Give your business room to grow
SBA loans are partially backed by the U.S. government and the Small Business Administration, which gives lenders greater opportunity to work with growing businesses.
SBA loans can be used for a variety of purposes, including starting a business, financing business expansion, purchasing real estate or equipment, and more.
Which SBA loan type is right for me?
Maximum loan amount
7(a) LoanUp to $5 million gross
(504) LoanRanges from $5 million to $5.5 million
Percent of guaranty
7(a) Loan• 85 percent guaranty for loans of $150,000 or less • 75 percent guaranty for loans greater than $150,000 (up to $3.75 million maximum guaranty)
(504) Loan• Certified Development Company (CDC): up to 40 percent non-guranteed financing • Lender: 50 percent Equity: 10 percent plus additional 5 percent if new business and/or 5 percent if special user property
Who can qualify
7(a) Loan• Must be a for-profit business and meet SBA size standards • Show good character, credit, management and ability to repay • Must be an eligible type of business.
(504) Loan• For-profit businesses; less than $15 million tangible net worth • Average two full fiscal year net income less than $5 million • Refinance requires business/commercial debt to be two years or older.
7(a) Loan• Long-term financing • Improved cash flow • Fixed maturity • No balloons • No prepayment penalty (under 15 years)
(504) Loan• Low down payment • Equity (10 to 20 percent) • Fees can be financed • SBA portion: long-term fixed rate • Full amortization • No balloons
7(a) LoanPrepayment penalty may apply for loans with maturities of 15 years or more if prepaid during first three years (5 percent year one, 3 percent year two and 1 percent year three)
(504) LoanDeclining prepayment penalty will apply on the SBA-backed portion of the loan for the first 10 years of loan term, based on the loan amount and funding rate
Interested in connecting with a business lending specialist to get a full understanding of how you can make an SBA loan work for you? Contact us:
How long will it take to repay my business loan?
Which business loan term should I choose?
How much money do I need to start my business?
Should I own or lease my business location?
What’s the difference between an SBA loan and a regular business loan?
SBA loans are provided through RBFCU and partially backed by the U.S. government. This additional layer of financial backing means potential flexibility for your business. SBA loans may have the potential to provide borrowers with lower down payment requirements and longer loan terms to assist with minimizing monthly payments and improving cash flow.
Why should I choose an SBA loan instead of a conventional business loan?
An SBA loan can be beneficial if you are seeking flexibility in your loan terms. If you are uncertain about the type of loan you may need, our business lending specialists can work with you to determine which option best suits your business.
Can I use an SBA loan to fund a startup?
Yes, SBA loans can be used to fund startups. The 7(a) or (504) options may fit your financing needs.
Are there any fees associated with applying for an SBA loan?
There are no fees associated with applying for an SBA loan.
What are the interest rates for SBA loans?
Interest rates are indexed to the Prime Rate, and are based on multiple factors, including collateral, loan term, loan amount and business credit. Once you begin the loan process, your SBA loan specialist can provide additional details on rates you may qualify for.
Business Lending rates and terms are subject to change and are offered with approved credit.