Small Business Loan in the US — SBA Loans vs Bank Loans

SBA loans — the gold standard

SBA 7(a) loans are backed by the US Small Business Administration and offer rates below market (currently prime + 2%–4%). Up to $5 million, 10-year term for working capital, 25-year for real estate.

SBA 504 loans are for major fixed assets (equipment, real estate) — up to $5.5 million at below-market fixed rates.

The catch: SBA loans require strong financials and take 30–90 days to close. If you need money fast, consider a line of credit first, then apply for SBA refinancing.