What’s the difference between SBA 7(a) and SBA 504 loans?

SBA 7(a) loans up to $5M can be used for almost any business purpose — working capital, equipment, acquisitions, and real estate. SBA 504 loans up to $5.5M are specifically for real estate and large equipment, with lower rates and up to 25-year terms but more restrictions on use.

How long does it take to get an SBA loan approved?

Through our SBA-preferred lender network, most SBA loans close in 3-4 weeks. Traditional bank SBA departments typically take 60-90 days. The difference is that our lenders specialize in SBA processing and have delegated authority to approve without SBA review.

What credit score do I need for an SBA loan?

Most SBA lenders require a minimum credit score of 650-680. Some lenders in our network will consider scores as low as 620 with strong compensating factors like high revenue, long time in business, or significant collateral.

Can I use an SBA loan to buy an existing business?

Yes — this is one of the most popular uses of SBA 7(a) loans. You can finance business acquisitions up to $5M including the purchase price, working capital for transition, and even some seller debt. Down payments of 10-20% are typical.

How much down payment do SBA loans require?

SBA 7(a) loans typically require 10-20% down. SBA 504 loans for real estate require just 10% down — compared to 25-30% for conventional commercial loans. This preserves your working capital for operations.

Can a startup get an SBA loan?

It’s harder but possible. Startups typically need relevant industry experience, a strong business plan, personal assets or collateral, and often a higher down payment (15-20%). SBA microloans up to $50K have less stringent requirements for newer businesses.

What documentation do I need for an SBA loan?

Typical requirements include 2-3 years of business and personal tax returns, year-to-date financial statements, a debt schedule, and a business plan (for startups or acquisitions). Our team helps you prepare a complete package to avoid delays.

Does applying for an SBA loan affect my credit score?

The initial pre-qualification uses a soft pull with zero FICO impact. A hard credit pull occurs during formal underwriting after you decide to proceed with a specific lender.

Small business owners meeting with SBA loan advisor in office

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SBA Loans

SBA loans are partially guaranteed by the U.S. Small Business Administration, giving lenders more confidence and you better rates, longer terms, and higher limits. The gold standard of small business lending.

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$50K - $5M

Loan Amounts

5 - 25 years

Terms

30 - 90 days

Speed to Fund

650+

Min. Credit

✓ No Minimum Credit Score✓ $10K+ Monthly Deposits✓ 6+ Months in Business✓ No Hard Credit Pull✓ All Industries

SBA Loans

See What You Qualify For in 60 Seconds

Slide the calculator to see your estimated approval range. Then answer 3 quick questions. No documents needed. No credit impact.

✓Estimated range appears instantly

✓Auto-advances as you answer — no extra clicks

✓Soft credit pull only — your FICO stays untouched

✓Real specialist reviews your file within the hour

✓No obligation — see your options and decide

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Revenue

History

Contact

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Slide to your average monthly bank deposits.

$10K$75K/mo$2M+

Estimated Approval Range

$75K – $113K

Based on 100-150% of monthly revenue

No hard credit pull · No obligation · Estimate only

Your Application Gets Matched Across 70+ Lending Partners

SBA Preferred Lenders

Community Banks

Credit Unions

Specialty Finance Companies

Online Lending Platforms

70+ vetted lending partners competing for your business

How It Works

How SBA Loans Work

The SBA doesn't lend directly. Instead, it guarantees a portion of your loan through an approved lender, reducing the lender's risk. This means you get lower rates and longer repayment terms than conventional loans. The tradeoff: more paperwork and a longer approval process.

Best For

Ideal Use Cases for SBA Loans

✓Large expansion or acquisition projects

✓Commercial real estate purchases

✓Major equipment investments

✓Refinancing existing high-cost debt

✓Businesses with strong financials wanting best terms

✓Partner buyouts and ownership transitions

Real Scenarios

Who Uses SBA Loans?

These are the kinds of situations where sba loans make the most sense.

Acquiring a Competing Business

A regional HVAC company uses a $1.2M SBA 7(a) loan to acquire a competitor, doubling their service territory and technician headcount overnight.

Purchasing an Owner-Occupied Warehouse

A wholesale distributor secures an SBA 504 loan to buy a 20,000-square-foot warehouse, putting just ten percent down and locking in a 25-year term.

Major Equipment Investment

A manufacturing firm takes an SBA loan to purchase $800K in CNC equipment, benefiting from low fixed rates that conventional lenders cannot match.

Refinancing High-Cost Debt

A medical practice consolidates three merchant cash advances into a single SBA term loan, cutting their effective interest rate by more than half.

Launching a Second Location

A successful bakery owner opens a second storefront using an SBA 7(a) loan that covers buildout, equipment, inventory, and three months of working capital.

Partner Buyout

A law firm partner uses an SBA loan to buy out a retiring partner's equity stake, structuring repayment over ten years with manageable monthly installments.

Full Transparency

Pros & Cons of SBA Loans

We believe in full transparency. Here's what you should know.

✅ Advantages

✓Lowest rates available (Prime + 2-3%)

✓Longest repayment terms (up to 25 years)

✓Highest loan amounts (up to $5M)

✓Fixed or variable rate options

✓Can be used for almost any business purpose

⚠️ Considerations

•Lengthy approval process (30-90 days)

•Extensive documentation required

•Higher credit requirements (650+)

•Collateral often required

•Personal guarantee required

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What It Actually Costs

SBA Loan Pricing - Full Transparency

Interest Rate: 6% - 10% APR (typical range)

✓Government-backed loans offer the lowest rates and longest terms available

✓SBA 7(a) up to $5M for general business purposes

✓SBA 504 up to $5.5M for real estate and large equipment

Terms and Structure:

✓5-10 years for working capital and equipment

✓Up to 25 years for commercial real estate

✓Fixed monthly payments - no daily or weekly ACH

✓Down payments of 10-20% typical

Fees

SBA guarantee fee of 0-3.5% depending on loan size. Packaging fees vary by lender. No prepayment penalty on loans under $150K or after 3 years on larger loans.

The Tradeoff

SBA loans have the best rates but take 30-60 days to close and require more documentation (tax returns, financial statements, business plan for startups). Best for planned expansions, acquisitions, and real estate - not emergencies.

Typical Cost Examples

•$250K SBA 7(a), 8% APR, 10 years = $3,033/month - $363,960 total

•$1M SBA 504, 6.5% APR, 25 years (real estate) = $6,752/month - property as collateral

•$500K SBA 7(a), 7.5% APR, 10 years = $5,927/month - $711,240 total

SBA loan rates are tied to the Prime Rate plus a lender spread. Rates shown reflect typical ranges. Approval requires SBA eligibility, adequate cash flow, and lender underwriting. Our SBA-preferred lender network often closes 2-3 weeks faster than traditional bank SBA departments.

Full Transparency

Is SBA Loans Right for You?

Honest answer. Not every product is the right fit. Here's how to tell.

✅ Good Fit If…

✓You have a credit score of 650+ and at least 2 years in business

✓You need the lowest interest rates and longest repayment terms available

✓You can wait 30-90 days for funding without a cash emergency

✓You are making a large investment like real estate, acquisition, or major equipment

✓You have clean financials and can provide tax returns and a business plan

✓You want to refinance existing high-cost debt at a lower rate

✓You are comfortable with a personal guarantee and collateral requirements

🚫 Consider Something Else If…

•You need funding in days, not months - a Working Capital Loan or Line of Credit can fund in 24-72 hours

•Your credit score is below 650 - Working Capital and Revenue-Based Financing have no credit minimums

•You cannot provide extensive documentation or financial statements - alternative products require far less paperwork

•You need a small amount under $50K - a Working Capital Loan or Line of Credit is more practical

•You need to finance specific equipment only - Equipment Financing is faster and purpose-built

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Compare

How SBA Loans Compare

Side-by-side look at how this product stacks up against alternatives.

	SBA Loan	Term Loan	Working Capital Loan
Speed to Fund	30 - 90 days	2 - 7 business days	Same day - 48 hrs
Amounts	$50K - $5M	$25K - $5M	$10K - $2M
Repayment Structure	Fixed monthly, 5-25 yrs	Fixed monthly, 1-5 yrs	Fixed daily/weekly ACH
Min. Credit Score	650+	600+	No minimum
Collateral	Often required	Sometimes required	None
Best For	Lowest rates & longest terms	Mid-range rate & speed	Speed & flexibility

Ready?

See What You Qualify For. No Credit Impact.

Slide the calculator, answer 3 questions, and a specialist pulls your options within the hour.

✓Estimated approval range appears instantly

✓Auto-advances — no extra buttons to click

✓Soft pull only — FICO untouched

✓70+ lenders compete for your business

✓No obligation to accept any offer

Estimate

Revenue

History

Contact

See What You Could Qualify For

Slide to your average monthly bank deposits.

$10K$75K/mo$2M+

Estimated Approval Range

$75K – $113K

Based on 100-150% of monthly revenue

No hard credit pull · No obligation · Estimate only

Industries

Popular in These Industries

SBA Loans are a top choice for business owners in these sectors.

You Might Also Need

Many businesses combine multiple products to cover different needs.

Term Loans

Need funds faster than SBA timelines? Term loans close in days, not weeks.

Learn More →

Equipment Financing

If the purchase is primarily equipment, asset-backed financing often gets better rates.

Learn More →

Commercial Real Estate Loans

For property purchases specifically, commercial real estate loans are purpose-built.

Learn More →

Free Tools

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Commercial Funding Calculator

Model SBA 7(a) and 504 loan costs from $500K to $10M.

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Loan Cost Calculator

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Qualification Estimator

See if your business profile qualifies for SBA products.

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FAQs

SBA Loans FAQs

SBA Loans for Small Business - $50K to $5M Through Preferred Lenders

SBA loans through Basecamp Funding's network of SBA-preferred lenders offer the lowest rates and longest terms available for small business financing. SBA 7(a) loans up to $5M for working capital, equipment, and acquisitions. SBA 504 loans up to $5.5M for commercial real estate and large equipment. Typical APRs range from 6% to 10%.

Business owners use SBA loans for practice and business acquisitions, commercial real estate purchases, large equipment portfolios, franchise development, and major expansion projects. Construction, healthcare, manufacturing, restaurants, attorneys, and every other industry eligible. One 60-second pre-qualification, no hard credit pull. Our preferred lender network closes SBA loans in 3-4 weeks.

★★★★★

“SBA 7(a) for $350K to buy an existing dental practice. Took 45 days but the rate was unbeatable. Bobby's team handled the paperwork nightmare.”

Dr. Sarah K.

Dentist | Phoenix, AZ

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