SBA Loans

  • Borrow $5,000 to $5,000,000
  • APRs 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?

An SBA loan is a small business loan through the U.S. Small Business Administration (SBA) that allows business owners to get financing through an SBA lender. The agency doesn’t fund you. 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 working capital at the lowest industry APRs and long-term repayment lengths. The SBA 7(a) allows a maximum loan amount of $350,000, while Microloans range from $500 to $50,000. You can learn more about loan options at

The main downsides to SBA loans are the amount of paperwork needed and the longer application process than short-term business loans. Clarify Capital can help you through the process and find the ideal lender match.

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, refinancing existing debt, or opening a new location.

Low Down Payments

Since the SBA partially backs the financing, borrowers 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 SBA 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 five- to 25-year loan term lengths offered by SBA loans are usually the longest compared to traditional financing options. The longer repayment terms allow business owners to make monthly payments at a slower pace.

Low Interest Rates

Starting at prime rates of 5.75%, SBA loans offer good APR rates through its approved banks and lending partners. They can have fixed rates or variable rates. 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 can be used for various business needs. Buying real estate, equipment purchases, consolidating existing business debt to a lower interest rate, or other common business financing needs are appropriate for this type of loan.

What Are SBA 7(a) Loans?

The agency’s most popular financing option is the SBA 7(a) loan. The SBA created the 7(a) 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%
  • Maximum loan amounts:
    Standard - $5 million
    Small Loan - $350,000
    SBA Express Loan - $500,000
    Export Express - $500,000
    Export Working Capital - $5 million
    International Trade - $5 million

  • 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 SBA 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
  • The 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 nonprofit lenders that provide financing to for-profit businesses. Compared to 7(a) loans, SBA Microloans have a maximum financing amount of $50,000 and aren’t 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 compared to traditional loans


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

Apply for an SBA Loan


On average, it takes around three to six months to receive funds, although the duration of the process depends 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 startups, emergencies, real estate, mortgages, and buying equipment.
For COVID EIDL loans, small businesses, U.S. agriculture businesses with less than 500 employees, and nonprofit organizations can be eligible. The list of businesses eligible for funding becomes even more expansive for declared disasters.
The SBA loan application process tends to be drawn out and paperwork-heavy. Lenders will want to carefully review all documentation to make sure all financial statements, tax returns, and eligibility criteria are met to limit the risk of default.

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 start at 5.75%
  • check 30- to 90-day closing
  • check $5K to $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 adviser 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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