SBA Loans

  • Borrow $5,000 to $5,000,000
  • APR as low as 5.75%
  • Funding in as little as 3 weeks
  • Longest term lengths
  • Lowest down payments
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Working Capital Loans

SBA 7(a) and Microloans for business growth.

What is an SBA Loan?

The Small Business Administration (SBA) allows business owners to get financing through an SBA-approved lender. The agency itself doesn't fund you the money. Instead, the SBA guarantees your loan amount up to 85% with the lender.

The two most popular SBA loan programs are the 7(a) and Microloans. Both provide you working capital at the lowest industry APRs and long-term lengths. The SBA 7(a) allows a maximum loan amount of $350,000, while Microloans range from $500 to $50,000.

The main downsides to SBA loans are the amount of paperwork needed and the longer application process as compared to short-term business loans.

Benefits of SBA Loans

While securing an SBA loan is a lengthy process that requires quite a bit of paperwork and time, it's one of the best ways to fund a business or refinance existing debt. The capital you get from an SBA loan can be used for all business purposes including buying equipment or inventory, refinance existing debt, or opening a new location.

Low down payments

Since the financing is partially backed by the Small Business Administration, lenders have the lowest down payment requirements. The average down payment for SBA 7(a) loans is 10% of the total amount.

Federally guaranteed up to $5M

The Small Business Administration provides a guarantee to the lender for up to 85% of the total loan amount. This mitigates the risk for lenders to lend you the working capital needed.

Long term lengths

The 5 to 25-year term length offered by SBA loans are usually the longest as compared to traditional financing options. The longer term allows a business owner to pay it back at a slower pace.

Low interest rates

Starting at 5.75%, SBA loans offer good APR rates through it's approved banks and lending partners. Clarify helps you navigate the approval process to secure the best loan possible.

Capital can be used for any business purpose

The financing secured through an SBA loan be used for a wide range of business expenses. Everything from buying real estate to consolidating existing debt to a lower interest rate.

What are SBA 7(a) loans?

The SBA 7(a) loan is the most popular financing option offered by the agency. The 7(a) was created to level the playing field for small businesses to secure working capital from commercial lenders.

A startup business that wouldn't have the cash flow history to secure a traditional loan, can be eligible to secure an SBA loan since it's partially guaranteed by the federal government (up to 85%).

  • Average interest rates: 5% to 10%
  • Loan amounts: Up to $5,000,000
  • Term length: 10 years for working capital loans, 25 years for real estate loans
  • Minimum credit score needed: 640+
  • Down payment: 10% to 20% of the total loan amount


  • Backed by the Small Business Administration up to 85%
  • Long term lengths
  • Capital can be used for any type of business expense
  • Competitive interest rates


  • High paperwork and documentation requirements to apply
  • Time to get funded is long compared to traditional loans
  • Requires a down payment
  • Some collateral is needed to secure a loan

What are SBA Microloans?

The SBA Microloan program is designed to provide funding to non-profit lenders that in turn provide financing to for-profit businesses. As compared to 7(a) loans, SBA Microloans have a maximum financing amount of $50,000 and are not guaranteed by the federal agency.

  • Average interest rates: 8% to 13%
  • Loan amounts: Up to $50,000
  • Term length: Up to 6 years
  • Minimum credit score needed: 575+
  • Down payment: not required


  • Great financing option for underserved business owners like women, veterans, and minorities
  • Business owners with limited credit history can qualify
  • Low interest rates
  • Longer term length as compared to traditional loans


  • Limited to $50,000 in working capital
  • Lengthy process that can take 30 days or more
  • Must provide a business plan with estimated financial projections
  • Some collateral is needed

Apply for an SBA Loan

Frequently Asked Questions about SBA Loans

On average, it takes around 3 to 6 months to receive funds, though the duration of the process varies depending on a number of factors. Things generally move slowly because the SBA has to work with banks and outside lenders to complete the transaction.
Capital can be used for a wide range of business-related expenses. Common uses include the following: start-ups, emergencies, real-estate, mortgages, and buying equipment.
For COVID EIDL loans, small businesses, U.S. agriculture businesses with less than 500 employees, and non-profit organizations can be eligible. For declared disasters, the list of businesses eligible for funding becomes even more expansive.
The application process tends to be drawn out and paperwork heavy. Lenders will want to carefully review all documentation to make sure all eligibility criteria is met.

SBA loan use of funds

  • check Equipment needs
  • check Inventory and supplies
  • check Pandemic & coronavirus relief
  • check Refinancing debt
  • check Payroll & taxes
  • check Rent & utilities
  • check Business expansion
  • check Purchasing real estate
  • check Repairs & upgrades
  • check Leasing

SBA loans at a glance

  • check Rates starting at 5.75%
  • check 30 – 90 day closing
  • check $5K - $5M available in funding
  • check 10-year working capital loan
  • check 25-year real estate backed loan


  • keyboard_arrow_right Strong personal credit, financials, industry, and time in business required

Note: These are general SBA loan qualifications. Other information might be considered during your application. Your dedicated Clarify advisor will guide you through it!

Alternatives to SBA loans

Dedicated experts in SBA loans

When you choose Clarify, we consider you family -- and work with you throughout the process of getting your business funded with an SBA loan.Clarify Capital Financing Team

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