SBA startup loans
Launch your business with government-backed financing
The most sought-after loan program offers great terms to help new business owners like you invest in the future. Grow stronger and smarter with startup funding from the SBA.
Getting your SBA startup loan is easy through our partners
Getting an SBA loan for your startup business just got a lot easier with SmallBusinessLoans. Our platform matches you with financial partners who offer SBA-backed loans that startups can be approved for including SBA 7(a) loans, Community Advantage loans, and microloans. Enter a bit of information about your new business into our form, and our platform will instantly match your financing needs with trusted partners who specialize in serving them. From there, you can select your preferred option and apply directly with that partner.
Save yourself time and hassle. Click here to skip the research and find the best financing for your situation. Or read below to learn about the SBA loan programs that start-ups can get approved for.
SBA startup loan options
While the SBA does not have a dedicated loan program for startups, new businesses can get approved more easily for three types of SBA loans including the popular SBA 7(a) loan, the Community Advantage loan, and the microloan. While it is possible for a new business to get approved for a 504, this is more difficult. This loan is intended for larger purchases and may require a larger deposit or more collateral, which a new business may not have.
SBA microloan
Loan amount: Up to $50,000
Uses: Working capital, inventory, supplies, equipment, business expenses
Best for: Starting a business
The SBA microloan is designed for smaller amounts of funding with a cap at $50,000, making this type of SBA business loan less risky than a 7(a) loan for the lender. Because the lower amount carries less risk, start-ups may have a better chance of getting approved.
The financing can be used for anything from purchasing supplies or equipment to general working capital expenses needed to start a business. The payback period is up to 8 years, making it easier to spread the expense over time and allowing you to become profitable more easily when compared to a small business loan.
Similar to other SBA loans, you need to get a microloan through an approved third-party lender, like some of the partners in our wide network. Each lender may have its own requirements in addition to the SBA general requirements.
SBA Community Advantage loans
Loan amount: Up to $350,000
Uses: Almost any business expense
Best for: Starting a business
Community Advantage loans target underserved communities, especially businesses that may not qualify for other types of business loans. Community Advantage loans are specifically for mission-focused and community-centered businesses. This SBA loan program does not consider business profits or collateral, which makes it a great option for businesses just starting out, and the payback period can be up to 10 years.
SBA 7(a) loans
Loan amount: Up to $5 million
Uses: Almost any business expense
Best for: Growing a business
The 7(a) loan is the most popular SBA loan program and provides funding for almost any business expenses up to $5 million. Because of its flexibility and fair payback terms, there is an increased demand. In fact, it is one of the most difficult loans for start-ups to get approved for, because they will be competing with established small businesses for the same funding with the latter having a financial track record and collateral. If your start-up gets declined and the two options above are not of interest, the SBA Express loan offers up to $500,000 for smaller projects and may be a good alternative.
The benefits of an SBA loan for startups
The benefits of an SBA loan for startups include:
- Capped interest rates set by the SBA.
- Large loan amounts.
- Flexibility to use your funds in various ways.
- Resource centers and continued entrepreneur support.
The SBA caps the interest rate on the loan, whereas traditional business loans can be affected by market conditions and the individual lender. Additionally, because the SBA takes on some of the risk (they are backing a portion of the loan), the lender may be open to providing a larger loan amount to the borrower.
While there are restrictions on some industries and uses of funding for SBA loans, options like the 7(a) allow for flexible usage compared to other types of financing, like an equipment loan that is dedicated to purchasing or leasing equipment. Not all lenders provide resource centers and entrepreneurial support, but SBA loans come with both, helping you through training and counseling.
How to get an SBA loan for a startup
Applying for an SBA startup loan with our financial partners is an easy five-step process.
Calculate the total costs you need to cover. Add up all of the costs and expenses the funding will be used for including one-time costs like permits and licenses and recurring costs like rent, inventory, and payroll. This will give you a realistic idea of how much money you need to get your business started.
Gather the required documentation. You’ll need a well-thought-out business plan that shows lenders you have a solid understanding of your business and its market. In addition, you’ll want to have any financial documents and legal documents ready if you have them, including business bank account statements, letters of intent from potential customers or clients, and anything else that will show a lender your ability to make payments.
Fill out our form and choose a partner that meets your needs. Click here to get matched with the best financing partners for your unique situation and credit profile. It only takes seconds and it’s completely free.
Apply directly with our partners. This includes submitting your business plan and any supporting documents. You may be required to fill out forms like the SBA 1919, 912, and 413.
Get an approval decision. The SBA startup loan process can take 30 to 90 days. Once you hear back with an approval, you can agree to the terms and funds can be released. If you get declined, you’ll find out why and be able to reapply or try a different type of business loan.
Applying for an SBA loan for your start-up just got easier. Click here and find a partner that meets your needs, instantly.
The application requirements
The SBA loan application process can take anywhere from 30 to 90 days and typically requires a lot of documentation. Here’s a general idea of what you’ll need to apply:
- Business and personal credit score
- Bank and financial statements
- Personal financial statements
- Accounts receivable and accounts payable
