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SBA Loans for Small Business

Government-backed financing with long terms and competitive rates. Compare SBA 7(a), 504 and microloan offers from multiple SBA lenders.

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What Is It
What are SBA loans?

SBA loans are small business loans partially guaranteed by the U.S. Small Business Administration. Because the government backs a portion of the loan, private lenders can offer lower rates, longer terms and higher amounts than they otherwise would.

The main programs are the 7(a) loan (general purpose, working capital, acquisition), the 504 loan (real estate and heavy equipment) and the microloan (up to $50,000 for smaller needs). Through BidMyCapital you can compare SBA lenders alongside alternative funding to find the right fit.

How It Works
How SBA financing works
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Government-backed guarantee

The SBA guarantees part of the loan, reducing risk for the lender.

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Apply through a lender

SBA loans are issued by approved banks and lenders, not the SBA itself.

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Low rates, long terms

Terms of up to 10 years for working capital and 25 years for real estate.

Rates & Costs
SBA loan rates and terms

SBA 7(a) rates are capped and typically sit in the prime + 3% to prime + 6% range, far below many alternative products. The trade-off is paperwork and time — approval can take weeks. 504 loans offer fixed-rate financing for real estate over up to 25 years.

Eligibility
SBA loan requirements

For-profit U.S. business

The business must operate in the U.S. and be eligible under SBA rules.

2+ years in business

Most lenders prefer established businesses; startups are harder to place.

Credit 680+ typical

SBA lenders generally require strong personal credit and no defaults.

Repayment capacity

The loan must be repaid from business cash flow, documented in detail.

Related
Related funding guides
FAQ
Frequently asked questions
What is the SBA 7(a) loan?

The 7(a) is the SBA's flagship program, used for working capital, equipment, inventory and business acquisition. Loan amounts go up to $5 million with terms up to 10 years.

How long does an SBA loan take?

From application to funding typically takes 30 to 90 days. If you need cash faster, alternative revenue-based funding may bridge the gap while you wait.

Can I get an SBA loan with bad credit?

SBA lenders generally require strong credit (often 680+) and no recent defaults. Borrowers below that are usually better matched with revenue-based options.

What is the difference between 7(a) and 504?

The 7(a) is for general working capital and has flexible uses. The 504 is specifically for fixed assets like commercial real estate and heavy equipment, with terms up to 25 years.

How much can I borrow with an SBA loan?

7(a) loans go up to $5 million. 504 loans also reach $5 million for eligible real estate and equipment projects.

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