Best SBA Loans 2020
SBA loans are small-business loans guaranteed by the SBA and issued by participating lenders, mostly banks.
SBA loans are the cheapest business loans.
The SBA can guarantee up to 85% of loans of $150,000 or less and 75% of loans of more than $150,000. The average 7(a) loan amount was about $425,500 in 2018, according to the agency’s lending statistics. The program’s maximum loan amount is $5 million.
SBA loans are provided but banks or online lenders. On their official site you can find a matching tool that will help you find the best option for you.
The best place to start is the SBA website, which includes a loan application checklist. Use this to gather your documents, including your tax returns and business records. Here are some of the documents you’ll need before applying:
- SBA’s borrower information form
- Statement of personal history
- Personal financial statement
- Personal income tax returns (previous three years)
- Business tax returns (previous three years)
- Business certificate or license
- Business lease
- Loan application history
|Loan type||What you need to know|
|7(a) loan program (SBA’s flagship loan program)|
|504 loan program|
|SBA disaster loans|
|SBA loan size||7(a) loan paid off in under 7 years *||7(a) loan paid off in over 7 years *|
|$25,000 or less||9.50%||10.00%|
|$25,001 to $50,000||8.50%||9.00%|
|More than $50,000||7.50%||8.00%|
|*Rates calculated with the current prime rate of 5.25%|