Obtaining an SBA Loan

Small businesses often need financial support to get off the ground or grow, and one way to obtain that support is through a loan from the U.S. Small Business Administration (SBA). An SBA loan can offer favorable terms and interest rates, making it an attractive option for small business owners. Here’s what you need to know to obtain an SBA loan.

  1. Determine if you’re eligible.

To obtain an SBA loan, your business must be located in the United States, operate for profit, have a reasonable owner investment, and meet the SBA size standards. Your business must also demonstrate a need for the loan and show that it will be able to repay it. Certain types of businesses are not eligible, such as businesses that engage in illegal activities or that are primarily involved in lending or real estate investment.

  1. Choose the right type of loan.

The SBA offers several different types of loans, including 7(a) loans, microloans, and CDC/504 loans. Each loan has different terms, interest rates, and requirements, so it’s important to choose the right one for your business’s needs.

  1. Gather the necessary documents.

To apply for an SBA loan, you’ll need to provide several documents, including financial statements, tax returns, business plans, and personal financial statements. Be prepared to provide additional information if requested by the lender or the SBA.

  1. Find an SBA-approved lender.

While the SBA provides the loan guarantees, the loans themselves are made by approved lenders such as banks, credit unions, and other financial institutions. Find a lender that offers SBA loans and has experience working with small businesses.

  1. Complete the loan application.

Once you’ve chosen a lender, you’ll need to complete the loan application. Be sure to provide all the necessary information and documentation requested by the lender. The lender will then review your application and determine whether to approve the loan.

  1. Wait for approval.

The SBA loan approval process can take several weeks or even months, depending on the complexity of the loan and the lender’s workload. Be patient and prepared to answer any questions that may arise during the approval process.

  1. Receive the funds.

If your loan is approved, you’ll receive the funds from the lender. Be sure to use the funds for the purposes outlined in your loan application and to make payments on time to avoid default.

Obtaining an SBA loan can be a great way to finance your small business. By following these steps, you can increase your chances of securing an SBA loan and getting the support you need to succeed.


* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.