SBA Loans & Grants Complete Guide
Everything you need to know about Small Business Administration funding. Access loans up to $5M and discover available grant programs.
What is the Small Business Administration (SBA)?
The Small Business Administration is a federal agency that provides support to entrepreneurs and small businesses. The SBA doesn't lend money directly but guarantees loans made by approved lenders, reducing risk and making it easier for small businesses to access capital.
SBA's Mission
- • Support small business growth and job creation
- • Provide access to capital through loan guarantees
- • Offer business counseling and training
- • Help businesses compete for government contracts
Key Benefits
- • Lower down payments (10-15% vs 20-30%)
- • Longer repayment terms
- • Competitive interest rates
- • Flexible use of funds
Major SBA Loan Programs
Most flexible SBA loan program. Can be used for working capital, equipment, real estate, refinancing debt, and business acquisition.
Best For:
- • Working capital needs
- • Equipment purchases
- • Business expansion
- • Debt refinancing
Key Features:
- • No prepayment penalties
- • Competitive rates
- • Various collateral options
- • Personal guarantee required
Long-term, fixed-rate financing for real estate and major equipment purchases. Involves three parties: borrower, bank, and Certified Development Company (CDC).
Structure:
- • 50% from bank (market rate)
- • 40% from CDC (below market rate)
- • 10% borrower down payment
- • Fixed rates on CDC portion
Requirements:
- • Owner-occupied real estate (51%)
- • Job creation or retention
- • Tangible net worth < $15M
- • Average net income < $5M
Small, short-term loans provided through nonprofit community-based organizations. Great for startups and businesses needing smaller amounts.
Advantages:
- • Less paperwork
- • Faster approval
- • Business counseling included
- • Good for credit building
Uses:
- • Working capital
- • Inventory
- • Equipment (not real estate)
- • Business startup costs
SBA Grant Programs
Important Note:
The SBA rarely offers grants directly to businesses. Most "SBA grants" are actually loans. However, the SBA does provide grants to organizations that support small businesses.
Free mentoring and educational workshops from experienced business professionals.
- • Free one-on-one mentoring
- • Business plan review
- • Industry expertise
- • Online and in-person support
Free business counseling and low-cost training at 900+ locations nationwide.
- • Business plan development
- • Financial projections
- • Market research assistance
- • Export/import guidance
Specialized support for women entrepreneurs through training and counseling.
- • Women-focused training programs
- • Access to capital guidance
- • Networking opportunities
- • Government contracting assistance
SBA Loan Eligibility Requirements
✅ Basic Requirements:
- Small Business: Meet SBA size standards for your industry
- For-Profit: Must be a for-profit business
- Good Character: Owners must have good character
- Equity Investment: Owners must invest their own time/money
❌ Ineligible Businesses:
- Financial Businesses: Banks, investment companies
- Passive Investments: Real estate rental or investment
- Prohibited Activities: Gambling, adult entertainment
- Multi-level Marketing: Pyramid schemes, MLM businesses
Ready to Apply for SBA Funding?
Get our comprehensive application guide with loan comparison charts, required documents checklist, and step-by-step application process.
Get SBA Application Guide