SBA Loans: Which Program Fits Your Business?
An SBA loan is a business loan made by a bank or another approved lender, with the SBA guaranteeing part of it. Microloans work differently: the SBA lends to a nonprofit intermediary, and that nonprofit lends to you. In both cases the SBA's backing lowers the lender's risk. That is why SBA rates are usually among the lowest in small business lending, for businesses that qualify and can wait.
There are four main programs:
- 7(a): the general program, up to $5 million.
- Express: a faster 7(a) for loans up to $500,000. The lender decides without SBA review.
- 504: long-term financing for real estate and long-life equipment.
- Microloans: up to $50,000, and open to startups.
The table compares them, with figures as of September 2026.
SBA loan programs compared, as of September 2026
| Program | Maximum | What it funds | Rate | Term | Typical speed | How the SBA backs it | Guide |
|---|---|---|---|---|---|---|---|
| 7(a) | $5 million | Working capital, equipment, buying a business, real estate, refinancing business debt | Negotiated with the lender. Variable rates capped by the SBA at 10% to 13.5% as of September 2026 (prime 7.00%; the cap depends on loan size) | Up to 10 years; up to 25 for real estate | Typical practice: 45 to 90 days through a standard lender, 2 to 4 weeks through a Preferred Lender | Guaranty of up to 85% on loans of $150,000 or less, up to 75% above | SBA 7(a) Loan Requirements, Rates and Terms (2026) |
| Express | $500,000 | Same uses as 7(a), plus revolving lines of credit | Negotiated with the lender. Variable rates capped by the SBA at 10% to 13.5% as of September 2026 | Lines of credit up to 10 years; term loans follow 7(a) rules | Typically 2 to 4 weeks, typical practice (the SBA lists no review time) | 50% guaranty. The lender decides without SBA review. Lenders are not required to take collateral on loans of $50,000 or less | SBA Express Loan: Limits, Rates and Terms (2026) |
| 504 | Generally $5 million ($5.5 million for certain energy or manufacturing projects) | Buildings, land, long-life equipment. Not working capital or inventory | Fixed on the CDC portion; the lender sets its own rate on its share | 10, 20 or 25 years | About 60 to 90 days, typical practice | Lender about 50%, CDC 40% backed by the SBA, you 10% in most cases (up to 20% for startups or special-purpose property). Fees about 3% of the debt, and can be financed | SBA 504 Loan: How It Works, Rates and Terms (2026) |
| Microloan | $50,000 (average about $13,000) | Working capital, inventory, supplies, equipment. Not real estate or paying off debt | Generally 8% to 13%, set by the intermediary | Up to 7 years | Usually 3 to 6 weeks, typical intermediary practice (the SBA publishes no processing time) | The SBA lends to a nonprofit intermediary, which lends to you. Startups qualify | SBA Microloans: Who They Actually Suit, and Who They Don't |
Rates as of September 2026, with prime at 7.00%. A cap is a ceiling, not a quote. Speed figures are typical practice, not SBA timelines.
For the fixed rate caps and what other types of lender charge, read Business loan rates in October 2026: what each type of lender charges.
Which SBA loan fits your business?
Pick by what you need:
- Under $50,000, or a startup: a microloan.
- Working capital, a business purchase or equipment, up to $5 million: 7(a).
- Up to $500,000 when speed matters: Express.
- Real estate or long-life equipment: 504.
If you need money in days, no SBA program fits. Online products move faster and usually cost more. What Business Financing Costs shows what that speed costs.
Who is eligible for an SBA loan?
SBA loan requirements start with the business. For 7(a) and Express, the business must be operating, for-profit, located in the U.S., small under SBA size standards, in an eligible industry, unable to get the credit it wants on reasonable terms elsewhere, and able to repay. 504 loans and microloans use their own versions of these tests. Microloans, for example, do not ask you to show you could not get credit elsewhere.
Since March 1, 2026 for 7(a), Express and 504 loans, and April 1, 2026 for microloans, every owner, direct or indirect, must be a US citizen or US national whose principal residence is in the US. Lawful permanent residents (green card holders) are not eligible. The SBA sets this out in Procedural Notice 5000-876626 and Policy Notice 5000-877232.
Lenders add their own credit, collateral and cash flow standards, and those decide most applications.
What disqualifies you from an SBA loan?
Three things: an ineligible line of business, an owner who is not a US citizen or US national living in the US, and no reasonable ability to repay. Under SBA rules (13 CFR 120.110), ineligible businesses include lenders (banks, finance companies and factors); passive businesses, such as a landlord or developer that does not use the property it buys; speculative businesses, such as oil wildcatting; and any illegal activity.
A lender can also decline you on its own standards. SBA 7(a) Loan Requirements, Rates and Terms (2026) sets out the full 7(a) requirements.
Can a new LLC get an SBA loan?
Yes, a new business can qualify. Microloans explicitly serve startups and set no minimum time in business.
7(a) lists starting a business as an eligible use, but many lenders look for two or more years of history, so a new business usually needs strong owner equity, a plan and collateral. Can you get a business loan in your first year? shows what a first-year business can reach.
Can I get a $100,000 SBA loan?
Yes, through 7(a), including Express. 7(a) goes up to $5 million and Express up to $500,000, so $100,000 fits inside both if a lender agrees.
As an example, $100,000 over 10 years at the SBA's 13.0% cap as of September 2026 costs about $1,493 a month, from our Business Loan Calculator: Monthly Payments and How Much You Can Borrow. A lender can offer less than the cap, and fees are extra.
The SBA does not require collateral on 7(a) loans of $50,000 or less, and lenders are not required to take it on Express loans of that size. At $100,000 the lender follows its own collateral policy, though a loan is not to be declined only because collateral falls short.
What is the easiest SBA loan to qualify for?
None is easy, and none is guaranteed. The best fit depends on what you lack.
- Microloans accept startups and smaller amounts, but each intermediary sets its own credit and collateral rules.
- Express is faster, not easier. The lender decides alone, so its own standards matter more.
- 7(a) covers the widest range of uses, but many lenders want two or more years of history.
Is there a $10,000 SBA grant?
No, not any longer. The $10,000 figure comes from the Targeted EIDL Advance, a pandemic-era program that stopped taking new applications on December 31, 2021.
The SBA says it "does not provide grants for starting and expanding a business." Its grants are narrow, such as research grants (SBIR and STTR) and export grants through the State Trade Expansion Program (STEP).
How long does an SBA loan take?
Weeks to a few months, depending on the program. In typical practice, a standard 7(a) loan takes 45 to 90 days, a 7(a) through a Preferred Lender 2 to 4 weeks, Express typically 2 to 4 weeks, a 504 about 60 to 90 days, and a microloan usually 3 to 6 weeks. These are typical timelines, not SBA commitments. The SBA's own review of a standard 7(a) loan takes 5 to 10 business days, and the rest depends on your lender and how complete your file is.
SBA 7(a) Loan Processing Time: How Long It Really Takes gives the stage by stage view. How Long Does It Take to Get a Business Loan? compares every product.
Frequently asked questions
What does an SBA loan mean?
An SBA loan is a business loan made by a bank or another approved lender, with the U.S. Small Business Administration guaranteeing part of it. You still owe the full loan. Microloans differ: the SBA lends to a nonprofit intermediary, which lends to you.
Who is eligible for an SBA loan?
SBA loan requirements start with the business. For 7(a) and Express, it must be operating, for-profit, U.S. based, small under SBA size standards, in an eligible industry, unable to get credit on reasonable terms elsewhere, and able to repay. Every owner must be a US citizen or US national living in the US.
Can a new LLC get an SBA loan?
Yes, a new business can qualify. Microloans explicitly serve startups and set no minimum time in business. 7(a) lists starting a business as an eligible use, though many lenders look for two or more years of history, so a startup usually needs strong owner equity, a plan and collateral.
Can I get a $100,000 SBA loan?
Yes, through 7(a), including Express. 7(a) goes up to $5 million and Express up to $500,000. As an example, $100,000 over 10 years at the SBA cap of 13.0% as of September 2026 costs about $1,493 a month. A lender can offer less, and fees are extra.
What is the easiest SBA loan to qualify for?
None is easy, and none is guaranteed. The best fit depends on what you lack. Microloans accept startups and smaller amounts, but each intermediary sets its own rules. Express is faster, not easier. 7(a) covers the widest uses, but many lenders want two or more years of history.
What is the $10,000 SBA grant?
There isn't one today. The $10,000 figure comes from the Targeted EIDL Advance, a pandemic-era program that stopped taking new applications on December 31, 2021. The SBA says it does not provide grants for starting and expanding a business. Its grants are narrow, such as research (SBIR, STTR) and export (STEP) programs.
What disqualifies you from getting an SBA loan?
Three things: an ineligible line of business, an owner who is not a US citizen or US national living in the US, and no reasonable ability to repay. Ineligible businesses include lenders, passive property holders, speculative ventures and illegal activity. A lender can also decline you on its own standards.
How long does an SBA loan take?
Weeks to a few months, depending on the program. In typical practice, a standard 7(a) loan takes 45 to 90 days, a 7(a) through a Preferred Lender 2 to 4 weeks, Express typically 2 to 4 weeks, a 504 about 60 to 90 days, and a microloan usually 3 to 6 weeks. These are typical timelines, not SBA commitments.
Not sure which program fits?
Answer a few questions and see the lending partners ready to make your business an offer. SBA loans are made by lenders, and TopFunders.ai is not a lender and not a loan broker. The partners you see depend on your answers, and an SBA loan may not be among them.
See the lending partners ready to make your business an offer
TopFunders.ai is not a lender, not a loan broker and not an SBA lender. We do not originate, underwrite, price or fund loans, and we make no credit decisions. A match is not an approval: each partner makes its own decision. Figures are as of September 2026. Rates, fees and limits change, so check sba.gov before you rely on them.
Sources
- SBA, loans overview
- SBA, 7(a) loans
- SBA, microloans
- SBA, grants
- SBA news release 22-06 (archived), Targeted EIDL Advance deadline
- SBA Procedural Notice 5000-876626, 7(a) and 504 owner citizenship
- SBA Policy Notice 5000-877232, microloan owner citizenship
- 13 CFR 120.110, ineligible businesses
- Prime rate 7.00%: Wall Street Journal Prime Rate, effective September 17, 2026