SBA Loan Solutions for Every Business Need

An SBA loan is a small business loan partially guaranteed by the U.S. Small Business Administration. The SBA doesn't lend money directly but guarantees up to 85% of the loan, reducing risk for lenders and making it easier for businesses to qualify. This results in lower interest rates, longer repayment terms, and lower down payments compared to conventional loans.

To qualify for an SBA loan, your business must operate for profit in the U.S., meet SBA size standards, have invested equity, exhausted other financing options, and demonstrate ability to repay. Typically, you need a credit score of 650+, at least 2 years in business, and annual revenue sufficient to cover loan payments.

SBA loan approval typically takes 30-90 days depending on the loan type. SBA Express loans can be approved in as little as 36 hours, while SBA 7(a) and 504 loans take 45-90 days. Working with an experienced SBA lender like Halo Business Finance can significantly speed up the process.

SBA 7(a) loans are versatile and can be used for working capital, equipment, or real estate up to $5 million. SBA 504 loans are specifically for major fixed assets like real estate and equipment, offering fixed rates up to $5.5 million with only 10% down payment. 504 loans typically have lower rates but are less flexible in use.

SBA loans can be used for working capital, purchasing equipment or inventory, refinancing existing debt, buying real estate, business acquisition, and expansion. The specific uses depend on the loan program—7(a) loans offer the most flexibility, while 504 loans are restricted to major fixed assets.

SBA 7(a) loan rates are typically Prime + 2.25% to 2.75% for loans over $50,000, with the Prime rate currently around 8.5%. SBA 504 loans offer fixed rates typically between 5-6%. SBA Express loans may have rates up to Prime + 4.5%. Actual rates depend on loan amount, term, and borrower qualifications.

Most SBA lenders look for a personal credit score of 650 or higher, though stronger scores can improve your rate and approval odds. Beyond credit, lenders weigh time in business (typically 2+ years), cash flow, collateral, and your equity injection. Strong business financials can help offset a borderline score.

It can be challenging, but it is possible. SBA Microloans are startup-friendly and offer up to $50,000 with more flexible requirements and technical assistance. For weaker credit, a larger down payment, solid collateral, or a co-signer can strengthen your application. Our specialists help match your profile to the right program.