$50K - $5M
SBA Loans
An SBA loan is a business loan of $50K to $5M made by a private lender and partly guaranteed by the U.S. Small Business Administration, with terms up to 25 years for real estate and 10 years for working capital. The 7(a), 504 and Express programs typically take 30 to 90 days from application to funding.
Written by Jordan Levy, Founder & CEO · Last updated
SBA Loans
$50K - $5M
What is an SBA loan?
SBA loans are government-backed financing programs administered through the U.S. Small Business Administration. They offer some of the longest repayment terms available to small businesses — up to 25 years for real estate and 10 years for working capital. The tradeoff is a more involved application process, which is exactly where Sagamore adds value. We guide you through every step: determining which program fits (7(a), 504, or Express), preparing your documentation, connecting you with SBA-preferred lenders, and shepherding the application through approval.
Key Features
- Partial guaranty from the U.S. SBA
- Terms up to 25 years
- 7(a), 504, and Express programs
- Full application guidance and support
Funding Range
$50K - $5M
Category
Specialty Programs
Specialized funding vehicles for unique business needs.
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Apply once and we will match you with the best options for your business.
Start ApplicationStep by Step
How does an SBA loan work?
Determine the right SBA program
We review your business profile, funding needs, and timeline to recommend the right program — 7(a) for general business purposes, 504 for real estate and equipment, or Express for faster decisions on smaller amounts.
Prepare your application package
SBA loans require more documentation than conventional products. We help you assemble everything — business plan, financial projections, tax returns, and SBA-specific forms — so nothing is missing when the application is submitted.
Submit to SBA-preferred lenders
We connect you with lenders who have established SBA relationships and high approval rates. Your pre-packaged application moves through their process faster because the documentation is complete and organized.
Close and receive funding
After SBA approval, the lender finalizes the loan and disburses funds. Typical timelines are 30-90 days from application to funding, depending on the program and deal complexity.
Why Choose This Product
Why use an SBA loan?
Government-Backed
The SBA guarantees part of each loan, which lets lenders offer longer terms and lower down payments than many conventional loans.
Longest Terms
Up to 25 years for real estate, 10 years for working capital. Longer terms mean lower monthly payments and better cash flow.
Expert Navigation
The SBA process is complex. We handle the paperwork, lender matching, and application management so you can focus on your business.
Eligibility
Who qualifies for an SBA loan?
- Minimum 650 credit score (SBA programs typically require higher credit than conventional business loans)
- At least 2 years in business
- At least $400,000 in annual revenue
- Business must meet SBA size standards for your industry
- Must be a for-profit business operating in the United States
- Business owner must have no recent bankruptcies, defaults, or government debt delinquencies
- Demonstrated ability to repay from business cash flow
Real-World Scenarios
How do businesses use an SBA loan?
A bakery owner uses an SBA 7(a) loan for $350K to open a second location, taking advantage of a 10-year term that keeps the monthly payment within the new location's projected cash flow.
A manufacturing company secures an SBA 504 loan for $1.5M to purchase and renovate an industrial facility, putting down only 10% compared to the 25% required by conventional lenders.
A veterinary practice obtains an SBA Express loan for $75K in working capital within two weeks, using the streamlined process for smaller loan amounts.
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How does an SBA loan compare to other options?
SBA loans offer the longest terms of any business lending product, but they come with the most involved application process and longest approval timelines. If you need capital within days rather than weeks, a term loan or line of credit provides faster access with shorter terms. For commercial real estate specifically, the SBA 504 program offers lower down payments than conventional commercial mortgages, but the process is more complex. Equipment financing is a simpler alternative to SBA loans for equipment purchases, though SBA terms can run longer.
Frequently Asked Questions
Common questions about SBA Loans
Most SBA loan programs require a minimum credit score of 650-680, which is higher than many conventional business lending products. The SBA places significant weight on credit history, including no recent defaults, bankruptcies, or government debt delinquencies.
SBA loans typically take 30-90 days from application to funding, depending on the program. SBA Express can close in 2-4 weeks for amounts under $500K. Standard 7(a) and 504 loans take longer due to additional underwriting and government approval steps.
SBA loans require comprehensive documentation: 2-3 years of business and personal tax returns, a business plan with financial projections, current financial statements, a personal financial statement (SBA Form 413), a statement of ownership, and various SBA-specific forms. We help you compile everything.
SBA 7(a) is the most versatile program — use it for working capital, equipment, real estate, or debt refinancing. SBA 504 is specifically designed for real estate and major equipment purchases, typically offering lower down payments (10%) and fixed rates on the SBA-guaranteed portion. The right choice depends on your specific use of funds.
Not if it is under one year old: every program Sagamore brokers requires at least 1 year in business, $400,000 or more in annual revenue and a 600 credit score. Between one and two years, some SBA programs, particularly SBA Express, may accept a business with strong personal credit and relevant industry experience. Standard 7(a) and 504 programs generally prefer two years.
Yes. SBA loan applications involve a hard credit inquiry as part of the underwriting process. FICO does not group business loan inquiries the way it groups mortgage or auto inquiries, so each hard pull can count. Applying once through us means only the lender you choose runs one.
By Industry
Which industries use an SBA loan?
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