Best SBA Loans of February 2025

Elite Personal Finance
Last Update: November 1, 2024 •

SBA loans are small-business loans guaranteed by the SBA and issued by participating lenders, mostly banks.

SBA loans are the cheapest business loans.

The SBA can guarantee up to 85% of $150,000 or fewer loans and 75% of loans more than $150,000. According to the agency's lending statistics, the average 7(a) loan amount was about $425,500 in 2018. The program’s maximum loan amount is $5 million.

SBA loans are provided but banks or online lenders. On their official site, you can find a matching tool that will help you find the best option for you.

How do I get an SBA loan?

The best place to start is the SBA website, which includes a loan application checklist. Use this to gather your documents, including your tax returns and business records. Here are some of the documents you’ll need before applying:

  • SBA’s borrower information form
  • Statement of personal history
  • Personal financial statement
  • Personal income tax returns (previous three years)
  • Business tax returns (previous three years)
  • Business certificate or license
  • Business lease
  • Loan application history
Loan type What you need to know
7(a) loan program (SBA’s flagship loan program)
  • Federally guaranteed term loans of up to $5 million.
  • Funds for working capital, expansion, equipment purchases.
  • Processed through banks, credit unions, specialized lenders.
504 loan program
  • Federally guaranteed loans of up to $5 million.
  • Funds for buying land, machinery, facilities.
  • Processed through private-sector lenders and nonprofits.
Microloans
  • Loans of up to $50,000.
  • Funds for working capital, inventory, equipment, starting a business.
  • Processed through community-based nonprofits.
SBA disaster loans
  • Loans of up to $2 million.
  • Funds for small-business owners affected by natural disasters and other emergencies.
  • Processed through the SBA.
SBA loan size 7(a) loan paid off in under 7 years * 7(a) loan paid off in over 7 years *
$25,000 or less 9.50% 10.00%
$25,001 to $50,000 8.50% 9.00%
More than $50,000 7.50% 8.00%
*Rates calculated with the current prime rate of 5.25%
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Amount:

$30,000 to $350,000

 Min. Credit Score:

-

 APR:

9.7% to 11.04%

 Approval:

-

 Terms:

10 years
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