Eligible Uses for SBA Funding

Learn what funding from the SBA Loan Program can be used for.

There's a reason the SBA 7(a) loan program is so popular with business owners: the uses for the SBA 7(a) loan are as extensive as they are varied. But it isn’t just the 7(a) loan, the SBA has a variety of loan programs for almost every small business need!

Seriously. Think of any business expense, and there's a good chance the SBA 7(a) loan can cover it. Does your retail store need a serious design makeover? Use the 7(a). Need to replace the intern bookkeeper you brought on in your startup days with a full-time accountant? The SBA loan program has your back. The funding can help you make a real estate purchase, purchase new office furniture, obtain your very first business mortgage, or acquire the money to refinance a bad debt. In short, SBA loans can be used to help you achieve your biggest business goals.

Valid SBA Funding uses:

  • Expansion

  • Renovation

  • Vacant land

  • Building purchases

  • Start-up costs

  • Equipment and fixtures

  • Working capital

  • Inventory

  • Seasonal line of credit

  • Refinancing debt

  • Land Acquisition (SBA 504)

  • Short-term, cyclical, revolving, and non-revolving working capital (SBA CAPLines)

  • Export Expenses (SBA Export Express)

  • Consolidation of short-term debts (SBA CAPLines)

  • Short-term, cyclical, revolving, and non-revolving working capital for export transactions (SBA Export Working Capital Program)

SBA (7)(a) Sample Terms:

  • Loan Size: Can provide up to $5 million of capital for small businesses

  • Loan Term: Have loan terms of up to 10 years for working capital and 25 years for real estate

  • Interest Rates: Most loans currently have interest rates between 5.5% and 8% depending on loan size and maturity

  • Loan Use: Can be used for working capital, equipment, buying a business or franchise, refinancing debt, and purchasing real estate

  • Credit Requirement: Typically require a credit score of around 680

  • Down Payments: Usually require a 10% to 20% down payment, as well as a certain amount of collateral

  • Timing:SBA 7(a) loans can be approved in between 1-10 days, depending on the lender