Business loans · $5 million
How to Get a $5 Million Business Loan: SBA, Bank, Asset-Based and Equipment Routes
$5 million is the SBA 7(a) maximum, the top of what most online and revenue-based lenders will touch in aggregate, and the point where a business loan becomes a structured facility with covenants, appraisals and a lender that will visit. Businesses with $5 million to $50 million in revenue borrow it for acquisitions, real estate, equipment fleets, expansion and working capital, usually from two or three sources at once. This guide covers the four routes to $5 million in October 2026, what each costs with Prime at 7.00%, what lenders require, and how the pieces are combined.
How Do You Get a $5 Million Business Loan?
A $5 million business loan in October 2026 comes from one of four routes, often combined: (1) an SBA 7(a) loan up to $5 million at rates capped at Prime plus 3.0 (10.00%) for amounts over $350,000, over up to 25 years for real estate or ten for other uses, for businesses with two or more years of history, 680+ owner credit, cash flow coverage of 1.25x and a 10% equity injection on acquisitions; (2) an SBA 504 loan for real estate or heavy equipment, where the SBA debenture (about 6.3% to 7.0% fixed) covers 40% and a bank covers 50%, allowing projects of $12 million or more; (3) a conventional bank term loan or asset-based facility at 7% to 12%, for companies with $5 million or more in revenue, audited or reviewed financials, collateral and often a deposit relationship; and (4) equipment financing or a fleet facility at 6% to 14% secured by the equipment itself, which can reach $5 million on a single schedule. Online lenders and revenue-based funders top out around $500,000 to $1.5 million per facility and are not the route to $5 million. Through RAN Funding, a $5 million request is packaged once and presented to SBA lenders, banks, asset-based lenders and equipment lenders in the network; expect 30 to 90 days to close.
Four Routes to $5 Million
| Route | Maximum | Rate at Prime 7.00% | Term | Requirements | Time to close | Best for |
|---|---|---|---|---|---|---|
| SBA 7(a) | $5M | 10.00% cap over $350K (fixed caps higher) | 10 yrs; 25 real estate | 2+ yrs, 680+, 1.25x coverage, 10% equity on acquisitions | 45 – 90 days | Acquisitions, expansion, refinancing, mixed use |
| SBA 504 | $5M – $5.5M debenture (40%); project $12M+ | 6.3% – 7.0% fixed on debenture; bank portion 7% – 9% | 10, 20 or 25 yrs | Owner-occupied real estate or heavy equipment; 10% down | 60 – 120 days | Buildings, large equipment |
| Bank term loan or ABL | $1M – $50M | 7% – 12% | 3 – 7 yrs; revolving | $5M+ revenue, reviewed or audited financials, collateral, covenants | 30 – 60 days | Established companies, working capital at scale |
| Equipment or fleet financing | $5M+ per schedule | 6% – 14% | 3 – 7 yrs | 2+ yrs, 680+, equipment as collateral | 2 – 4 weeks | Fleets, production lines, medical and construction equipment |
Online and revenue-based lenders are not on this table because their per-facility maximums ($250,000 to $1.5 million) do not reach $5 million; stacking several of them to get there is the most expensive and fragile structure available.
What $5 Million Costs
| Structure | Rate | Term | Monthly payment | Total interest |
|---|---|---|---|---|
| SBA 7(a) at 10.00% | 10.00% | 10 years | $66,075 | $2.93M |
| SBA 7(a) real estate at 10.00% | 10.00% | 25 years | $45,435 | $8.63M |
| SBA 504 blended (40% at 6.75%, 50% bank at 8.5%, 10% equity) on a $5.56M project | ~7.7% blended | 25 years | ~$37,700 | ~$6.3M |
| Bank term loan | 8.5% | 7 years | $79,100 | $1.64M |
| Asset-based line, $5M fully drawn | Prime + 3 (10.00%) plus fees | Revolving | ~$41,700 interest-only | ~$500K per year plus fees |
| Equipment fleet | 9% | 5 years | $103,800 | $1.23M |
Annual debt service on $5 million, by structure
At $5 million the term drives the payment more than the rate; lenders size the structure to cash flow coverage of 1.25x or better.
Model structures in the business loan payment calculator; SBA rate detail in SBA loan rates.
What Lenders Require at $5 Million
- Financials: three years of business tax returns, year-to-date and prior-year financial statements (reviewed or audited for bank facilities), interim statements no older than 90 days, a debt schedule, A/R and A/P agings.
- Cash flow: debt service coverage of 1.25x or better on historical cash flow; 1.15x is sometimes accepted on SBA with strong projections.
- Owner credit and equity: 680+ personal credit for every 20% owner; 10% equity injection on SBA acquisitions and real estate; personal guarantees from all 20% owners.
- Collateral: SBA requires all available collateral up to the loan amount including personal real estate when business assets fall short; banks want a blanket lien, real estate or a borrowing base; equipment lenders take the equipment.
- Use of funds and projections: a written plan with sources and uses, three-year projections and, for acquisitions, a quality-of-earnings review or at least the target’s returns and financials.
- Entity and management: organizational documents, licenses, management résumés, succession on acquisitions.
Share of applicants fully approved, by product (Federal Reserve, 2026)
81% of applicants were approved for at least part of the request. Source: Federal Reserve Banks, 2026 Report on Employer Firms.
SBA specifics are in SBA loan requirements; acquisition structures in business acquisition loans.
How $5 Million Deals Are Usually Structured
- Acquisition: SBA 7(a) for $5 million plus a seller note (10% to 20% on standby) and 10% buyer equity; a separate working capital line opened at closing.
- Real estate plus operations: SBA 504 for the building (40% debenture, 50% bank) and a 7(a) or bank line for working capital and equipment.
- Growth capital: an asset-based revolver sized on receivables and inventory plus an equipment term loan; the revolver grows with sales.
- Refinance and expansion: a bank term loan to consolidate debt plus a 7(a) for the expansion, or a 7(a) alone up to $5 million where cash flow improves by a meaningful margin.
- Fleet or production line: an equipment master lease or loan schedule up to $5 million secured by the assets, kept separate from the operating facility so the blanket lien does not block it (a PMSI).
Timeline and Process
- Week 1: package the file (financials, projections, sources and uses, collateral schedule) and present it; through RAN Funding this goes to SBA, bank, ABL and equipment lenders at once.
- Weeks 2 – 3: term sheets and letters of interest; compare structure, covenants, guarantees and fees, not just rate.
- Weeks 3 – 6: underwriting, appraisals, environmental reports on real estate, field exams on ABL, SBA eligibility review.
- Weeks 6 – 10: commitment, closing documents, UCC and mortgage filings, funding. SBA 504 runs longer because the debenture funds after the bank closes.
- Throughout: no new debt without lender consent; keep deposits and receivables reporting clean.
Common Questions
Can I get a $5 million SBA loan?
Yes: $5 million is the SBA 7(a) maximum, and 504 debentures reach $5 million to $5.5 million on projects of $12 million or more. Requirements are two or more years in business, 680+ owner credit, 1.25x cash flow coverage, a 10% equity injection on acquisitions and real estate, personal guarantees and all available collateral. Rates are capped at Prime plus 3.0 (10.00%) on 7(a) amounts over $350,000.
What revenue do I need for a $5 million business loan?
Enough cash flow to cover the payment 1.25 times: roughly $1 million a year of free cash flow for a $5 million SBA 7(a) over ten years, which usually means $5 million to $15 million in revenue depending on margins. Real estate loans over 25 years need less; equipment loans are sized to the equipment.
How long does a $5 million business loan take?
Thirty to 60 days for a bank term loan or equipment facility, 45 to 90 days for an SBA 7(a) loan and 60 to 120 days for an SBA 504 loan. A complete package on day one is the biggest time saver.
Can I get $5 million from an online lender?
Not in one facility. Online term loans and lines top out around $250,000 to $500,000 and revenue-based products at $1 million to $1.5 million. Reaching $5 million by stacking several is expensive and usually breaches each lender’s terms; the routes are SBA, bank, asset-based and equipment lenders.
What interest rate can I expect on a $5 million loan?
In October 2026, about 10.00% on an SBA 7(a) loan over $350,000 (the Prime plus 3.0 cap), 6.3% to 7.0% fixed on the SBA 504 debenture portion, 7% to 12% at banks and asset-based lenders, and 6% to 14% on equipment, depending on credit, collateral and term.
Is RAN Funding a lender?
No. RAN Funding is a business financing broker. We present your application to our lender network and show you the offers you qualify for; the funding partner sets the approval, amount, rate, fees and terms.
Sources
- SBA 7(a) loan amounts, rates and terms — U.S. Small Business Administration
- SBA 504 loan program — U.S. Small Business Administration
- 2026 Report on Employer Firms: Findings from the 2025 Small Business Credit Survey — Federal Reserve Banks
- H.15 Selected Interest Rates (bank prime loan rate 7.00%) — Board of Governors of the Federal Reserve System
- Small Business Lending Survey, Second Quarter 2026 (released September 24, 2026) — Federal Reserve Bank of Kansas City
See What You Qualify For
One application, about five minutes, soft pull only. A funding specialist tells you up front which products fit your file, what they cost and how fast each one funds.
More on Large Loans