SBA loans for small businesses
An SBA loan is made by a lender and partly guaranteed by the U.S. Small Business Administration, usually with longer terms.6
7% to 18.99%
Rates lenders in our network quote for SBA loans, as of September 2026.1
They suit established businesses making a long-term investment, such as equipment, real estate or an expansion, that can handle a thorough application: expect more documents and a longer process than most other options.
Last updated
How an SBA loan works
A lender that makes SBA loans, such as a bank or credit union, reviews your application. In the SBA's main business loan programs, such as 7(a), the SBA doesn't lend the money itself.
The lender checks your business against its own standards and the SBA's program rules, which cover who can borrow, what the money can be used for, and how much. Expect to provide more documents than for most other financing.
If the lender approves, the SBA guarantees part of the loan. The guarantee protects the lender, not you: you owe the full amount.
You receive the funds and repay the lender in regular installments over the term. Many SBA loans ask the main owners to guarantee them personally.
The SBA sets and updates the program rules, including who is eligible, what the money can be used for, and loan limits. For the current rules, see sba.gov.
When it fits, and when it doesn't
Where it fits
- You're making a long-term investment, such as equipment, real estate, an acquisition or an expansion.
- A longer repayment schedule would help, and you can wait while the loan is arranged.
- Your records are in order: tax returns, financial statements and a clear plan for the money.
- You want to refinance existing business debt onto a longer schedule, where the program's rules allow it.
Reasons to think twice
- You need the money soon. SBA applications usually ask for more documents and take longer than other options.
- You'd rather not give a personal guarantee or pledge collateral, which SBA loans often require.
- The program's rules don't allow what you want the money for. Ask the lender, or check sba.gov.
- Your need is short-term or comes and goes. A line of credit may fit better.
What lenders usually look at
- How long your business has been operating, and its track record
- Revenue and cash flow, and whether the business's own earnings can repay the loan
- Credit history of the business and its owners
- Collateral and personal guarantees
- Whether the business and the use of the money meet the SBA's program rules
What they weigh, and how much, differs from one to the next and by product. No single number decides it.
Documents you may be asked for
- Business and personal tax returns
- Profit and loss statements and balance sheets, including a recent year-to-date statement
- A personal financial statement for each owner who guarantees the loan
- A list of your current business debts
- A business plan or a written explanation of how you will use the money, for some loans
- Business licenses, leases or ownership documents, depending on the loan
Each lender or funder tells you what it needs for your application, and you can upload documents in your 37Lend account.
Also called
- SBA-backed loan
- SBA-guaranteed loan
- SBA 7(a) loan
- SBA 504 loan
- Small Business Administration loan
Compare with
Term loan
A term loan is a lump sum you repay in fixed installments over a set term, for a one-time cost with a clear payback.
Equipment financing
Equipment financing pays for vehicles, machinery or other hard assets, and the equipment itself secures what you borrow.
Line of credit
A business line of credit lets you draw funds as you need them, up to a limit, and pay interest only on what you use.
SBA loan questions
What are SBA loan rates?
Lenders in our network quote SBA loans at 7% to 18.99%, as of September 2026. That is the range quoted in our network, not an APR and not an offer. The rate you're offered depends on your credit profile, revenue and time in business, and on the lender that takes your application. Fees can add to the cost, so compare offers by total cost, not just the rate.
How is an SBA loan different from a bank loan?
Many SBA loans are bank loans: a bank or other lender makes the loan, and the U.S. Small Business Administration guarantees part of it. The guarantee lowers the lender's risk, which can make longer repayment schedules possible. In return the loan must follow the SBA's program rules, and the application usually asks for more documents and takes longer than a conventional bank loan.
Does the SBA lend me the money?
Not in its main business loan programs. A lender such as a bank or credit union makes the loan, the SBA guarantees part of it, and you repay the lender.
How long does an SBA loan take?
Usually longer than other kinds of business financing, because there are more documents to gather and program rules to meet. How long depends on the lender, the loan program and how soon you can provide what the lender asks for. If you need the money sooner, compare other options such as a term loan or a line of credit.
Can I get an SBA loan with bad credit?
It can be harder than with some other options. Lenders review the credit history of the business and its owners, along with cash flow, collateral and time in business, and each lender applies its own standards on top of the SBA's rules. No single score decides it. Checking your options with 37Lend uses a soft credit inquiry, which doesn't affect your credit score.
How much can I borrow with an SBA loan?
The SBA sets a maximum for each program and updates its rules from time to time, so check sba.gov for the current limits. Within them, what a lender offers depends on your business's cash flow, credit and collateral, and on what the money is for.
Want to talk it through first? Book a call with a funding advisor.