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SBA Loans Overview
Get great rates, long repayment terms, and
low monthly payments with SBA loans.
Only takes 5 minutes and doesn't impact your credit score1
SBA Loans: The basics
You might have heard SBA loans are one of the better options when it comes to small business loans. Funds from these loans can be used in a multitude of ways to help a small business. What exactly is an SBA loan? We'll go over the costs, qualifications, use of proceeds, and more to help you determine if this type of loan is the best option to fund your small business.
What is an SBA Loan?
An SBA loan is a government-guaranteed small business loan that has a long-term and a low-interest rate. The Small Business Administration (SBA) is the government agency that partially guarantees SBA loans and was founded in 1953 to support small business owners across the United States.
The most common misunderstanding about these loans is that the agency lends money directly to small businesses. However, the agency typically does not make direct loans. The SBA provides a guarantee on the loan, promising to reimburse the bank for a certain percentage of your loan if you default on that loan. This guarantee lowers the risks to banks and other lenders, encouraging them to offer these loans to more American small businesses. Many banks and other financial institutions offer SBA loans, but their process, requirements, and fees can vary.
What can you use your SBA Loan for?
SmartBiz Bank SBA 7(a) loans from $50,000 – $500,0002 can be used for debt refinancing and working capital. Working capital includes operational expenses, marketing, hiring, etc. SBA loans can be used to fund new equipment purchases as well.
SBA 7(a) loans can also be used for refinancing existing business debt not secured by real estate (such as cash advances, business loans, and equipment leases).
Where can I apply for an SBA Loan?
Rather than spending your time going from bank to bank to find the best rates and service, SmartBiz can help you successfully and efficiently apply for a loan. You can receive funding through SmartBiz Bank directly, or through our network of lenders.
SBA loans offer low rates and long terms resulting in low monthly payments. Our platform helps you navigate the noise towards a ‘yes’ quickly by blending innovative technology with personalized service. This means that we have one intuitive application where you can submit documents, know where you are in the process, and also have a representative to call with any additional questions.
What do SBA Loans cost?
How much is an SBA loan going to cost you? The news here is positive—it's tough to beat the low interest rates and long repayment terms for these loans. SBA loans tend to be the least expensive financing available to small business owners.
SBA loans come with different rates depending on the lender you work with and the requested loan amount; however, the SBA establishes the maximum amount that can be charged for these loans. For Debt Refinancing and working capital loans on the SmartBiz platform, this is a Variable rate of Prime Rate plus 2.75% to 5.75%.3
Are there additional fees for SBA loans?
As with other types of small business loans, there are several fees associated with SBA loans from SmartBiz Bank or other SBA lenders in our network, including packaging fees and loan closing costs charged to the customer.
The SmartBiz Difference
Born in California after the 2008 financial crisis, SmartBiz was created to give small business owners easier access to low-cost capital.
At the heart of our mission is our vision to fuel the growth of our small business customers through thoughtful innovation. Gone are the days of complicated, slow, and outdated banking processes designed for large businesses. We've redefined the banking journey specifically for small businesses by combining cutting-edge technology and personalized customer support.
How have we streamlined the process to help small business owners successfully apply for a low-cost SBA loan quickly? First of all, we're very clear about the documents you need to apply for an SBA loan. If you have your paperwork in order, the process can move swiftly from prequalification to funding. Secondly, our online platform makes uploading documents and moving through the process a snap. We've greatly simplified the entire lending experience from end to end.
We believe an SBA loan is a great fit to help build most small businesses. SBA loans provide low rates and long terms resulting in low monthly payments so that you can fund the moves you want to make. If you're still not convinced, read what actual SmartBiz customers have to say on our TrustPilot page. You can also review interviews with real SmartBiz customers on the SmartBiz Small Business Blog. You'll discover we offer outstanding customer service to support business owners throughout the application process.