Lendio: SBA Loans

Government-backed Small Business Financing
The U.S. Small Business Administration (SBA) is a federal agency dedicated to helping small businesses secure funding.
19170 Reviews
$500 to $5,500,000
Loan Amount
10 to 30 Years
Loan Term
Prime+
Interest Rate

Details

Best For
Small Businesses
Type of Loan
U.S. Small Business Administration (SBA) Loans
Interest rates
Prime+
Loan Amount
$500 to $5,500,000
Loan Term
10-30 Years
Access to Funds
1 to 2 months following approval

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Are you interested in getting an SBA loan for your business? It can be challenging to walk into a bank and get approved, given the complexity of the application process. But you have options. 

Consider a small business loan marketplace, like Lendio, to lend a helping hand. It lets you view potential matches from its network of over 75 reputable lenders, including Bank of America, Chase, American Express, LendingClub, On Deck Capital, Fundbox, PayPal and Funding Circle. And suppose an SBA loan doesn’t quite work out. In that case, you can also explore over 10 other funding options to secure the capital your business needs to expand and thrive. 

Wondering what makes Lendio the right choice to search for a loan? Not only is it accredited by the Better Business Bureau (BBB) with an A+ rating, but the platform is rated by Forbes Advisor as one of the top lender comparison sites. Lendio has also helped initiate funding for over 300,000 small business loans, which amounts to more than $12 billion in total funding. 

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Lendio: SBA Loans

Government-backed Small Business Financing

What is an SBA Loan?

SBA loans are backed by the U.S. Small Business Administration (SBA), a federal agency designed to help fund small businesses. Loans are originated by SBA-approved lenders, and a percentage of the loan amount is guaranteed by the federal agency. However, the SBA creates the guidelines that lenders must abide by when originating these loans. 

Types of SBA Loans

SBA 7(a) Loan

The SBA 7(a) Loan is commonly used to cover land acquisition and construction costs, purchase or expand an existing business, refinance debt or purchase materials, furniture, supplies and machinery. 

SBA 504 Loan

The SBA 504 Loan funds qualifying projects, which could include:

  • the purchase or renovation of an existing building, facility or land
  • the purchase of a new facility
  • the purchase of long-term machinery
  • land improvements. 

Small businesses can also use SBA 504 loans to refinance debt related to business renovations and expansion. Upon approval, the lender releases 50 percent of the costs, and the SBA provides funding for an additional 40 percent. The remaining 10 percent of project costs is the borrower’s responsibility. Your business net worth should be under $15 million, and you’ll need an average net income that doesn’t exceed $5 million for the past two years to qualify for funding. 

SBA Express Loan

SBA Express Loans cater to small businesses that need working capital sooner than later. In most instances, loan applications are reviewed in just 36 hours, if not sooner, to reach a lending decision. However, you likely won’t receive funding for at least 30 days. 

Small business owners have two options to use the loan proceeds: 

  • Working capital with a term that spans 5 to 10 years
  • Line of credit that comes with a 7-year term
  • Commercial real estate loan with a 25-year loan term 

What Are The Typical Terms of an SBA Loan?

Loan Terms

Most SBA loans generally come with loan terms between 10 and 30 years. 

Fees and Interest

Fees vary by loan product and lender, but the interest rates are very competitive. 

Loan Amount

The loan amount depends on the product you select: 

  • SBA 7(a) Loan: up to $5 million
  • SBA 504 Loan: up to $5 million
  • SBA Express Loan: up to $350,000

Quick note: Collateral may be required for SBA 7(a) Loans and SBA Express Loans over $25,000. 

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Lendio: SBA Loans

Government-backed Small Business Financing

How to Qualify for an SBA Loan

SBA loans typically have less stringent qualification criteria than traditional bank loans. Still, the application process can be challenging to navigate. These loan products call for more paperwork and an extensive review process. 

The good news is Lendio can help streamline the application process with its user-friendly dashboard and digital upload capabilities. 

How to Apply for an SBA Loan with Lendio

When you’re ready to apply for an SBA loan, visit Lendio’s website to get started. But first, you want to gather the following documents as you’ll need them to complete the application: 

  • Two years of personal and business tax returns
  • A year-to-date profit and loss statement
  • A year-to-date balance sheet
  • A current schedule of debts for your business

Once you have these documents handy, here’s what to do next: 

  • Step 1: Complete the online application through the borrower portal free of charge without impacting your credit score. You’ll be asked to provide your business start date, identifying personal information and business information, and business documents. 
  • Step 2: If there’s a match, Lendio will present you with loan options from its network of lenders. 
  • Step 3: Submit any additional documentation and provide the lender with the necessary information to finalize your loan application. 
  • Step 4: Get approved and wait for the funds to arrive in your bank account. 

What Other Business Loan Options Do You Have?

If you don’t qualify for an SBA loan, Lendio may be able to help you find another option that works for your business. Its lending partners also offer these financing products:

FAQs About SBA Loans (2)

  • Is there a quick turnaround for SBA disaster loan approval?

    SBA disaster relief loans, or EIDLs, are available for small businesses, farms, and non-profits who can’t meet expenses due to a disaster like fire, flood, or other events and are limited to federally declared disaster areas. An EIDL loan’s turnaround is about 21 days, assuming all documents are submitted with the original application. The slow turnaround is worth it for many borrowers as the interest rate is 4%.

  • Can you check the status of an SBA loan?

    When you apply for a Lendio SBA loan, you can log in to the SBA website to check your application’s status. 

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Lendio: SBA Loans

Government-backed Small Business Financing

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