SBA Loans
SBA Loans with a Government Guarantee
SBA loans are bank and nonbank loans partly guaranteed by the U.S. Small Business Administration. The guarantee is what lets many companies get larger amounts, longer terms, and better pricing than they would on a conventional C&I loan.
i95 Capital structures and places SBA 7(a) and 504 facilities with participating lenders. 7(a) is the working-capital and general-purpose program. 504 is for major fixed assets: owner-occupied real estate and long-lived equipment. Use of proceeds can include expansion, acquisitions, refinancing, equipment, and real estate. It is not the right tool when the need is next-week cash. Approval is typically slower than factoring or a short-term product.
Flexible Terms to Maximize Your Opportunity
SBA Loan Amount
From $250K to $5M
Repayment Term
Up to 25 years
Rate
SBA maximums apply
7(a) is the general-purpose program, often variable and typically up to $5M. 504 is for owner-occupied real estate and long-lived equipment and uses a long-term fixed piece on the CDC share. Working capital and most equipment amortize closer to 10 years. Real estate can go to 25. Both are placed with participating lenders, not by the SBA itself.
Who Uses SBA Loans
Operating companies that need term capital for expansion, an acquisition, owner-occupied real estate, equipment, or a refinance.
SBA is a fit when the need is planned and the company can live with a longer process in exchange for amount, term, and pricing that a conventional bank loan may not match. It is not the first tool when payroll or invoices have to be funded this week. Factoring or ABL is usually faster for that.
The business must operate in the United States and meet SBA size standards for its industry (NAICS).
Available in all 50 U.S. states.
When It Makes Sense
Use 7(a) when the proceeds are mixed or operating: working capital, acquisition, refinancing eligible business debt, equipment, or a combination of those.
Use 504 when the project is a major fixed asset: buying or building owner-occupied real estate, or long-lived machinery that is part of a growth project. 504 is not a working-capital line.
SBA fits when you can wait weeks, not days, and when cash flow can support a fully amortizing term loan. It is usually the wrong structure for a short AR gap, a revolving borrowing base, or a need that has to fund this week.
Compared with Other Options
A conventional bank term loan can be simpler when the bank already wants the file. SBA is the path when the bank wants a guarantee, more term, or a use of proceeds it will not do on its own paper.
ABL and factoring are faster and revolve against AR or inventory. They are working-capital tools. SBA is term debt.
A short-term working-capital product funds quickly and costs more. Use that when speed is the point. Do not use it to stretch a 10-year need.
An equipment loan or lease can be cleaner when the only collateral is the machine and you do not need SBA’s term or guarantee. SBA is more useful when the project mixes real estate, equipment, and working capital, or when conventional equipment pricing will not clear.
How Lenders Evaluate SBA Loan Requests
Lenders apply their own credit box plus SBA eligibility. They look at cash flow and global debt service, use of proceeds, time in business, owner guarantees (typically owners with 20% or more), and collateral when it exists. Incomplete or inconsistent financials are what slow or kill files.
Personal and business credit matter. There is no single public cutoff we use.
Eligibility rules also apply (U.S. operations, SBA size standards, ownership rules). For the full list and common decline reasons, see SBA Loan Requirements: How to Get Approved.
How it Works
We start with the use of proceeds and whether 7(a) or 504 is the right program. You gather the core package. i95 Capital structures the file and places it with a participating SBA lender. The lender underwrites, orders third-party items if needed, and issues approval. Then the loan closes and funds.
A complete file often takes several weeks, longer on 504 or when an appraisal is required. It is not a same-week product.
SBA Loan FAQs
Is an SBA loan a government check?
No. It is a loan from a participating lender. The SBA guarantees a portion of that loan.
What is the difference between 7(a) and 504?
7(a) is the general-purpose program (working capital, acquisition, refinance, equipment, and some real estate). 504 is for owner-occupied real estate and long-lived equipment.
How long does approval take?
Often several weeks from a complete file. 504 and anything that needs an appraisal take longer.
Do owners have to guarantee the loan?
Usually yes for owners with 20% or more. Waivers are uncommon.
Are SBA payments tax-deductible?
Interest is typically deductible as a business expense. Confirm treatment with your CPA.
Can I use SBA proceeds to pay off an MCA?
Generally no. Outstanding MCA balances also weigh on debt-service coverage. Address that before you apply.
What to Have Ready
A complete SBA file starts with the same core C&I package lenders use to underwrite cash flow and ownership.
- Business tax returns or year-end financials (last 3 years)
- Current interim P&L and balance sheet
- Debt schedule
- Business bank statements (last 3 months)
- Use of proceeds
- Personal tax returns for principals (last 2–3 years)
- Personal financial statement
- Ownership breakdown
- AR and AP agings if the file is operating-company heavy
- Business plan and projections if the lender asks (common on acquisitions and newer companies)
Lenders may add collateral schedules, a lease, entity documents, and an EIN letter. Real estate projects add appraisal and other third-party items later.
How to Get Started with an SBA Loan?
Apply on your own
- Start the application process by completing the SBA Loan Application Short Form.
- The form is short and easy, without commitment, and necessary to start the process quickly. It does not impact your personal credit in any way.
Or, we can assist
- Complete our contact form and select Application Assistance in the Inquiry Type, and a representative will call you promptly. i95 Capital supports you every step of the way.
Either way, we will guide and assist you in preparing your SBA Loan application package. The completed package will then be submitted to one of i95 Capital’s vetted SBA Preferred Lenders for processing.
