U.S Small Business Administration (SBA)

The 7(a) loan program is SBA's primary business loan program for providing financial assistance to small businesses. 

• Acquiring, refinancing, or improving real estate and buildings

• Short- and long-term working capital 

• Refinancing current business debt 

• Purchasing and installation of machinery and equipment, including AI-related expenses

• Purchasing furniture, fixtures, and supplies 

• Changes of ownership (complete or partial)

• Multiple purpose loans, including any of the above

The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. 

Smaller-size loans of up to $50,000 provided through SBA funding intermediaries. 

Microloans  can  be used for a variety of purposes that  help small businesses expand. Use them when you need  less than $50,000 to  rebuild, re-open, repair, enhance, or improve your small business.

Examples include: 

• Working capital 

• Inventory 

• Supplies 

• Furniture 

• Fixtures 

• Machinery 

• Equipment 

Proceeds from an SBA microloan  cannot  be used to pay existing debts or to purchase real estate.  The microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. The average microloan is about $13,000.

SBA provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers.

Lenders use credit scores to determine credit risk and interest rates. SBA helps guarantee some loans that otherwise may not qualify.

Long-term, fixed rate financing of up to $5 million for major fixed assets. The 504-loan program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation.

504 loans are available through Certified Development Companies (CDCs), SBA's community-based nonprofit partners who promote economic development within their communities. CDCs are certified and regulated by SBA. The maximum loan amount for a 504 loan is $5.5 million.  A 504 loan  can be used for a range of assets that promote business growth and job creation. These include the purchase or construction of: 

• Existing buildings or land 

• New facilities 

• Long-term machinery and equipment with a useful remaining life of a minimum of 10 years, including project-related AI-supported equipment or machinery for manufacturing products

Or the improvement or modernization of: 

• Land, streets, utilities, parking lots and landscaping 

• Existing facilities 

A 504 loan  cannot  be used for: 

• Working capital or inventory 

• Consolidating, repaying or refinancing debt 

• Speculation or investment in rental real estate

• The financing of AI-related working capital, intellectual property, or consulting services soft costs

Before you start talking to lenders, have a look at the abbreviated checklist below to see if you're ready for a traditional SBA loan.

Many lenders require you to use another asset to guarantee your loan. This can be a home, car, inventory, or other property you own.