What is sba loans?
SBA loans are issued by banks and partially guaranteed by the U.S. Small Business Administration. The guarantee reduces the lender’s risk, which is why SBA loans offer the longest terms and lowest rates in small business lending — typically Prime plus 2.25% to 4.75%, with terms from 10 years for working capital to 25 years for real estate.
The SBA 7(a) program is the most flexible, covering working capital, equipment, acquisitions, and refinancing up to $5 million. SBA 504 loans finance owner-occupied real estate and heavy equipment with as little as 10% down. SBA Express loans provide up to $500,000 with a faster 36-hour SBA turnaround.
The tradeoff is time and documentation. HL Hunt Funding pairs you with SBA Preferred Lenders and manages the document checklist so the process moves as quickly as possible — and we can arrange bridge funding if you need capital before the SBA loan closes.
How sba loans works
- 1Eligibility check
Confirm size standards, credit, and use of funds in a quick pre-qualification.
- 2Document package
We provide a checklist: tax returns, financials, business plan, and debt schedule.
- 3Lender underwriting
An SBA Preferred Lender reviews and approves — 2–4 weeks for Express, 30–90 days for 7(a) and 504.
- 4Close and fund
Sign closing documents and receive funds.
Best for
- Real estate purchases
- Business acquisitions
- Large expansions
- Refinancing expensive debt
Pros and cons
Advantages
- Lowest rates available
- Terms up to 25 years keep payments low
- Up to $5M in funding
- Low down payments
Considerations
- Lengthy approval process
- Extensive documentation
- Personal guarantee and collateral typically required
- 650+ credit usually needed
Requirements to qualify
- 2+ years in business (startups considered for 7(a))
- 650+ FICO
- Profitable or clear path to profitability
- Tax returns and financial statements
Requirements vary by funder. The fastest way to know exactly where you stand is to pre-qualify in two minutes — it is free and there is no credit inquiry.