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:
Equipment and fixtures
Seasonal line of credit
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
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