SBA Loans 101: 7(a), 504 and Microloans

The SBA doesn't lend directly; it guarantees a portion of loans made by approved lenders, which lowers their risk and unlocks better terms for you.

SBA 7(a) — the workhorse

Up to $5M for working capital, expansion, equipment, or acquiring a business. Longer terms, lower down payments than conventional loans. Lenders pre-screen with the FICO SBSS score (aim for 160+).

SBA 504 — real estate & major equipment

For owner-occupied commercial real estate and heavy equipment. Structured as a bank loan + a CDC portion, with long fixed terms.

SBA Microloan — up to $50K

Smaller amounts through nonprofit intermediaries, often paired with free mentoring. Great for startups and newer businesses.

Getting approved

Strong personal and business credit, a clear use of funds, and current financials. Get funding-ready first — the SBA path rewards preparation.