SBA Loans

Give your business room to grow with SBA Loans

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?

7(a) Loan

(504) Loan

Maximum loan amount + -

7(a) Loan

Up to $5 million gross

(504) Loan

Ranges 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-guarantied 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
Benefits + -

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
Prepayment penalties + -

7(a) Loan

Prepayment 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) Loan

Declining 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

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“RBFCU quickly took action and was able to successfully close my loan in 18 days! All the parties involved were amazed at the quick turnaround.”


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:

  • What's the difference between an SBA loan and a regular business loan?
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    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?
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    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?
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    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?
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    There are no fees associated with applying for an SBA loan.

  • What are the interest rates for SBA loans?
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    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 Business Lending 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.