionUse a conservative forecast |
| Appraisal shortfall | TestHow does lower collateral value affect equity? | ActionPlan additional equity or restructure |
| Closing delay | TestWhat commitments expire or become nonrefundable? | ActionNegotiate extensions and a backup plan |
| Incomplete records | TestCan all figures reconcile across tax and interim records? | ActionCorrect records before submission |
These scenarios are educational planning prompts, not predictions. Model them against your own figures in your own document rather than sending them through a general website form.
Red Flags
- Guaranteed SBA approval, a guaranteed rate or a guaranteed closing date promised before underwriting.
- A company claims to be the SBA or uses government-looking seals without authorization.
- Advance fees requested by gift card, cryptocurrency or an unrelated account.
- Pressure to inflate revenue, hide debt, alter tax returns or misstate the use of proceeds.
- A demand for bank credentials, tax IDs or full financial records through ordinary email or a public form.
- No written identification of the actual lender, CDC, intermediary or product.
- A quoted payment that omits fees, variable-rate risk, balloon structure or closing costs.
- Instructions to move equity before the source, recipient and closing controls are verified.
- Claims that an SBA guarantee removes the borrower’s obligation or personal guaranty.
Tennessee and National Resources
SBA-backed financing is national, but lenders, CDCs and intermediaries choose markets and credit policies. ShopRates is based in Tennessee. Use official sources to confirm program rules, locate participating providers and obtain no-cost or low-cost business counseling.
Scroll the table sideways to see all columns.
| Authority | Use |
|---|---|
| SBA 7(a) | UseOfficial 7(a) overview, eligibility and Working Capital Pilot information |
| SBA 504 | UseOfficial 504 uses, restrictions, CDCs and maturities |
| SBA Microloans | UseOfficial maximum, uses, intermediaries and terms |
| SBA Lender Match | UseConnection tool; not an application or approval |
| SBA Local Assistance | UseSBDC, SCORE, WBC and VBOC resources |
| Tennessee SBA District Office | UseTennessee program and local-resource information |
| Tennessee SBDC | UseBusiness counseling and planning |
| SCORE | UseVolunteer business mentoring |
| FTC Report Fraud | UseReport suspected fraud |
Listing an authority is not affiliation, endorsement or a statement that ShopRates acts under its supervision. ShopRates is not the SBA and is not a government agency. Confirm current program rules directly with SBA and the participating provider.
Frequently Asked Questions
What is an SBA loan?
An SBA loan is financing made through an eligible lender or intermediary under an SBA program. SBA support may include a guaranty, but the provider makes the credit decision and the borrower remains responsible for repayment.
Does the SBA lend money directly to a business?
For the core programs on this page, businesses generally apply through participating lenders, Certified Development Companies or approved intermediaries rather than receiving a direct business loan from SBA.
What is the maximum SBA 7(a) loan amount?
SBA states that the maximum 7(a) loan amount is $5 million. A lender may approve less based on the request, program rules, repayment ability and its credit decision.
What is an SBA 504 loan used for?
A 504 loan may finance eligible major fixed assets such as owner-occupied real estate and qualifying long-life equipment. It generally cannot fund working capital, inventory or passive investment real estate.
How much can an SBA Microloan provide?
The SBA Microloan maximum is $50,000. Approved nonprofit intermediaries make credit decisions and set borrower terms within the program.
Can an SBA loan finance a business acquisition?
A 7(a) loan may support an eligible complete or partial change of ownership. The lender will review valuation, buyer experience, equity, seller terms, cash flow and the transaction structure.
Can SBA financing be used for working capital?
Potentially. 7(a), Microloan and the 7(a) Working Capital Pilot can support eligible working-capital needs, but permitted uses and underwriting differ.
Can an SBA loan buy investment real estate?
SBA business programs are not designed for passive investment in rental real estate. Owner-occupied business property may be eligible when program occupancy and other requirements are met.
Is there a standard SBA loan down payment?
No single equity requirement applies to every transaction. Program, startup status, acquisition or property structure, appraisal, collateral and lender policy can affect the required injection.
Are SBA loan rates fixed?
Fixed and variable structures may be available. The rate depends on the program, amount, maturity, base rate, lender agreement and applicable SBA limits.
Does SBA approval guarantee funding?
No. Funding can still depend on final lender approval, SBA authorization where required, satisfactory documents, collateral, equity, insurance and other closing conditions.
What documents are required?
Common records include business and personal tax returns, financial statements, bank statements, debt schedules, ownership records, projections and documents supporting the use of proceeds.
How long does an SBA loan take?
There is no universal timeline. Program, lender process, package completeness, appraisal, environmental review, title, collateral and transaction complexity can affect closing.
Do SBA loans require collateral or personal guarantees?
Requirements depend on the program, amount, available assets, ownership and lender policy. Review collateral and guaranty documents before signing.
Does ShopRates make SBA loans?
No. ShopRates is an independent informational and referral platform. It does not lend, broker, originate, underwrite, service or make SBA credit decisions.
Compare SBA Financing by Program and Purpose
Share your general business purpose, requested amount range, time in business, revenue range and timing. ShopRates can help organize the comparison questions and may connect you with independent providers. The provider — not ShopRates or SBA — determines eligibility, approval, program, amount, rate, fees, collateral and closing.
This is not an application, offer or commitment. Do not submit credentials, tax IDs, full account numbers or documents through a general inquiry.
RELATED RESOURCES
SBA Microloans
Equipment Financing
Core Funding
Sources
- SBA 7(a) Loan Program — sba.gov/loans/7a-loans
- SBA 504 Loan Program — sba.gov/loans/504-loans
- SBA Microloan Program — sba.gov/funding-programs/loans/microloans
- SBA 7(a) Working Capital Pilot Program — sba.gov
- SBA announcement: cumulative 7(a) and 504 limit raised to $10 million, effective 4 July 2026 — sba.gov
- SBA Lender Match — sba.gov
- SBA Local Assistance — sba.gov/local-assistance
- Tennessee SBA District Office — sba.gov/district/tennessee
- Tennessee Small Business Development Centers — tsbdc.org
- SCORE — score.org
- Federal Trade Commission — Report Fraud — reportfraud.ftc.gov
Program figures on this page were checked against SBA public pages on 29 September 2026. SBA sources describe federal programs delivered through participating lenders, Certified Development Companies and approved intermediaries; they do not create borrower entitlement, imply ShopRates affiliation or endorse any provider. Program rules and fee schedules change by fiscal year. Confirm current figures with SBA and the participating provider, and obtain qualified legal, tax and accounting advice.