What SBA Loans Are Still Available Up to $5 Million?
The U.S. Small Business Administration (SBA) offers various loan programs to support small businesses across the United States. Businesses that have a solid purpose and are able to repay can meet the SBA standards. Small business owners might think what SBA loans are still available?
As of January 2025, several SBA loans are available to assist business owners in securing financing for diverse business purposes.
This guide provides an overview of the current SBA loan options, their features, and how to apply for them.
5 SBA Loans for Small Businesses
1. SBA 7(a) Loan Program
The 7(a) Loan Program is the SBA’s primary program for providing financial assistance to small businesses. It offers loans up to $5 million for various business needs, including working capital, purchasing equipment, and acquiring real estate. Interest rates are typically variable and are negotiated between the lender and borrower, subject to SBA maximums. As of January 2025, the SBA Fixed Base Rate is 9.25%.
Key Features:
Loan Amount: Up to $5 million.
Interest Rates: Variable rates negotiated with lenders, not exceeding SBA maximums.
Repayment Terms: Up to 25 years for real estate; up to 10 years for equipment; generally up to 7 years for working capital.
Fees: For Fiscal Year 2025, the SBA has announced no upfront fees for loans of $1 million or less under the 7(a) Working Capital Pilot (WCP) program.
2. SBA 504 Loan Program
The 504 Loan Program provides long-term, fixed-rate financing for major fixed assets, such as land, buildings, and equipment. These loans are intended to promote business growth and job creation.
Key Features:
Loan Amount: Typically up to $5 million; certain projects may qualify for up to $5.5 million.
Interest Rates: Fixed rates determined at the time of loan approval. As of January 2025, the 504 Note Rate for 20 and 25 years is 2.96978%.
Repayment Terms: 10, 20, or 25 years.
Fees: Fees are typically around 3% of the loan amount and can be financed with the loan.
3. SBA Disaster Loan Program
The Disaster Loan Program offers financial assistance to businesses, nonprofit organizations, homeowners, and renters affected by declared disasters. Following the American Relief Act of 2025, signed into law on December 21, 2024, the program’s funding has been replenished to support those impacted by recent disasters.
Key Features:
Loan Amount: Up to $2 million for businesses to repair or replace damaged property and assets.
Interest Rates: As low as 4% for small businesses and 3.25% for private nonprofit organizations, with terms up to 30 years.
Repayment Terms: Up to 30 years, based on the applicant’s financial condition.
Deferred Payments: Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement.
4. SBA Microloan Program
The Microloan Program provides small, short-term loans to small businesses and certain types of nonprofit organizations. These loans can be used for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery, and equipment.
Key Features:
Loan Amount: Up to $50,000; the average loan size is about $13,000.
Interest Rates: Generally range from 8% to 13%, depending on the intermediary lender’s cost of funds and the needs of the borrower.
Repayment Terms: Maximum of 6 years.
5. SBA Express Loan Program
If you are wondering What is the easiest SBA loan to get? The Express Loan is the one! This program offers expedited loan procedures for amounts up to $500,000, providing a faster turnaround time for approval.
Key Features:
Loan Amount: Up to $500,000.
Interest Rates: Negotiated between the lender and borrower, not exceeding SBA maximums.
Repayment Terms: Up to 7 years for lines of credit; up to 25 years for real estate.
Approval Time: Within 36 hours.
How to Apply for an SBA Loan
Assess Your Needs: Determine the type of loan that best suits your business purposes, whether it’s for working capital, purchasing equipment, or recovering from a declared disaster.
Prepare Documentation: Gather necessary documents, including your business plan, financial statements, tax returns, and details of collateral.
Find a Lender: Use the SBA’s Lender Match tool to connect with SBA-approved preferred lenders in your area.
Submit Your Application: Complete the loan application process with your chosen lender, providing all required information and documentation.
Await Approval: The lender will review your application and make a decision. For Express Loans, this process is expedited.
Conclusion
As of January 2025, the SBA continues to offer a variety of loan programs to support small businesses in the United States. Whether you need funds for expansion, equipment, working capital, or disaster recovery, there are options available to meet your needs. By understanding the different loan programs and their features, you can make informed decisions to secure the financing necessary for your business’s success.
FAQs About SBA Loan Availability
What is the best SBA score?
The best SBA (Small Business Administration) score typically falls between 140 and 160 or higher. This score indicates a strong likelihood of loan repayment and improves your chances of loan approval. It is part of the SBA’s predictive scoring model for lenders.
What does SBA mean in IMF?
In the context of the International Monetary Fund (IMF), SBA stands for Stand-By Arrangement. It is a financial tool used by the IMF to provide member countries with short-term funding to address balance-of-payments issues.
What is the purpose of an SBA?
An SBA, whether referring to the Small Business Administration or a Stand-By Arrangement, serves to provide financial support:
Small Business Administration (SBA): Helps small businesses access loans and resources to grow and succeed.
Stand-By Arrangement (IMF): Assists countries in stabilizing their economies during financial crises.
Do SBA loans require collateral?
Yes, SBA loans often require collateral to secure the loan. The amount and type of collateral depend on the loan program and the lender’s policies. However, loans under $25,000 typically do not require collateral.
What is the 20% rule for SBA?
The 20% rule for SBA refers to ownership and personal guarantees. Any individual owning 20% or more of a business must provide a personal guarantee for an SBA loan, ensuring accountability for repayment.
