The SBA doesn’t lend money directly — it guarantees a portion of loans made by approved private lenders, so you apply through a bank, credit union or other SBA-approved institution.
The process takes longer than a typical business loan — standard 7(a) loans take at least a few weeks, though SBA Express can move in as little as 36 hours.
As of 2026, two key rules changed: the SBSS credit score requirement for small loans (≤$350,000) has been eliminated, and all beneficial owners must now be U.S. Citizens, Nationals or Lawful Permanent Residents.
The SBA 7(a) loan is the U.S. Small Business Administration’s primary small business lending program. The SBA doesn’t lend money directly — it guarantees a portion of loans made by approved private lenders, reducing their risk and making it easier for small businesses to access capital they might not otherwise qualify for. Proceeds can be used for almost any business purpose: real estate, working capital, equipment, furniture and fixtures, refinancing existing debt and changes of ownership.
The maximum loan amount is $5 million for standard 7(a) loans; SBA Express and Export Express loans are capped at $500,000. The application process is more involved than a typical bank loan — expect at least a few weeks for standard loans, though SBA Express can move in as little as 36 hours. The four steps below apply to all standard SBA 7(a) loan applications.
Must read: What changed in 2026
Jan. 16, 2026: SBSS credit score requirement eliminated for 7(a) Small loans (≤$350,000) — lenders now apply their own underwriting criteria.
March 1, 2026: All beneficial owners must be U.S. Citizens, U.S. Nationals, or Lawful Permanent Residents. Any non-qualifying interest disqualifies the business.
Oct. 1, 2025–Sept. 30, 2026: Upfront guaranty fees restored to statutory maximums for most loans. Manufacturing fee waivers (0% upfront on loans ≤$950K) for eligible NAICS 31–33 businesses.
Step 1: Find an SBA 7(a) lender
You apply for an SBA 7(a) loan through an SBA-approved private lender — a bank, credit union, or other financial institution authorized by the SBA — not through the SBA itself.
Compare SBA loans
The Small Business Administration (SBA) loan program is one of the most popular types of business financing — and for good reason. Thanks to government backing, it offers some of the lowest rates. But, the long application and strict eligibility requirements make them difficult to get.
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The SBA offers a free online tool called Lender Match at sba.gov/lendermatch that connects borrowers with participating SBA lenders. Answer a few questions about your business and the SBA sends you a curated list of interested lenders within two business days. More than 800 lenders participate across all 50 states and U.S. territories. The tool is free and doesn’t require registration.
Consider starting with your existing bank
Lenders who already have a banking relationship with your business already have access to your financial records, which can speed up the application process and may improve your chances of approval if you are in good standing.
Small loans ($350,000 or less): SBSS score sunsetted in 2026
As of January 16, 2026, the SBA Small Business Scoring Service (SBSS) score requirement for 7(a) Small loans has been eliminated. Previously, the SBA used SBSS scores as a standardized underwriting floor for loans of $350,000 or less. Now, lenders use their own internal underwriting criteria and credit models for this loan category.
In practice, this means approval standards for small 7(a) loans vary more noticeably from lender to lender than they did before. If one preferred lender declines your application, another may approve it based on different internal criteria. Shopping multiple SBA preferred lenders is especially advisable for loans in this size range.
Look for an SBA preferred lender
SBA preferred lenders participate in the Preferred Lender Program (PLP) and have delegated authority to approve SBA loans without first sending the application to the SBA for review. This can significantly shorten turnaround times. Non-PLP lenders must wait for the SBA to review the application after underwriting, which takes 5 to 10 business days for most standard 7(a) loans.
Know the loan type you need
The SBA offers several types of 7(a) loans. The right one depends on your loan size and purpose, and the lender you choose may have an effect on how much you can borrow with your business loan.
Loan type
Max amount
SBA guarantee
SBA turnaround
Standard 7(a)
$5 million
Up to 75%
5–10 business days
7(a) Small
$350,000
Up to 85% (loans ≤$150K) / 75% (loans >$150K)
2–10 business days
SBA Express
$500,000
50%
Lender decides
Export Express
$500,000
90% (loans ≤$350K) / 75% (loans >$350K)
Lender decides
Export Working Capital (EWCP)
$5 million
90%
Varies
International Trade
$5 million
90%
5–10 business days
MARC (manufacturers only)
$5 million
Up to 85% / 75%
Lender decides
Upfront guaranty fees
The loan type you choose also affects what you’ll pay in SBA guaranty fees. Here’s the current fee schedule to factor into your cost of borrowing.
Guaranteed portion of loan
Standard upfront fee
$150,000 or less
2% of guaranteed amount
$150,001–$700,000
3% of guaranteed amount
$700,001–$1 million
3.5% on first $1M of guaranteed amount
Above $1 million
+3.75% on guaranteed amount above $1M
Exceptions: Small manufacturers (NAICS 31–33) pay 0% upfront on loans up to $950,000 through September 30, 2026; veteran-owned businesses pay $0 on SBA Express loans.
Step 2: Gather your documents and complete the required forms
Before you meet with a lender, gather the financial records and completed forms you need to submit with your application. The specific documents required can vary by lender and loan size, but the following are standard for most SBA 7(a) loans.
Key SBA forms
SBA Form 1919 — Borrower Information Form. Required for every SBA 7(a) loan. Completed by the small business applicant and submitted to the participating lender. Collects information about the business, its owners, the loan request, existing debt and prior government financing. Also facilitates a background check. Each co-applicant (such as an Eligible Passive Company and Operating Company) must submit a separate Form 1919. Note: The form must be dated within 90 days of submission, so do not complete it too far in advance.
SBA Form 413 — Personal Financial Statement. One required for each owner and cosigner.
SBA Form 159 — Fee Disclosure Form. Required only if a third party (agent or packager) assists with your application.
SBA Form 912 — Statement of Personal History. May be required if an owner has faced criminal proceedings.
As of March 1, 2026, SBA financing requires that all beneficial owners of the applicant business be U.S. Citizens, U.S. Nationals, or Lawful Permanent Residents (LPR). Lawful Permanent Resident status is verified by the lender per SBA Loan Program Requirements. This requirement is now captured in an addendum to SBA Form 1919 and applies to both 7(a) and 504 loans. Businesses with any non-qualifying ownership interest are currently ineligible for SBA financing regardless of the ownership percentage.
SBA 7(a) loan document checklist
While lenders may have specific requirements, a standard SBA 7(a) application typically requires:
Profit and loss (P&L) statement current within 180 days of the application
Supplementary P&L schedules for the past three years
One-year financial projections with a written explanation
Business certificates or licenses
Records of any past business loan applications
Three years of business tax returns
Three years of personal tax returns for each owner
Resumes for each business owner and cosigner
Business leases for any real estate your business rents
Step 3: Submit the application and wait for review
Submit through your lender
You submit the completed application package to your lender, not directly to the SBA. The contents of the application and the processing method vary depending on the loan size and the lender’s authorization level. Your lender guides you through what it requires.
The application itself typically covers:
An overview and history of your business
A breakdown of all owners and affiliates
Details on other government-issued or federally-backed debt
A specific explanation of why your business needs the loan and how proceeds will be used
A plan for repayment
Review and sign the letter of intent (LOI)
If your lender determines your application qualifies, they will issue a letter of intent (LOI) outlining the potential loan amount, interest rate and repayment terms your business is eligible for. Signing and returning it promptly allows your lender to move forward with underwriting.
Wait for underwriting
Underwriting can take two to three weeks for standard 7(a) loans. During this time you may be asked for additional documents or clarification. Once underwriting is complete, you’ll receive a commitment letter with final loan terms.
Step 4: Sign the commitment letter and close the loan
If underwriting is approved, you’ll receive a commitment letter with final loan terms. After you accept the terms, the lender finalizes the loan agreement. You’ll review and sign the agreement, pay any applicable closing fees and the SBA guaranty fee (unless waived, as with eligible manufacturers in FY2026), and then receive your funds.
Closing timelines vary. Loans that require third-party appraisals, such as real estate loans, take longer to close than working capital loans.
Interest rates are negotiated between borrower and lender but cannot exceed SBA maximums, which are pegged to the prime rate. The maximum variable rate for loans over $350,000 is the base rate plus 3.0%. For loans of $50,000 or less, the maximum is the base rate plus 6.5%. Rates may be fixed or variable.
WATCH: 4 tips to boost your chances of approval
3:48
Eligibility requirements for SBA 7(a) loans
To qualify for an SBA 7(a) loan, a business must, per SBA guidelines:
Be an operating, for-profit business
Be located in the United States
Meet SBA small business size standards
Not be a type of business the SBA deems ineligible
Be unable to obtain the desired credit on reasonable terms from non-government sources
Be creditworthy and demonstrate a reasonable ability to repay the loan
The SBA itself does not set a minimum credit score — individual lenders set their own additional requirements. Most lenders prefer strong personal credit, at least two years of business operation, and adequate collateral, though standards vary.
How to apply for an SBA 7(a) real estate loan
The 7(a) loan can be used to acquire, refinance, or improve commercial real estate with terms up to 25 years. Your business must plan to occupy at least 51% of the property. The steps are the same as any 7(a) loan — just budget extra time for appraisals and environmental reviews.
Find a lender. Use SBA Lender Match or your existing bank. Prioritize an SBA Preferred Lender (PLP) to skip the extra 5–10 business day SBA review.
Gather documents. Everything in the standard 7(a) checklist, plus: purchase agreement, property appraisal, Phase I environmental study, rent rolls, existing tenant leases, construction plans if applicable and a property condition report. Order the appraisal and environmental study first — they take the longest.
Submit and wait for underwriting. Expect a longer timeline than the standard two to three weeks — third-party reviews have to clear before underwriting can close.
Close the loan. Sign, pay closing costs and the SBA guaranty fee, and receive funds. Note: loans with 15+ year maturities carry prepayment penalties if you pay down 25% or more in the first three years (5% / 3% / 1% by year).
Also consider the SBA 504 loan for purchasing or constructing a major facility — long-term fixed-rate financing up to $5.5 million through Certified Development Companies, with separate eligibility requirements.
How to apply for an SBA startup loan
There’s no dedicated SBA startup loan — new businesses apply through the same 7(a) programs as established ones. The difference is that lenders lean harder on your business plan, require stronger collateral and expect a larger equity contribution since there’s no operating history to underwrite against.
Find a lender. Use SBA Lender Match and ask prospective lenders upfront about their appetite for startups — not all SBA lenders work with new businesses.
Prepare a strong business plan. This is required for startup funding and is the centerpiece of your application. It needs to show market understanding, a realistic revenue path, and a clear repayment strategy. Prior industry experience isn’t a formal SBA requirement, but it carries significant weight with underwriters.
Gather documents. Everything in the standard 7(a) checklist, plus financial projections, evidence of industry experience (resumes, licenses), and documentation of any personal assets offered as collateral.
Submit and wait for underwriting. Same process as any 7(a) loan — expect more follow-up questions on projections and repayment capacity.
If your capital need is smaller, two other SBA programs may be a better fit:
SBA Microloans. Up to $50,000 through nonprofit intermediary lenders; average loan is ~$13,000. Usable for working capital, inventory, supplies, furniture, fixtures, machinery, and equipment — not for existing debt or real estate. Maximum term is seven years; rates generally run 8%–13%. Apply directly through an SBA-approved intermediary.
Community Advantage (CA) SBLC loans. Up to $350,000 through community-based lenders. As of May 2025, the SBA placed a moratorium on new CA lenders and overhauled the program’s standards. It remains operational through existing licensed lenders, but availability is reduced — check with your local SBA District Office before counting on this option.
Common reasons SBA loans are rejected
Poor credit history. Lenders prefer applicants with strong personal credit. A past bankruptcy may not disqualify you if there is a sound explanation and recovery.
Criminal history. Active criminal proceedings, current parole status, or recent felony convictions can disqualify an applicant.
Federal loan defaults. Defaulting on a student loan or any other federal debt is disqualifying.
Excessive existing assets. The SBA requires businesses to demonstrate they have genuinely sought private financing and tapped into some of their own resources before turning to an SBA loan.
Citizenship/residency. As of March 1, 2026, all beneficial owners must be U.S. Citizens, U.S. Nationals, or Lawful Permanent Residents. Any non-qualifying ownership interest, regardless of percentage, currently disqualifies the business from SBA financing.
Bottom line
The SBA 7(a) application is more complex than your typical bank or credit union business loan. But the low interest rates and fees may be worth it for small businesses that need funds to grow. Read about our picks for the best SBA lenders to get started or compare more business loans.
Anna Serio was a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY.
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Megan B. Shepherd is a personal finance expert and editor for loans and insurance at Finder.
Her personal finance expertise has been featured on Forbes, Nasdaq, MediaFeed, Fox News, Time, Reviews.com, and carinsurance.com, adding invaluable information related to personal loans, financial strategies and smart borrowing tactics.
Megan graduated from the University of Texas at Dallas with a BS in Business Administration with an entrepreneurial focus. She's worked as a certified financial adviser and has earned certificates of completion from A.D. Banker & Company.
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