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Loan Type
Business Loan
Monthly Revenue
$20K-$30K
Time In Business
2 or more years
Credit Score
Good (690-719)
1
Fast Turnaround
9.6
ExceptionalBestMoneyscore
Popularity
Based on visits in the past 7 days
10.0
Brand Reputation
Based on web trends
9.5
Lendio
Loan Amount: $5K-$2M
Long-term financing available
Time in business: No minimum
Monthly Revenue: $4K+
Minimum Credit Score: 580
236 businessesvisited this site today
21,556Reviews
2
9.1
ExcellentBestMoneyscore
Popularity
Based on visits in the past 7 days
9.0
Brand Reputation
Based on web trends
9.4
Biz2Credit
Funding Amount: $50K-$2M
Time in business: 12+ months
Monthly Revenue: $10K+
Minimum Credit Score: 650
SBA loans provided by partner banks
15,367Reviews
3
8.9
GreatBestMoneyscore
Popularity
Based on visits in the past 7 days
8.7
Brand Reputation
Based on web trends
9.4
OnDeck
Loan Amount: $5K-$250K
Time in business: 1+ years
Monthly Revenue: $8.5K+
Minimum Credit Score: 625
4,790Reviews
4
8.8
GreatBestMoneyscore
Popularity
Based on visits in the past 7 days
8.6
Brand Reputation
Based on web trends
9.3
Fundera
Loan Amount: $5K-$5M
Time in business: 1+ years
Monthly Revenue: $10K+
Minimum Credit Score: 580
986Reviews
5
9.3
ExcellentBestMoneyscore
Popularity
Based on visits in the past 7 days
8.8
Brand Reputation
Based on web trends
10.0
SoFi Business Loans Marketplace
Funding Amount: $5K-$2M
Time in Business: 12+ months
Monthly Revenue: $10K+
Minimum Credit Score: 680
9,700Reviews
6
8.6
GreatBestMoneyscore
Popularity
Based on visits in the past 7 days
8.4
Brand Reputation
Based on web trends
8.6
Lendzi
Loan Amount: $10K-$5M
Time In Business: 18+ months
Monthly Revenue: At least $12K
Minimum Credit Score: 600
1,317Reviews
11,637 visitors
connected with a lender in the past week
BestMoney Total Score
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Most Popular on BestMoney
9.6
BestMoneyscore
Popularity
Based on visits in the past 7 days
10.0
Brand Reputation
Based on web trends
9.5
Lendio
Loan Amount: $5K-$2M
Long-term financing available
Time in business: No minimum
Monthly Revenue: $4K+
Minimum Credit Score: 580
236 businessesvisited this site today
What is an SBA Loan?
SBA loans are loans issued by private lenders and backed by the U.S Federal Government’s Small Business Administration (SBA). These fixed-rate loans are designed to make it easier for small businesses and entrepreneurs to get financing.
More than 800 lenders, community development organizations, and micro-lending institutions are authorized to issue SBA loans. Under the SBA’s 7(a) loan guaranty program, the lender provides the loan and the SBA promises to pay the lender a portion of the loan if the borrower defaults.
Having government backing allows lenders to take on more risks when it comes to providing loans to small businesses. According to the U.S. Small Business Administration, in the 2024 fiscal year, lenders issued a combined $56 billion in SBA loans.
How to Choose the Best SBA loan
For many businesses, an SBA loan is a way to get a lower interest rate than a regular business loan.
There are 2 reasons for this:
First, the government caps fixed-rate SBA loans at a certain level.
Second, lenders are willing to take more risks when they know the government is there to bail them out.
Having said that, interest rates can still vary from lender to lender. Therefore, the first thing to look for when comparing SBA lenders is interest rate and small business loan APR. In addition, we recommend comparing lenders by reputation, level of customer support, and ease of application process.
Which SBA Financing Is Right For Your Business?
SBA 7(a)
The standard SBA 7(a) is the most common, and most versatile SBA loan. With a loan amount of up to $5 million and the widest range of uses, it can benefit any business that’s eligible. That said, it’s an especially attractive option for startups due to the combination of large capital and flexibility.
SBA 504
If you can pinpoint your needs specifically on new machinery or facilities, however, the SBA 504 loan is your best bet. It’s similar to the standard 7(a), with loans of up to $5 million and extended repayment terms, but it’s designed specifically for large, stationary spending. Look into the 504 if your business is in need of new land, new facilities, or expanded operations.
SBA Express loans
SBA Express loans, meanwhile, get you money quicker, but less of it. The Express loan drastically reduces the time it takes to receive financing (approval typically comes within 36 hours), making it ideal for those looking for quick turnaround. It’s best if you’re an established business with specific, time-sensitive needs, since eligibility is more difficult and new businesses might not be approved. The loan amounts cap out at $500,000, but because of their speed they’re ideal if you’re eligible and require less capital for an urgent or niche need.
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What Will an SBA Loan Cost You?
SBA fees and SBA loan rates vary by the type and amount of loan you take out, as well as market interest rates that fluctuate. The SBA rates for standard 7(a) loans range from 10.75%-15.75%. Repayment terms depend on what you use the loan for—if you use the capital to purchase new equipment, repayment terms are up to 10 years, whereas loans for real estate have repayment terms up to 25 years.
What is an SBA Loan Guarantee?
A loan guarantee is the amount the federal government has agreed to pay on the loan. It can be as high as $3.75 million, and it guarantees that in the event of deferral, the lender will still receive that amount from the government. Loan guarantees are what give private lenders the confidence to offer SBAs with lower payments and more flexible terms.
How Long Does it Take to Get an SBA Loan?
SBA loans typically take 60-90 days from application to receival of funds. Of course this depends on the loan type, the eligibility of the applicant, as well as other factors unique to each business. Those that require quicker access to finances can apply for an express SBA loan, which reduces approval time to 36 hours, and delivers money to the borrower’s bank account in a matter of weeks.
What are the SBA Loan Requirements?
The Small Business Administration sets rules and guidelines that lenders must follow when issuing SBA loans. To qualify for an SBA loan, a business must be a for-profit business located in the United States or its territories. The business owner must have invested their own time and money in the business and must have exhausted all other financing options. In addition to standard 7(a) loans, some lenders offer 2 other types of loans, subject to different requirements. These are 7(a) small loans, up to $150,000; and SBA Express, up to $500,000, with a turnaround time of no more than 36 hours.
Business owners should be aware of these SBA 7(a) eligibility requirements:
Maximum loan amount is $5 million.
Minimum credit score is usually 680, although some lenders have been found to accept credit scores as low as 620.
Collateral generally isn’t a requirement of loans worth $25,000 or less. Loans of $25,000 to $350,000 always involve some collateral. For loans exceeding $350,000 the SBA requires lenders to “collateralize the loan to the maximum extent possible up to the loan amount.”
Businesses involved in certain industries, such as gambling, medical research, and marijuana, are ineligible—even if their activities are legal in the state where they are located.
Applying for an SBA loan typically involves a lengthier application process than for a regular business loan. The following is a list of thing lenders may take into consideration:
Personal background, including criminal record. Anyone owning more than 20% or more of the business must fill out a form with their personal information and sign a personal guarantee.
Business background. Members of the company management team should be prepared to provide a resume outlining their business and work experience.
Business plan. This should include a value proposition, financial statements and projections, details of any existing debts, and a clear outline of how the SBA loan funds will be used.
Personal and business financial statements, tax returns, and bank statements.
Business credit report. As with a personal credit report, the lender will need you to provide details so it can access this report.
Current SBA Loan Rates 2025
| Type of SBA Loan | Loan Amount | Repayment Term | SBA Loan Rate |
| SBA 7(a) Loan | Under $25,000 | Over 7 years | Prime rate + 4.75% |
| SBA 7(a) Loan | Between $25,000 and $50,000 | Over 7 years | Prime rate + 3.75% |
| SBA 7(a) Loan | Over $50,000 | Over 7 years | Prime rate + 2.75% |
| SBA 7(a) Loan | Under $25,000 | Under 7 years | Prime rate + 4.25% |
| SBA 7(a) Loan | Between $25,000 and $50,000 | Under 7 years | Prime rate + 3.25% |
| SBA 7(a) Loan | Over $50,000 | Under 7 years | Prime rate + 2.25% |
| SBA Express Loan | Up to $350,000 | Up to 7 years | Prime rate + 4.5% to 6.5% |
| SBA 504/CDC Loan (CDC portion) | Up to $5.5 million | 10 years | 2.231% |
| SBA 504/CDC Loan (CDC portion) | Up to $5.5 million | 20 or 25 years | 2.364% - 2.399% |
| SBA Microloan | Less than or equal to $10,000 | Up to 6 years | Cost of funds + 8.50% |
| SBA Microloan | Over $10,000 | Up to 6 years | Cost of funds + 7.75% |
Rates from Fundera 2023
Why Use an SBA Loan?
SBA loans are designed to make it easier for small businesses to get funding. If your business has exhausted all other financing options, you may be able to get an SBA loan. What’s more, the government caps the SBA loan rate, meaning you’ll never have to pay the high interest rates and small business loan APR often associated with other types of business loans.
Max interest rates are pegged to a base rate, using the prime rate, LIBOR rate, or an optional peg rate—but usually the prime rate published by the Wall Street Journal. In general, the prime rate is 300 points above the federal funds rate.
This table shows the maximum loan amounts:
| Loan Amount | Max Rate (< 7 years) | Max Rate (> 7 years) |
|---|---|---|
| $25,000 or less | Base rate plus 4.25% | Base rate plus 4.75% |
| $25,000 to $50,000 | Base rate plus 3.25% | Base rate plus 3.75% |
| $50,000 or more | Base rate plus 2.2% | Base rate plus 2.75% |
SBA loans can be used for the following purposes:
Purchase land
Cover construction costs
Purchase or expand an existing business
Refinance existing debt
Purchase machinery, furniture, supplies, or materials
Alternatives to SBA Loans
Small business owners may only apply for an SBA loan after exhausting all other options. Here are a few loan types to think about first.
- Business line of credit: Arrangement whereby a lender agrees to supply credit to a business owner.
- Business term loan: These include secured and unsecured business loans. Unsecured loans typically come with lower APRs, but require the business owner to have very good credit.
- Business credit card: Some credit cards offer a no-interest introductory period, making them suitable for covering small starting expenses without accumulating debt.
- Invoice factoring: This is a type of advance on your outstanding invoices, where the lender effectively purchases your business’s accounts receivable.
- Merchant cash advance: These involve borrowing a lump sum and repaying it by withholding a percentage of daily, weekly or monthly sales.
Disclaimers
Upstart:
* Small business loan amounts range from $5,000 - $200,000. Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Small business loans not available in NV, NH, MD, WV, IA.
When you check your rate, we check your credit report. This initial (soft) inquiry will not affect your credit score. If you accept your rate and proceed with your application, we do another (hard) credit inquiry that will impact your credit score. If you take out a loan, repayment information may be reported to the credit bureaus.