SBA loans
SBA Loans: Government-Backed Funding at the Longest Terms We Offer
An SBA loan is partially guaranteed by the U.S. Small Business Administration, which is what makes 5-to-25-year terms, capped rates and amounts up to $5 million possible. RAN Funding pre-screens your file, packages it and places it with SBA lenders in our network — and tells you up front if a faster product is the better fit.
What Is an SBA Loan, and How Is It Different?
An SBA loan is made by a participating lender and partially guaranteed — 50% to 85% — by the U.S. Small Business Administration. The guarantee lets the lender approve businesses, loan sizes and terms it would not take on alone: up to $5 million through the 7(a) program, up to $5 million more through 504, terms of 5 to 25 years depending on the program, and rates capped at Prime plus 3.0% to 6.5%. In exchange, SBA loans take 30 to 90 days, require two years of tax returns and a full financial package, and since 2025 require a 10% equity injection on start-ups and business purchases. RAN Funding is a broker, not a lender: we arrange SBA loans from $50,000 to $5 million through our lender network, and we also arrange the faster products that fit when SBA does not.
A Safety Net That Unlocks More Capital
The SBA guarantee backs part of the lender’s loan. That is what lets lenders offer larger amounts over longer terms than they otherwise would, at rates the SBA caps. Our SBA marketplace loans are secured by the business and a personal guarantor.
Buy a business, buy a building, refinance expensive debt, fund equipment or permanent working capital. Our team learns what your business needs and tells you honestly whether an SBA loan is the right route — or whether a faster product gets you there with less friction.
What to Have Ready Before You Apply
Documents Required
- Personal tax returns for 2 years
- Business tax returns for 2 years
- Year-to-date profit and loss and balance sheet
- Business bank statements
- Personal financial statement (SBA Form 413)
- Business debt schedule
- Voided business check and driver’s license
Typical Partner Screening Criteria
- Time in business: 2 years
- Annual revenue: $250,000+ (2 years of tax returns)
- Credit score: 680+
- No bankruptcies
- No outstanding collection accounts
- 10% equity injection on start-ups and purchases
Ready to See Your Options?
No obligation and a soft inquiry to check. A funding specialist comes back with the offers you qualify for and tells you whether SBA is realistic for your file.
The Complete Guide to SBA Loans in 2026
The SBA Loan Programs, Compared
“SBA loan” covers several programs with different limits, structures and speeds. The 7(a) is the one most businesses mean; the 504 is for property and heavy equipment; Express is the fast lane inside 7(a); microloans serve the smallest requests.
| Program | Maximum | Best for | Rate basis | Term | Typical time |
|---|---|---|---|---|---|
| 7(a) Standard | $5,000,000 | Working capital, equipment, refinancing, buying a business, real estate | Prime + capped spread, or fixed | Up to 10 years; 25 for real estate | 30–60 days |
| 7(a) Small Loan | $350,000 | Smaller working-capital and equipment needs | Same as 7(a) | Same as 7(a) | 30–45 days |
| SBA Express | $500,000 | Speed; revolving lines of credit | Prime + 4.5% to 6.5% cap | Up to 10 years | 2–4 weeks |
| 504 | $5,000,000 SBA portion ($5.5M manufacturing/energy) | Owner-occupied real estate, construction, long-life equipment | Fixed for the full term | 10, 20 or 25 years | 60–120 days |
| 7(a) CAPLines | $5,000,000 | Revolving or short-term lines for working capital, seasonal needs, specific contracts or builders | Same as 7(a) | Up to 10 years | 45–90 days |
| 504 Refinance | $5,000,000 SBA portion | Refinancing existing commercial real estate or equipment debt, with or without expansion; cash-out for operating expenses up to 20% of value | Fixed for the full term | 10, 20 or 25 years | 60–120 days |
| Microloan | $50,000 | Very small or very new businesses | Set by intermediary | Short | 2–6 weeks |
| Export Express / International Trade | $500,000 / $5,000,000 | Exporters | Same as 7(a) | Up to 10–25 years | Varies |
How an SBA loan is shared between the lender and the SBA
SBA Express carries a 50% guarantee. The guarantee protects the lender; the borrower and personal guarantors remain liable for the whole loan.
Detailed comparison: SBA 7(a) vs 504 and SBA Express loans.
How an SBA Loan Works, Step by Step
- Pre-qualification (days). A RAN Funding specialist reviews credit, tax returns and bank statements against the SBA lenders’ criteria and tells you whether SBA is realistic. Soft inquiry only.
- Packaging (1–2 weeks). SBA Form 1919, personal financial statements, two years of business and personal returns, year-to-date financials, debt schedule, use-of-funds memo and entity documents are assembled into one package.
- Lender underwriting (2–4 weeks). The lender verifies tax transcripts, calculates debt service coverage, values collateral and writes the credit memo. Questions come back in rounds.
- Approval and SBA loan number (days to 3 weeks). A Preferred Lender approves under delegated authority; other lenders submit to the SBA for review.
- Closing (1–2 weeks). Commitment letter, insurance, entity documents, equity injection verification, any appraisal or environmental report, then signing.
- Funding. Funds are wired, typically 30 to 60 days after a complete application on a 7(a) loan.
Full timeline and what slows it down: how long does it take to get an SBA loan?
SBA Loan Eligibility and Requirements in 2026
There are two layers. The SBA’s eligibility rules decide whether a loan can carry the guarantee; the lender’s credit policy decides whether it wants to make the loan.
| SBA rule | Typical lender bar | RAN Funding SBA screen | |
|---|---|---|---|
| Business type | For-profit, U.S.-based, inside SBA size standards | Same | Same |
| Ownership | 100% U.S. citizens or nationals (since March 2026; under legal challenge) | Same | Same |
| Time in business | No minimum | 2+ years | 2 years |
| Personal credit | No minimum (SBSS score retired March 2026) | 680+ | 680+ |
| Revenue / cash flow | Ability to repay | DSCR 1.10x+; 1.25x on acquisitions | $250,000+ annual revenue on two years of business tax returns |
| Credit history | No delinquent federal debt | No open collections, liens or recent bankruptcy | No bankruptcies; no outstanding collections |
| Equity injection | 10% on start-ups and business purchases | Same; lenders may ask more. Home equity is the most common source; see business HELOC | Same |
| Collateral | Required if available; none at $50,000 or less | Business assets; personal real estate over $350,000 if needed | Per lender |
Full checklist and the 2025–2026 rule changes: SBA loan requirements. Credit detail: what credit score you need. Equity detail: SBA loan down payment.
What an SBA Loan Costs
SBA capital is the cheapest we arrange. Three numbers describe the cost: the rate, the upfront guaranty fee, and the lender’s closing costs.
| 7(a) loan size | Maximum variable rate (Prime 7.00%) | Upfront guaranty fee (FY2027) |
|---|---|---|
| $50,000 or less | 13.50% | 2% of guaranteed portion |
| $50,001 to $150,000 | 13.00% | 2% of guaranteed portion |
| $150,001 to $250,000 | 13.00% | 3% of guaranteed portion |
| $250,001 to $350,000 | 11.50% | 3% of guaranteed portion |
| $350,001 to $700,000 | 10.00% | 3% of guaranteed portion |
| $700,001 to $1,000,000 | 10.00% | 3.5% of guaranteed portion |
| $1,000,001 to $5,000,000 | 10.00% | 3.5% up to $1M guaranteed, 3.75% above |
Rates are ceilings; lenders frequently price below them for strong files. Current figures and the 504 debenture rates are on SBA loan rates right now; every fee is itemized on SBA loan fees explained.
What Changed in SBA Lending in 2025–2026
If you last looked at SBA loans before mid-2025, the rules have moved. The most consequential changes:
| Change | Effective | Who it affects |
|---|---|---|
| 10% equity injection restored on start-ups and business purchases | 1 June 2025 | Buyers and new businesses |
| Merchant cash advances and factoring no longer eligible for SBA refinancing | 1 June 2025 | Owners with stacked advances |
| 7(a) Small Loan ceiling cut from $500,000 to $350,000 | 1 June 2025 | Loans of $350,001 to $500,000 now get full underwriting |
| FICO SBSS pre-screen retired; 1.10x cash-flow floor on 7(a) small loans | 1 March 2026 | All small-loan applicants |
| Ownership limited to U.S. citizens and nationals | 1 March 2026 | Businesses with permanent-resident owners (rule under legal challenge) |
| Combined 7(a) + 504 limit raised from $5 million to $10 million | 4 July 2026 | Larger projects and manufacturers |
| SOP 50 10 8.1: 1.25x coverage on acquisitions on historical results, earn-outs prohibited, 90-day personal financial statements, QoE report on $3M+ purchases | 1 October 2026 | Business buyers and sellers |
| FY2027 fee schedule with waivers for manufacturers, food supply chain and rural businesses | 1 October 2026 | Eligible borrowers up to $700,000 |
What Business Owners Use SBA Loans For
The long term is what makes SBA financing fit planned, larger investments rather than short cash gaps. The uses we see most in our network:
- Buying a business or buying out a partner — the largest category of 7(a) lending, now underwritten at 1.25x historical coverage with 10% equity. See business acquisition loans.
- Owner-occupied real estate — a 504 for the building, often paired with a 7(a) for working capital.
- Equipment and build-outs — dental and medical practices, auto repair bays, manufacturing lines, restaurant kitchens. See SBA 7(a) loan sizes by industry.
- Refinancing expensive debt — term loans and lines of credit, but not merchant cash advances, into one long-term payment.
- Permanent working capital — funding growth over ten years instead of rolling short-term products.
- Franchise purchases — for brands listed in the SBA Franchise Directory.
When SBA Is Not the Right Tool
SBA loans are slow and demanding by design. They are the wrong answer for a payroll gap this Friday, a supplier deadline next week, or a business with credit under 680 and several daily-pay advances. For those situations we arrange products that fund in one to three days on three months of bank statements, at a cost that reflects the speed.
| Need | Better fit | Funds in |
|---|---|---|
| Capital in under a week | Business term loan or working capital loan | 24–72 hours |
| Recurring cash-flow gaps | Business line of credit | 48–72 hours |
| Credit under 650 | Revenue-based financing | 72 hours |
| A specific machine or vehicle | Equipment financing | 48–72 hours |
| Slow-paying B2B customers | Invoice factoring | About a week |
| Under two years in business | Term loan now, SBA refinance later | 24–72 hours |
| Own a home with equity and cannot wait 60 days | Business HELOC — up to $750,000 over 10 to 30 years | As few as 5 days |
Many owners use one of these as a bridge while the SBA application runs in parallel. See SBA loan vs term loan, SBA loan vs bank loan and what to do if you are denied.
The Lowest-Cost Route, for Owners Who Can Wait
SBA-backed loans carry the longest terms and lowest rates we place, in exchange for a fuller file and a longer process. A specialist tells you up front whether your business is a realistic candidate before you spend weeks on paperwork.
- Program-specific amounts. Up to $5 million per program, $10 million combined.
- A complete financial file. Two years of returns, current financials and a debt schedule on day one.
- One specialist. The same person from application to funding — paid by the funder, not by you.
Go Deeper on SBA Loans
Every question we get about SBA financing, answered in depth.
What Happens After You Apply With RAN Funding
Your application is handled in house. One RAN Funding specialist reads your statements the same day, presents the file to the best-matched funders in our network for the best deal (not to a list of a hundred), brings the approvals back and compares total payback, payment and term with you. Your information is not resold as a lead, and you are not contacted by lenders you never chose; you hear from one person, in English or Spanish, from the first call through funding and renewal.
- One application, one soft pull, three months of bank statements.
- One specialist, not a call list.
- Offers side by side with total payback before you decide.
- Business financing only: working capital, lines of credit, term loans, equipment, receivables and SBA.
How this differs from a loan marketplace is laid out in RAN Funding vs. Lendio, Fundera and LendingTree.
SBA Loan Questions, Answered
What is an SBA loan?
An SBA loan is a business loan made by a participating bank or non-bank lender and partially guaranteed by the U.S. Small Business Administration. The guarantee (50% to 85%) lets the lender offer larger amounts, longer terms and capped rates to businesses that would not qualify for the same loan on conventional terms. The SBA does not lend directly.
How much can you borrow with an SBA loan?
Up to $5 million through the 7(a) program and up to $5 million through the 504 program. Since 4 July 2026 the two are counted separately, so a borrower can hold up to $10 million combined. SBA Express is capped at $500,000 and microloans at $50,000. RAN Funding arranges SBA loans from $50,000 to $5 million.
What are the requirements for an SBA loan?
SBA eligibility: a for-profit U.S. business inside SBA size standards, owners who are U.S. citizens or nationals, no delinquent federal debt and the ability to repay. Lender requirements: typically two years in business, a 680+ personal credit score, debt service coverage of at least 1.10x (1.25x on business purchases) and a 10% equity injection on start-ups and acquisitions. RAN Funding screens at two years, $250,000+ annual revenue on two years of business tax returns, 680+ credit, no bankruptcies and no outstanding collections.
How long does an SBA loan take?
Plan on 30 to 60 days with a Preferred Lender for a standard 7(a) loan, two to four weeks for SBA Express, and 60 to 120 days for a 504 real estate loan. A complete document package on day one is the biggest single time saver.
What is the interest rate on an SBA loan?
SBA 7(a) rates are capped at Prime plus 3.0% to 6.5% depending on loan size. With Prime at 7.00% in October 2026 the ceilings are 13.50% on loans of $50,000 or less down to 10.00% above $350,000; lenders often price below the cap. SBA 504 debentures were fixed at roughly 6.60% to 6.98% in October 2026.
Do SBA loans require a down payment?
Not for working capital, equipment or refinancing loans to an existing business. Start-ups and business purchases require an equity injection of at least 10% of total project cost. SBA 504 loans require a 10% borrower contribution, 15% to 20% for start-ups and special-purpose property.
Can I get an SBA loan with bad credit?
Most 7(a) and 504 lenders want 680 or higher. Some accept 650 on smaller loans with strong cash flow, and SBA microloan intermediaries work with lower scores. Below that, non-SBA products underwritten on bank deposits are the realistic route, with an SBA refinance once credit recovers.
Can an SBA loan pay off a merchant cash advance?
No. Since 1 June 2025 merchant cash advances and factoring agreements are not eligible debts for SBA refinancing. Retire them from cash flow, with a term loan, or with a reverse consolidation that replaces several daily debits with one lower weekly payment, then apply for SBA once the advances are closed.
Is RAN Funding an SBA lender?
No. RAN Funding is a business financing broker. We pre-screen your file, package it and place it with SBA lenders in our network that already lend in your industry and at your loan size. If SBA is not realistic for your file, we show you the faster products you do qualify for.
What can an SBA loan be used for?
7(a) loans can fund working capital, inventory, equipment, leasehold improvements, business purchases, partner buyouts, refinancing of eligible debt and commercial real estate. 504 loans are limited to owner-occupied real estate, construction and long-life equipment.
¿Prefiere español? Lea esta página en español.
The credit, revenue and operating-history figures on this page describe RAN Funding’s screening criteria, not SBA eligibility rules. A participating lender determines eligibility, pricing, fees and timing. See the official SBA 7(a) program overview and how RAN Funding works as a broker. Reviewed 14 October 2026.
Not Quite Right? Compare the Alternatives
Need $500,000 to $2 Million?
Larger requests are reviewed differently: more documents, a closer look at cash flow and a smaller group of lenders. Through RAN Funding, established businesses can access up to $2 million funded in as little as 72 hours once approved, and up to $5 million through SBA loans. Start with the guide for your amount.