How Do You Get an SBA Small Business Loan?

Getting stable funding is a big step for small business owners and entrepreneurs. Whether you are starting a new business or expanding an existing one, having the right funds could mean the difference between reaching your goals or facing financial setbacks. Luckily, SBA loans give business owners an affordable and accessible way to fund their business needs. Keep reading to learn everything you need to know about securing an SBA loan—from meeting eligibility requirements to finding the best business lender for your needs!

What are SBA Loans?

SBA loans are business loans guaranteed by the U.S. Small Business Administration (SBA). They offer a reliable financing option for small businesses that may have limited funding opportunities elsewhere.

Unlike traditional small business loans, SBA loans are partially backed by the government. This makes them less risky for lenders to approve since they have a built-in safety net. As a result, banks can offer better interest rates and repayment terms to small business owners.

Key benefits of SBA Loans:

• Competitive small business loan interest rates
• Longer repayment terms—up to 25 years in some cases
• Lower down payment requirements
• Financing available for a variety of business needs, from purchasing equipment to hiring staff

How Do You Get an SBA Loan?

Before you apply for an SBA loan, it’s important to understand what lenders are looking for and how to help your chances of approval. Here’s what you need to do:

1. Learn If You Are Eligible for an SBA Loan

Before applying, check that you meet these basic standards to qualify for an SBA loan for small business:

• For-Profit Business: Your business must generate profit and be located in the United States.
• Size Requirements: Your business must meet SBA's size standards, which vary by industry. Generally speaking, small businesses with fewer than 500 employees or under $7.5 million in annual revenue may qualify.
• Equity Investment: You must have some personal financial stake in your business.
• Limited Access to Other Credit: SBA loans are designed for borrowers who cannot access credit on reasonable terms from other sources.

• Creditworthiness: A good credit score and a strong financial history to show your ability to repay the loan. (Learn how to build business credit here).

If your business checks these boxes, you are off to a great start!

2. Choose the Right SBA Loan Program

SBA small business loans aren’t one-size-fits-all. Luckily, the Small Business Administration offers different loan programs to cater to a wide range of needs. Here are the main ones to consider:

• SBA 7(a) Loan Program: This is the most popular SBA loan program, and it offers flexible funding for working capital, equipment, real estate, and more—up to $5 million.

• SBA Express Loan Program: A faster option for businesses that need quick funding, providing up to $500,000 with a simple approval process.

• SBA 504 Loan Program: A great choice for buying land, equipment, buildings, or even funding new construction. These loans are split between a private lender (50%), a Certified Development Company (40%), and the borrower (10%)—though this breakdown can vary.
• SBA Microloan Program: Includes smaller loans up to $50,000 and is designed to help startups and small businesses with inventory, equipment, or working capital.

• SBA Disaster Loan Program: These low-interest loans help businesses recover from natural disasters, covering repairs, inventory, and operating expenses.

3. Find the Best SBA-Approved Lender

To get an SBA loan for small business, you need to work with an SBA-approved lender. It’s important to compare interest rates, repayment terms, and fees across various lenders to find the best fit. You might also want to explore family-owned or local banks in your area—they often have personalized support designed for small businesses.

To connect with participating business lenders nearby, we recommend using online tools like SBA Lender Match.

4. Prepare Required Documents

Having your documents ready will simplify the SBA application process. Commonly required documents include:

• Program-Specific Forms & Applications: These are the documents required based on the chosen SBA loan program.
• Business License & Registrations: Proof of business legitimacy, including permits and certifications.
• Organizational Documents: Articles of incorporation, bylaws, operating agreements (for LLCs), and other legal documents verifying the business structure.
• Financial Statements: Includes balance sheets, cash flow statements, debt schedules, and year-to-date (YTD) profit and loss statements.
• Tax Returns: Personal and business tax filings from the past 2-3 years.
• Business Plan: A detailed outline with 2-year projections (first year broken down by month, second year presented as an annual estimate).
• Personal Resumes: Background and experience of business owners and key management members.

5. Complete & Submit Your Loan Application

Now it’s go time! Fill out the SBA loan application provided by your business lender, attach the required documents, and submit everything. Stay in touch with your lender throughout the review process. They might ask follow-up questions or provide additional details along the way.

If you are approved, take a close look at the loan agreement and make sure you understand the repayment terms before signing.

6. Use Business Funds Wisely

Congratulations on securing your SBA small business loan! Now it’s time to stay responsible with your funding. Spend the money where it’s needed—whether that’s buying equipment, hiring staff, or growing your business operations. Don’t forget to make your payments on time so your credit remains strong. By staying on top of your finances, you can make the most of your loan and turn it into a smart investment.

SBA Small Business Loans from Academy Bank

An SBA loan for small business is more than just access to funding—it’s a chance to build your company with confidence. The process can feel overwhelming, but with the right guidance, approval is definitely within reach.

Academy Bank is a proud SBA-approved lender and one of the best banks for small businesses. As a family-owned, full-service business bank, we understand the needs of entrepreneurs and small business owners.

At Academy Bank, we make business lending easier with SBA 7(a) Loans, SBA 504 Loans, and SBA Express Loans (some of the most popular SBA loans available). Our competitive loan rates and personalized guidance make us a trusted partner for businesses looking to grow. So whether you are expanding your small business, upgrading equipment, or need extra cash to keep things running smoothly, our team is here to help!

Ready to take your business to the next level? Learn more about our SBA loans on Academy Bank’s website and send us your questions at SBALoansAB@academybank.com.