SBA Loans From $5K–$5M: Fast, Low-Rate Financing for Small Businesses

An SBA loan is a small business loan backed by the U.S. Small Business Administration (SBA) that gives business owners access to capital with low interest rates, longer repayment terms, and minimal down payments. The SBA doesn't lend directly; instead, it partners with approved SBA lenders and guarantees a portion of the loan to reduce risk.

The most popular SBA loan programs are the SBA 7(a), SBA 504, and Microloan programs. Each type of SBA loan is designed to support different business needs, from working capital and equipment purchases to commercial real estate and refinancing. SBA 7(a) loans allow up to $5 million in funding, 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 than short-term business loans. Clarify Capital helps streamline the SBA process, offering lender match and reducing paperwork, so you can get approved faster.

This guide breaks down the most common SBA loan types, requirements, and benefits to help you understand your options and move forward with funding confidently.

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

Borrowers typically pay just 10% down, thanks to the SBA's partial guarantee. That's far less than traditional loans, making SBA loans more accessible for small businesses with limited upfront capital.

High Loan Amounts

SBA 7(a) and SBA 504 loan programs offer funding from $5,000 to $5 million, giving business owners flexibility for everything from equipment purchases to business acquisition.

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.

Competitive Interest Rates

APR typically starts near the prime rate and may be fixed or variable. Rates remain attractive for creditworthy borrowers, especially with SBA-guaranteed programs. They can have fixed rates or variable rates. Clarify helps you navigate the approval process to secure the best loan possible.

Versatile Use of Funds

SBA loans can be used for nearly any business purpose: purchasing fixed assets, expanding locations, hiring staff, refinancing existing debt, or building inventory.

Clarify Simplifies the Process

We guide you through the SBA loan application process, from gathering paperwork to matching you with the right SBA lender. Our dedicated advisors help reduce the typical approval timeline.

Find the Best SBA Loan Rates

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%).

Through the SBA 7(a) program, borrowers can receive up to $5 million in funding with low interest rates, longer repayment terms, and down payments starting at just 10%.

• Average interest rates: Based on daily prime rate (fixed or variable)

• 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

Pros

The pros of an SBA 7(a) loan include:

• Backed by the SBA for up to 85% of the loan amount

• Lower down payment than traditional loans

• Longer terms for repayment (up to 25 years)

• Competitive fixed or variable interest rates

• Flexible use of funds — from real estate to refinancing

Cons

The drawbacks of an SBA 7(a) loan include:

• Time-intensive application and underwriting process

• Significant documentation required

• Some loans may require personal collateral or guarantees

What Are SBA Microloans?

SBA Microloans are designed to support underserved business owners, including women, minority entrepreneurs, veterans, and startups, who need small amounts of working capital. These loans are funded by the U.S. Small Business Administration and distributed through nonprofit intermediaries like Community Development Financial Institutions (CDFIs) and local business centers.

Unlike the 7(a) program, Microloans are not SBA-guaranteed, but they still offer low interest rates and flexible repayment terms.

• Average interest rates: 8% to 13%

• Loan amounts: Up to $50,000

• Term length: Up to six years

• Minimum credit score needed: 575+

• Down payment: Not required

Pros

These are the pros of an SBA Microloan:

• Low-interest financing for startups and early-stage businesses

• Flexible terms for minority and women-owned businesses

• No collateral required in many cases

• Personal credit history is not a deal-breaker

Cons

The cons of an SBA Microloan include:

• Loan amounts capped at $50,000

• Application process can take 30+ days

• A detailed business plan and financial projections are usually required

Clarify Capital works closely with SBA-approved microloan lenders to help you navigate the process, identify the right program, and accelerate funding when possible.

SBA Loan Use of Funds

SBA loans offer flexible and long-term financing options to cover nearly any approved business purpose. You can use the money for all sorts of things, big or small. Here's a short list of what you can do with the funds. Here are some popular applications for SBA loans:

Growth and Expansion

These uses support scaling your footprint, increasing capacity, or investing in assets that help you grow:

• Purchasing commercial real estate

• Opening a new location

• Renovating or upgrading your business space

• Buying or leasing equipment and fixed assets

Operations and Working Capital

These options help you cover everyday costs and keep operations steady as revenue ebbs and flows:

• Payroll, taxes, and operating expenses

• Inventory purchases and restocking

• Utilities and rent

• Cash flow support during slow periods

Financial Strategy

Some borrowers use SBA funds to improve their balance sheet and create more breathing room month to month:

• Refinancing higher-interest debt

• Covering startup costs

• Building business credit

Clarify Capital helps ensure your loan use aligns with SBA eligibility requirements, so you stay compliant while reaching your goals.

Ready To Apply for an SBA Loan?

Whether you're purchasing equipment, acquiring real estate, or seeking long-term working capital, Clarify Capital simplifies the SBA loan process from start to finish. With loan amounts from $5,000 to $5 million, low down payments starting at 10%, and funding partners across all 50 states, we help small business owners access the capital they need, without the traditional delays.

See loan options tailored to your business goals and get prequalified in under two minutes. No obligations. No hidden fees.

Apply today with Clarify Capital's SBA preferred lending partners.

FAQs About SBA Loans

Thinking about an SBA Loan for your business? It can be a bit confusing at first. We've put together some common questions and simple answers to help you out. Take a look below and see how it all works.