grow your business with a loan that fits your needs
borrow with confidence guaranteed by the SBA
An SBA loan is a government-guaranteed small business loan that has a long-term and low-interest rates. The Small Business Administration (SBA) is the government agency that partially guarantees SBA loans and was founded in 1953 to support small business owners across the United States.
The most common misunderstanding about these loans is that the agency lends money directly to small businesses. However, the agency does not make direct loans. The SBA provides a guarantee on the loan, promising to reimburse the bank for a certain percentage of your loan if you default on that loan. This guarantee lowers the risks to banks and other lenders, encouraging them to offer these loans to more American small businesses. Many banks and other financial institutions offer SBA loans, but their process, requirements and fees can vary.
SBA loans come with different rates depending on the lender you work with; however, the SBA establishes the maximum amount that can be charged for these loans.
- 6.25% to 7.50% (Prime Rate plus 1.50% to 2.75%) for commercial real estate loans $500,000 – $5 million
- 7.50% to 8.50% (Prime Rate plus 2.75% to 3.75%) for loans $30,000 – $350,000
Even after fees, SBA loans are vastly cheaper than the majority of alternative financing and alternative lender options.